tag:blogger.com,1999:blog-2790809561264810693.post2640246204811967682..comments2023-11-07T06:56:59.563-05:00Comments on Ann Arbor Schools Musings: Privatization, Take II: The Bids Are InRuthhttp://www.blogger.com/profile/10531344380743742801noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2790809561264810693.post-14267617502533190192010-02-24T07:43:29.336-05:002010-02-24T07:43:29.336-05:00At some point someone gets to draw the short stick...At some point someone gets to draw the short stick on this. Taking pensions away can be made legal or illegal, and my guess is that the MEA will follow the UAW position, asking for big buyout packages for union members and a second tier status for incoming new members. Unluckily, there isn't money for a buy out package, and doesn't look like there will be. The district administrators can go about to just laying off people and letting the chips fall where they may, especially if unions don't get the buyouts for their members, The administration may be forced to if the union is really stubborn, or there may be a strike and really let this turn this into a crisis...<br />In so many ways, it goes back to how the union decides to handle it. And union exist, by definition for their owns self benefit.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2790809561264810693.post-30224789899055412262010-02-24T01:02:28.195-05:002010-02-24T01:02:28.195-05:00Ruth, thanks for the link, and I'm glad you fo...Ruth, thanks for the link, and I'm glad you found my comment helpful.<br /><br />As to the state pension system: there are no easy answers. The legislature made changes in the vesting and contribution rules for new employees in 2007 (the price for supporting a temporary increase in the income tax), but it will take years before the savings materialize. In her executive budget, Gov. Granholm proposes a more significant change to MPSERS, including a hybrid defined contribution and defined benefit system, but that requires significantly HIGHER contributions in the short run. Under that proposal, the districts' share would jump to 20% and employees would have to kick in a further 3%.<br /><br />That's the problem with most potential answers to the pension dilemma - moving to defined contributions means that current employees will contribute to their own accounts. But in the current system, a large share of contributions go right out the back door to pay for current retiree benefits. If employees start paying into individual accounts, we have to find the money somewhere to cover benefits for current retirees. Just taking their pensions away would be plain wrong and probably illegal.<br /><br />And, as they pointed out at the BoE study session, the proposal to increase employee contributions to MPSERS will give all school employees an immediate 3% pay cut but won't save the district a dime. This makes asking for more wage concessions in addition that much more difficult.Steven Nortonhttp://mipfs.orgnoreply@blogger.comtag:blogger.com,1999:blog-2790809561264810693.post-33724909800758011162010-02-18T11:20:15.921-05:002010-02-18T11:20:15.921-05:00If the board could do the same to teachers it woul...If the board could do the same to teachers it would, because it is choking on the weight of MPSERS. It picked an easy union to dissolve, unfortunately.<br />Ultimately, since the state legislators won't undo current mechanism of funding to the pension system, that is what is going to happen to the teachers anyway. And the MEA won't get behind any real reform. Every man, every group for themselves.Anonymousnoreply@blogger.com