Schools Take Retirement Hit

Schools Take Retirement Hit

Already strapped with higher fuel and heating costs, a former state treasurer is warning Michigan schools to brace for another financial hit next fall.

Doug ROBERTS, who ran the state retirement fund during the John ENGLER years, said the "difficult year" in the stock market means the unfunded liability for retirees will increase and with it the amount of money schools must contribute to the retirement system.

"Starting Oct. 1 of next year, schools are going to pay more into the system", Roberts said, but added that he does not know what percentage increase will be needed to cover loses in the market.

None of this will impact current retirees who have a constitutional guarantee that their monthly checks will remain the same. The impact instead is on new members coming into the system and Roberts wondered out loud, "Where will the additional revenue come from?"

The schools and the Legislature will have to find the answer to that.

(Contributed by Senior Capital Correspondent Tim SKUBICK.)
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