My GHEA Rocks!

LAME DUCK ALERT PENSION ATTACK

THE DEVOS FAMILY AT IT AGAIN — AMWAY BILLIONAIRES PLAN PUBLIC PENSION ATTACK • Amway President Doug DeVos recently announced a plan to move Michigan public employees to a 401(k)-style defined contribution retirement plan. He labeled his proposed elimination of public employees’ defined benefit pension plans as the No. 1 priority of his West Michigan Policy Forum, adding, “It sends a message to all of our elected officials. We take these votes very seriously.” • The DeVos family contributed nearly $1.5 million to Republican legislative candidates in the August primary—which is a down payment on the votes needed to gut school employee and municipal government employee pensions. 

THE PENSION SYSTEM IS NOT BROKEN • Ten years ago, MPSERS was fully funded. Now we have an unfunded liability (which has been improving) as the result of the devastating economic downturn of 2008, combined with decisions made in Lansing to balance the budget with unrealistic projected rates of return. Like any investment, it simply needs time to rebound—and is on track to do so. • Recent changes have dramatically increased employee contributions into MPSERS. • PA 300 of 2012 also placed school employees hired after its effective date into a “hybrid” system, combining elements of a traditional pension and a 401(k)-style defined contribution plan. The savings to the state stemming from this change will not be fully realized for several years. • The hybrid system is fully funded. Why would we eliminate a system that’s working? • The 2012 law also eliminated retirement healthcare benefits for new hires. • The changes made in 2012 need time to continue to work. As with any investment, if left alone the system will heal itself.

PENSIONS PROVIDE IMPORTANT ECONOMIC BENEFITS • Pension income is spent in Michigan and supports more than 77,000 Michigan jobs. • Retirees’ spending from pensions supports $11.1 billion in economic output in Michigan. • 45 percent of public school employees receive a pension of less than $14,500 per year. • Hedge fund managers and other Wall Street corporations are the real winners in eliminating traditional pension plans and moving money to their 401(k)s. • A pension system distributes both the risk and reward evenly—vs. the winners/losers system of the 401(k). We don’t need a competitive system that creates winners at the expense of others; we need retirement security for all. • Numerous studies have shown that, in addition to being much less secure than a traditional pension, any savings to the state for making such a change would not be realized for more than 30 years—and the immediate cost to close MPSERS would run into the hundreds of millions of dollars per year. WHY WOULD A BILLIONAIRE ATTACK PUBLIC EMPLOYEE PENSIONS?

November 14, 2016 Statement from State Superintendent Brian Whiston Since the U.S. Presidential election last week, there have been a number of reported incidents in Michigan schools of students harassing, bullying, intimidating, and using hateful speech toward other students. I realize that certainly at the national level over the past year, we saw the debate go to a new low, and that is impacting the actions, demeanor, and mood in some of our schools. Our schools must be safe havens for our children – free from hate; free from intimidation; free from bullying; and free from fear. We need to cultivate and develop in our students a steadfast respect for all others, inclusive of race, religion, orientation, or social-economic standing. We must not let political rhetoric and actions diminish the positive learning environments we’ve worked so hard to nourish. I ask that educators at all levels, from principals to teachers to parents, help their students understand that bullying and intimidation – in word and action – is unacceptable and will have consequences.