State Still Underfunding Teacher Pensions

Capitol Confidential ^ | 2/17/2014 | James Hohman

[MichCapCon]

Michigan's school employee pension system is underfunded by $23 billion and to return it to full funding, it is necessary to continue to pay the system's annual required contribution.

The annual required contribution is the amount necessary to pay for the pensions that employees earn and to catch up on unfunded liabilities under the state's assumptions. The state has not been paying the full amounts.

The annual required contribution last fiscal year was $1.9 billion, but the state put in only $1.4 billion.

This has been a long-term problem. The state only paid its full contribution in two of the past 10 years.

This is one reason why the state should convert to a defined contribution retirement system, where it becomes clear whether the state is fully funding the retirement benefits offered to employees.

[PGalt]

Thanks for posting. HOORAY James Hohman!

Unfunded socialist programs. Who knew? /sarcasm

http://www.usdebtclock.org/state-debt-clocks/state-of-michigan-debt-clock.html

http://www.usdebtclock.org

Legal Plunder Has Many Names

Now, legal plunder can be committed in an infinite number of ways. Thus we have an infinite number of plans for organizing it: tariffs, protection, benefits, subsidies, encouragements, progressive taxation, public schools, guaranteed jobs, guaranteed profits, minimum wages, a right to relief, a right to the tools of labor, free credit, and so on, and so on. All these plans as a whole — with their common aim of legal plunder — constitute socialism.

Socialism Is Legal Plunder - Bastiat

But of what plunder was he speaking? For there are two kinds of plunder: legal and illegal.

I do not think that illegal plunder, such as theft or swindling — which the penal code defines, anticipates, and punishes — can be called socialism. It is not this kind of plunder that systematically threatens the foundations of society. Anyway, the war against this kind of plunder has not waited for the command of these gentlemen. The war against illegal plunder has been fought since the beginning of the world. Long before the Revolution of February 1848 — long before the appearance even of socialism itself — France had provided police, judges, gendarmes, prisons, dungeons, and scaffolds for the purpose of fighting illegal plunder. The law itself conducts this war, and it is my wish and opinion that the law should always maintain this attitude toward plunder.

The Law Defends Plunder

But it does not always do this. Sometimes the law defends plunder and participates in it.

[taildragger]

Tangent to this “Wayne County” home of Detroit and many burbs west of it is in serious financial trouble aka it may go Chapter 11 if they can’t get their act together...

[Organic Panic]

The STATE isn’t funding enough. Correction. The state is not confiscating enough taxes from the paeons to pay for the pensioners. This is up there with the liberal logic that “we don’t have a spending problem, we have a paying for it problem.”