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Poll: Teacher Retirement Contribution

Republican leaders dropped a proposed requirement Friday that public school employees reach the age of 60 before getting retiree health care coverage, easing fears that had caused an unusually high number of teachers to consider retiring next month.

Senate Bill 1040 still would require most school employees to put more than 10 percent of their paychecks toward retirement costs next school year, a move teachers oppose. But the GOP leaders decided the age limit for retiree health care would have hurt teachers who already have retired or are near retirement and planned to get coverage.

The changes, which also include a requirement that most teachers pay up to eight percent of their salary toward their annual pension, are aimed at patching a growing shortfall in the Michigan Public Schools' Retirement System. Retiree health care benefits make up the bulk of the $45 million in unfunded school employee liabilities.

The legislation's supporters say a quarter of school districts' payroll costs currently are needed to cover pension costs, an amount that will climb three percentage points next school year if nothing is done.

Many current and retired teachers say the proposed changes are unfair, especially because teachers' contributions to pensions increased in 2007, and because they'll have to pay state income taxes on their pensions under legislation passed last year.

The Coalition for Secure Retirement-Michigan has said the state constitution guarantees the state has to live up to pension promises, and a lawsuit challenging the changes is likely if the measure passes.

Tonight in the Daily Pulse we're wondering: Should school employees be required to put eight percent of their paychecks toward their pension fund? Yes or no? Why or why not?