Education A State Capitals Roundup

Costs for Retirees to Rise, Michigan Report Cautions

By David J. Hoff — October 26, 2004 1 min read
  • Save to favorites
  • Print

Michigan school districts will need to dramatically increase their payments for retirees’ benefits over the next decade, a report suggests.

To keep up with demand by fiscal 2008, districts will need to pay at least 20 percent of their total payrolls into funds that provide pensions and health benefits to retired teachers, according to the Citizens Research Council of Michigan. The share will rise to 30 percent of payroll in the following 10 years, the Lansing-based nonprofit group said.

Districts now pay 15 percent of payroll to cover the pension and health-insurance costs of their retirees.

“The outlook is decidedly gloomy,” Tom Clay, the group’s director of state affairs, said in a statement.

The retirement system is struggling because health-care costs are rising, and the pension fund has had a poor rate of return in recent years, the research council said.

Events

School & District Management Webinar Crafting Outcomes-Based Contracts That Work for Everyone
Discover the power of outcomes-based contracts and how they can drive student achievement.
School & District Management Webinar EdMarketer Quick Hit: What’s Trending among K-12 Leaders?
What issues are keeping K-12 leaders up at night? Join us for EdMarketer Quick Hit: What’s Trending among K-12 Leaders?
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Artificial Intelligence Webinar
Teaching Students to Use Artificial Intelligence Ethically
Ready to embrace AI in your classroom? Join our master class to learn how to use AI as a tool for learning, not a replacement.
Content provided by Solution Tree

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Briefly Stated: October 23, 2024
Here's a look at some recent Education Week articles you may have missed.
9 min read
Education Briefly Stated: October 2, 2024
Here's a look at some recent Education Week articles you may have missed.
8 min read
Education Briefly Stated: September 18, 2024
Here's a look at some recent Education Week articles you may have missed.
9 min read
Education Briefly Stated: August 28, 2024
Here's a look at some recent Education Week articles you may have missed.
9 min read