The contribution rate that employers pay to the Michigan Public School Retirement System (MPSERS) will have a very modest increase for the 2009-10 school year. Effective October 1, 2009 employers will pay 16.94% on employees' wages into MPSERS. This is a .4% increase from the 2008-09 rate and is way below the projection of many Superintendents and school Business Officials.
Based on a 2004 study by the Citizens Research Council of Michigan that projected the 2008 contribution rate would surpass 20% of payroll Superintendents have been projecting that retirement costs will have a negative impact on future budgets. The modest increase for 2009-10 disproves that myth.
Mr. Scott Crosby, Superintendent of Wexford-Missaukeee ISD, stated in the Cadillac News he supports legislation that would require school employees share equally any increase in the retirement rate. In other words many employees could realize a pay decrease!
Please voice your view on Mr. Crosby's proposals by leaving a comment on this Blog.