By Katherine Mangu-Ward, Reason
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.