Pension systems across Michigan are facing a crisis that threatens workers, retirees, businesses, taxpayers and residents who rely on public services. For decades, state legislators and governors, Republican and Democrat, have promised billions more in pensions than has been saved to pay for them.
Government administrators across the state accidentally made their own employees their largest creditors.
Only five of the largest municipalities in Michigan fully fund their pension system, with the average city funded at only
The costs to make up the difference between what has been earned and what has been saved strains municipal finance, pressures managers to increase taxes and leaves fewer resources for quality government services.
Shift new public employees to a 401(k)-style, defined contribution plan as was done for state employees in 1997.
Begin paying down the balances owed to current pension plans to ensure no future emergency bailouts are required.
Honor all pensions that have been promised to existing workers
We need to protect our retirees and the promises we have made to current workers.
