The Michigan teachers union is outraged by a bill working its way though the legislature that would require that teachers to pay into their own pension plans. Under SB 1040, teachers would contribute 5-10 percent of their pay toward their pensions. The bill would also require retirees to be 60 before they can receive health benefits.
The tragic result:
Saginaw Township teacher Terry List had hoped to retire in the next three years when she was 47 years old. That wouldn't be possible under SB 1040. List would have to work another 16 years to be eligible for health benefits.
List noted in her testimony to the state's Senate Appropriations Committee that she is pretty expensive. The folks at Michigan's Mackinac Center agree, estimating that she currently earns between $70,000 and $80,000 a year, and will probably earn $90,000 by the time she is 60.
Back to the Michigan Education Association's website, List laments:
"By the time I'm 60, I would have put in 43 years of service, earning a salary at the top of the pay scale. How does that save the district money? You could hire two people for the cost of one and encourage young people to join the profession.
Err. Not exactly. List can expect to take home about $60,000 a year in retirement, with annual adjustments upward after that—while no longer providing any services to the state.
Via the very useful David Hogberg.