States on the move: 401(k)-style pension reform in Michigan

By Benjamin VanMetre
Michigan was a trailblazer when it comes to 401(k)-style reform plans for government workers. In 1997, Michigan froze the state employees’ defined-benefit pension plan and created a self-managed 401(k)-style retirement plan for new state workers. It was the first state in the nation to enact bold reforms like these. Michigan state employees who started working...

TAGS: 401(k), Michigan, pensions

Teachers begin exodus from unions in Michigan

By Paul Kersey
After a year-long campaign by the nonpartisan Mackinac Center and other groups to inform Michigan’s teachers of their right to leave their union, around 5,000 teachers have decided to do so. But more than 100,000 teachers in the state remain under union control. And the Michigan Education Association, or MEA, is claiming victory for managing...

TAGS: labor, Michigan, unions

Detroit’s city pensioners vote to cut their own pensions

It’s ironic that Detroit government workers and pensioners, on the one-year anniversary of the Motor City’s bankruptcy, have voted to cut their own pensions. Their vote is part of a “grand bargain” bankruptcy restructuring that seeks private, philanthropic and state funds to help avoid massive cuts in government pensions. The bargain reduces Detroit’s debt by...

TAGS: bankruptcy, Chicago, Detroit, Michigan