The MARSP Legislative Committee recently took action on the following legislation:
MARSP opposes SB 102, which would close out the MPSERS defined benefit plan to new hires, with the following rationale:
This bill would amend MPSERS Act to require that public school employees hired after July 1, 2015 no longer have a choice between a Defined Benefit and Defined Contribution plan. They will only have the option of a Defined Contribution plan. MARSP opposes this bill as MARSP opposes any legislation that removes members from paying into the MPSERS system. In addition, MARSP opposes this bill as it would also force school personnel to become financial managers of their own retirement accounts. Most school employees are not trained financial managers and will not be able to equitably fund their retirement in a defined contribution plan alone, due to excessive administrative costs and loss of value from the pooling of assets in a defined benefit plan. This legislation would also negatively impact the interest of those who would choose a career in the education field.
MARSP supports the May ballot proposal to increase the state sales tax from 6 to 7 percent and provide additional funding for schools and local municipalities with the following rationale:
The May ballot proposal not only provides needed road funding, which benefits our members as a whole, but also provides approximately $300 million in additional funding for schools. This will positively impact our members by strengthening the Retirement System by freeing up revenue to reduce the unfunded liability and providing additional per pupil funding.
Also, with the current legislative climate in mind, please keep an eye on the MARSP website for important breaking legislative updates should any of the bills we are watching begin to move through the legislature.
A new study from the National Institute on Retirement Security (NIRS) finds that pensions can provide the same retirement income as a 401(k)-type plans at half the cost.