1  “Michigan Public School Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2011,” (Michigan Office of Retirement Services, 2011), 46, http://goo.gl/hyUcr (accessed Feb. 15, 2012).

2  See, for instance, Kathryn Summers-Coty, “Examining a Change from Defined Benefit to Defined Contribution for the Michigan Public School Employees’ Retirement System,” (Michigan Senate Fiscal Agency, 2009), http://goo.gl/jnzaB (accessed May 8, 2010), and Bethany Wicksall, “Converting MPSERS from a Defined Benefit (DB) to a Defined Contribution (DC) System,” (Michigan House Fiscal Agency, 2009), http://www.house.mi.gov/hfa/PDFs/MPSERS.pdf (accessed Feb. 17, 2012). See also the undated and unposted “The Cost of Converting the Michigan Public School Employees Retirement System to a Defined Contribution Plan,” (Michigan Office of Retirement Services).

3  Thomas Jefferson, letter to John Holmes, April 22, 1820 (Library of Congress), http://goo.gl/WYMsr. See also “Monticello: Wolf by the ears,” (Thomas Jefferson’s Monticello), http://www.monticello.org /site/jefferson/wolf-ears (accessed Jan. 26, 2012).

4  MCL 38.1301 – 38.1467

5  MCL 38.1 – 38.69

6  MCL 38.2101-38.2670; MCL 38.1601-38.1689; MCL 38.100-38.1080.

7  State Employees’ Retirement Act, MCL 38.1i(3) – 38.1i(4), http://goo.gl/2QRzQ (accessed Feb. 13, 2012).

8  Michigan Legislative Retirement System Act, MCL 38.1018, http://goo.gl/cC3Z1 (accessed Feb. 17, 2012); The Judges Retirement Act Of 1992, MCL 38.2651, http://goo.gl/UCgS9 (accessed Feb. 17, 2012).

9  “State of Michigan 401(K) and 457 Plans,” (State of Michigan), 2, http://goo.gl/ygsyU (accessed Feb. 17, 2011).

10  Richard C. Dreyfuss, “Michigan’s Public-Employee Retirement Benefits: Benchmarking and Managing Benefits and Costs,” (Mackinac Center for Public Policy, Oct. 25, 2010), 4, http://www.mackinac.org/archives/2010/S2010-05.pdf (accessed March 28, 2011).

11  “Employer Contribution Rate,” (Michigan Office of Retirement Services, 2012), http://goo.gl/xDLlk (accessed March 4, 2012).

12  “Michigan Public School Employees’ Retirement System 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), A-1.

13  Mich Const 1963, Article 9, Section 24: http://goo.gl/eqXKV (accessed Jan. 23, 2012).

14  Studier v Michigan Public School Employees’ Retirement Board, 472 Mich 642 (2005).

15 Shelby Twp. Police and Fire Retirement Board v. Charter Twp. of Shelby, 438 Mich 247 (1991).

16 MCL 38.1326

17 Musselman v. Governor, 448 Mich 503 (1995), and on rehearing, 450 Mich 574 (1996).

18 “Michigan Public School Employees’ Retirement System 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), A-1.

19 Mich Const 1963, Article 9, Section 24: http://goo.gl/eqXKV (accessed Jan. 31, 2012).

20 Kathryn Summers-Coty, “Examining a Change from Defined Benefit to Defined Contribution for the Michigan Public School Employees’ Retirement System,” (Michigan Senate Fiscal Agency, 2009), http://goo.gl/jnzaB (accessed May 8, 2010); Bethany Wicksall, “Converting MPSERS from a Defined Benefit (DB) to a Defined Contribution (DC) System,” (Michigan House Fiscal Agency, 2009), http://www.house.mi.gov/hfa/PDFs/MPSERS.pdf (accessed Feb. 17, 2012).

21  “The Cost of Converting the Michigan Public School Employees Retirement System to a Defined Contribution Plan,” (Michigan Office of Retirement Services).

22 Summers-Coty, “Examining a Change from Defined Benefit to Defined Contribution for the Michigan Public School Employees’ Retirement System,” (Michigan Senate Fiscal Agency, 2009), 3, http://goo.gl/jnzaB (accessed May 8, 2010).

23 Ibid, 4.

24 Ibid.

25 “House Passes Retirement Package Amid Partisan Tension,” Gongwer News Service Michigan Report, Dec. 5, 1996.

26 “Michigan Public School Employees’ Retirement System 2008 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2009), A-1; “Michigan Public School Employees’ Retirement System 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), A-1.

27 “The Cost of Converting the Michigan Public School Employees Retirement System to a Defined Contribution Plan,” (Michigan Office of Retirement Services).

28 Ibid., 2.

29 Author’s calculations based on “The Cost of Converting the Michigan Public School Employees Retirement System to a Defined Contribution Plan,” (Michigan Office of Retirement Services) and Kathryn Summers-Coty, “Examining a Change from Defined Benefit to Defined Contribution for the Michigan Public School Employees’ Retirement System,” (Michigan Senate Fiscal Agency, 2009), 4, http://goo.gl/jnzaB (accessed May 8, 2010).

30 “The Cost of Converting the Michigan Public School Employees Retirement System to a Defined Contribution Plan,” (Michigan Office of Retirement Services), 2-3.

31 Author’s calculations based on “The Cost of Converting the Michigan Public School Employees Retirement System to a Defined Contribution Plan,” (Michigan Office of Retirement Services) and Kathryn Summers-Coty, “Examining a Change from Defined Benefit to Defined Contribution for the Michigan Public School Employees’ Retirement System,” (Michigan Senate Fiscal Agency, 2009), 4, http://goo.gl/jnzaB (accessed May 8, 2010).

32 “The Cost of Converting the Michigan Public School Employees Retirement System to a Defined Contribution Plan,” (Michigan Office of Retirement Services), 2.

33 Author’s calculations based on “The Cost of Converting the Michigan Public School Employees Retirement System to a Defined Contribution Plan,” (Michigan Office of Retirement Services), 2, and Kathryn Summers-Coty, “Examining a Change from Defined Benefit to Defined Contribution for the Michigan Public School Employees’ Retirement System,” (Michigan Senate Fiscal Agency, 2009), 4, http://goo.gl/jnzaB (accessed May 8, 2010).

34 Kathryn Summers-Coty, “Examining a Change from Defined Benefit to Defined Contribution for the Michigan Public School Employees’ Retirement System,” (Michigan Senate Fiscal Agency, 2009), 5, http://goo.gl/jnzaB (accessed May 8, 2010); “The Cost of Converting the Michigan Public School Employees Retirement System to a Defined Contribution Plan,” (Michigan Office of Retirement Services), 3.

35 “Accounting and Financial Reporting for Pensions; an amendment of GASB Statement No. 27,” (Governmental Accounting Standards Board, 2011), 98, http://goo.gl/PkvUJ (accessed Sept. 23, 2011).

36 Author’s estimate based on “Michigan Public School Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2001,” (Michigan Office of Retirement Services, 2001), 42, http://goo.gl/RvEJ1 (accessed Feb. 15, 2012); “Michigan Public School Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2011,” (Michigan Office of Retirement Services, 2011), 59, http://goo.gl/hyUcr (accessed Feb. 15, 2012); “Michigan Public School Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 1998,” (Michigan Office of Retirement Services, 1998), 38, http://goo.gl/Vo8qn (accessed March 5, 2012).

37 “Michigan Public School Employees’ Retirement System 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), A-1.

38 Ibid.

39 The State School Aid Act, Public Act No. 62, (June 21, 2011), Sec. 147b, http://goo.gl/XU62S (accessed Feb. 1, 2012).

40 “Michigan Public School Employees’ Retiree Health Benefits 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), C-1, (accessed Aug. 2, 2011).

41 Ibid.

42 “Michigan Public School Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2010,” (Michigan Office of Retirement Services, 2010), 31, http://goo.gl/CZivR (accessed June 14, 2010).

43 “Michigan Public School Employees’ Retiree Health Benefits 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), A-2, (accessed Aug. 2, 2011).

44 “Michigan Public School Employees’ Retirement System 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), A-1.

45 Author’s calculations based on “Michigan Public School Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2011,” (Michigan Office of Retirement Services, 2011), 23, http://goo.gl/hyUcr (accessed Feb. 15, 2012).

46 Richard C. Dreyfuss, “Michigan’s Public-Employee Retirement Benefits: Benchmarking and Managing Benefits and Costs,” (Mackinac Center for Public Policy, Oct. 25, 2010), 12, http://www.mackinac.org/archives/2010/S2010-05.pdf (accessed March 28, 2011).

47 “Michigan State Employees’ Retiree Health Benefits 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), C-1; “Michigan State Employees’ Retirement System 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), F-1.

48 “Employer Contribution Rate,” (Michigan Office of Retirement Services, 2012), http://goo.gl/xDLlk (accessed March 4, 2012).

49 Ronald W. Foss, “All Reporting Unit Business and Payroll Personnel of the Michigan Public School Employees Retirement System,” (Department of Technology, Management & Budget, 2011), http://goo.gl/H4n52 (accessed Jan. 23, 2012).

50 “Michigan Public School Employees’ Retirement System 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), A-1.

51 MCL 38.1343a(8).

52 Governmental Accounting Standards Board, “Statement No. 27 of the Governmental Accounting Standards Board,” Journal of Accountancy 180, no. 1 (1995): 130.

53 “Michigan Public School Employees’ Retirement System 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), A-1.

54 Ibid., D-4.

55 Matthew Grabowski, “Are Public Sector Retirement Benefits Sustainable? An Update on the State-Administered Retirement Systems,” (Michigan Senate Fiscal Agency, 2011), 3, http://goo.gl/x9P9f (accessed Feb. 16, 2012).

56 Kyle I. Jen and Bethany Wicksall, “State Employee Retiree Health Benefit Prefunding,” (Michigan House Fiscal Agency, 2011), http://goo.gl/YdBe6 (accessed Sept. 26, 2011).

57 “Public Act 75 of 2010,”), Sec. 41 (11), http://www.legislature.mi.gov/documents/2009-2010/publicact/pdf/2010-PA-0075.pdf (accessed Aug. 3, 2010).

58 Kirk Sanderson, “H.B. 4530: Floor Analysis,” (Michigan Senate Fiscal Agency, 2007), http://goo.gl/MSw7A (accessed Aug. 12, 2011).

59 Author’s calculations based on “Michigan Public School Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2000,” (Michigan Office of Retirement Services, 2000), 31, http://goo.gl/LzHpV (accessed Feb. 15, 2012); “Michigan State Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2000,” (Michigan Office of Retirement Services, 2000), 29, http://goo.gl/xljq1 (accessed April 20, 2011); “Michigan Public School Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2010,” (Michigan Office of Retirement Services, 2010), 46, http://goo.gl/CZivR (accessed June 14, 2010); “Michigan State Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2010,” (Michigan Office of Retirement Services, 2010), 42, http://goo.gl/1U8oA (accessed March 17, 2011).

60 “Michigan Public School Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2007,” (Michigan Office of Retirement Services, 2007), 35, http://goo.gl/QFNZx (accessed Sept. 26, 2011).

61 Andrew Biggs, e-mail correspondence with James Hohman, July 27, 2011.

62 Kathryn Summers, “H.B. 4701 (S-1) & 4702: Concurrence Summary,” (Michigan Senate Fiscal Agency, 2011), 5, http://goo.gl/v1kvS (accessed Feb. 14, 2012).

63 Utah State Sen. Dan Liljenquist, telephone conversation correspondence with James Hohman, Sept. 13, 2011.

64 Wicksall, “A Summary of House Bills 4701 and 4702 as Enacted,” (Michigan House Fiscal Agency, 2011), 9, http://goo.gl/siUab (accessed March 4, 2012).

65 “Michigan Public School Employees’ Retirement System 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), A-1.

66 Ibid.

67 Vishal Apte and Brendan McFarland, “A Look at Defined Contribution Match Reinstatements,”(Towers Watson, 2011), http://www.towerswatson.com/assets/pdf/5641/Oct11DCMatch.pdf (accessed Jan. 25, 2012).

68 “Contribution limits for retirement accounts,” (The Vanguard Group, Inc., 2011), http://vanguard.com/us/insights /taxcenter/contribution-limits?WT.srch=1 (accessed Sept. 23, 2011).

69 “2009-10 Bulletin 1014,” (Michigan Department of Education, 2011), (v), http://goo.gl/RnGsv (accessed Sep. 9, 2011).

70 “Michigan State Employees’ Retirement System 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), F-2.

71 Ibid., A-1.

72 Author’s estimate based on “Michigan Public School Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2001,” (Michigan Office of Retirement Services, 2001), 42, http://goo.gl/RvEJ1 (accessed Feb. 15, 2012); “Michigan Public School Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2011,” (Michigan Office of Retirement Services, 2011), 59, http://goo.gl/hyUcr (accessed Feb. 15, 2012); “Michigan Public School Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 1998,” (Michigan Office of Retirement Services, 1998), 38, http://goo.gl/Vo8qn (accessed March 5, 2012).

73 Author’s calculations based on Dreyfuss, “Estimated Savings From Michigan’s 1997 State Employees Pension Plan Reform,”(Mackinac Center for Public Policy, 2011), 6, http://www.mackinac.org/archives /2011/2011-03PensionFINALweb.pdf (accessed Feb. 16, 2012).