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.
Please view the “Local Chapter Directory“ to access specific local chapter information including area conference meeting details and contact information regarding reservations.
|Allegan||4/16/2015||12:00 PM||Allegan County Area Technical and Education Center|
|Baraga||5/12/2015||11:30 AM||Baraga Lakeside Inn|
|Bay Area||5/11/2015||11:00 AM||Lumber Baron’s|
|Berrien||4/14/2015||11:00 AM||Pebblewood Golf Course|
|Blue Water||5/13/2015||9:30 AM||St. Clair County RESA|
|Branch||3/10/2015||11:55 AM||United Methodist Church|
|Calhoun||4/13/2015||12:00 PM||St Paul’s Lutheran Church|
|Cass||4/14/2015||9:00 AM||Cass County Council on Aging|
|Chippewa-Mackinac||5/20/2015||11:00 AM||Lake Superior State University’s Cisler Center|
|Clinton||4/13/2015||5:00 PM||Clinton County RESA|
|Crawford-Oscoda||5/20/2015||12:00 PM||Mio United Methodist Church|
|Delta||5/4/2015||12:00 PM||Memorial United Methodist Church, Gladstone|
|Dickinson||5/21/2015||10:30 AM||Pine Grove Country Club|
|Emmet||5/28/2015||9:00 AM||Bay View Inn|
|Genesee||5/14/2015||10:00 AM||Flint Area School Employees Credit Union|
|Genesee – West||5/5/2015|
|Genesee-Southeast||5/13/2015||10:00 AM||Atlas Valley Country Club|
|Grand Traverse||5/12/2015||12:30 PM||West Bay Beach Resort Holiday Inn|
|Hillsdale County||3/12/2015||12:00 PM||Hillsdale County ISD|
|Huron||4/24/2015||11:00 AM||Huron Area Tech Center|
|Ingham – Greater Lansing||4/16/2015|
|Ionia||4/16/2015||11:30 AM||Ionia County Community Mental Health|
|Iosco-Alcona||5/21/2015||10:30 AM||IRESA Educational Center|
|Iron||5/13/2015||11:00 AM||Fortune Lake Lutheran Camp|
|Isabella||5/5/2015||12:00 PM||Commission on Aging|
|Jackson||4/21/2015||11:30 AM||First United Methodist Church|
|Kalamazoo||4/7/2015||11:30 AM||Fetzer Center|
|Kent||4/20/2015||10:00 AM||St Andrew’s Episcopal Church|
|Lapeer||4/20/2015||12:00 PM||Lapeer County Center Building|
|Leelanau||5/20/2015||12:00 PM||The Bluebird Restaurant and Bar|
|Livingston||5/21/2015||11:15 AM||Howell Parks and Recreation|
|Macomb East||4/30/2015||8:30 AM||Macomb ISD|
|Macomb North||4/30/2015||9:00 AM||Macomb ISD|
|Manistee||5/11/2015||11:30 AM||Bungalow Inn|
|Manistee||5/11/2015||11:30 AM||Bungalow Inn|
|Marquette||5/6/2015||12:00 PM||Negaunee Senior Center|
|Mason Lake||4/16/2015||9:30 AM||Ludington Methodist Church|
|Mecosta-Canadian Lakes||5/28/2015||10:00 AM||Alpine Haus|
|Midland||4/8/2015||12:00 PM||Midland Community Center|
|Monroe||5/21/2014||11:30 AM||Monroe County Community College|
|Monroe South||5/21/2014||11:30 AM||Monroe County Community College|
|Montcalm||5/13/2015||12:00 PM||Winter Inn|
|Muskegon||5/5/2015||Sons of Norway Hall|
|Newaygo||5/12/2015||12:00 PM||First Methodist church|
|Oakland – Farmington||5/12/2015|
|Oakland – North||5/12/2015||9:00 AM||St. George Cultural Center|
|Oakland – Suburban||5/12/2015||9:00 AM||St. George Cultural Center|
|Oceana||5/18/2015||Hart United Methodist Church|
|Ogemaw||5/1/2015||11:00 AM||Lumber Jack Restaurant|
|Osceola||5/5/2015||10:00 AM||St. Paul Lutheran Church|
|Presque Isle||5/18/2015||10:00 AM||Onaway Methodist Church|
|Saginaw||5/20/2015||1:00 PM||Hellenic Center|
|Sanilac||5/20/2015||12:00 PM||Liberty Lanes Bowling Alley & Restaurant|
|Shiawassee||5/11/2015||1:00 PM||St. Paul’s Episcopal Church|
|St. Joseph||5/11/2015||12:00 PM||St. Joe Co ISD|
|Tuscola County||4/15/2015||11:00 AM||The Brentwood|
|Van Buren||4/14/2015||9:00 AM||Cass County Council on Aging|
|Washtenaw||5/13/2015||11:00 AM||Weber’s Inn|
|Wayne – Detroit||4/10/2015|
|Wayne – Downriver||3/16/2015||12:00 PM||Orlando’s in Riverview|
|Wayne – Metro||5/21/2015||10:00 AM||Dearborn Hills Golf Course|
|Wayne – Northwest||4/8/2015||11:00 AM||St. Mary’s Cultural Center|
|Wexford-Missaukee||5/21/2015||9:30 AM||Wexford-Missaukee Career Tech|
|AZ – Tucson/Green Valley Chapter||3/2/2015||9:00 AM||Hilton Garden Inn – Airport|
|CO – Colorado||5/7/2015|
|FL – Char-Sota||3/10/2015||9:30 AM||Olde World Restaurant|
|FL – Greater Daytona||3/19/2015||Red Lobster in Daytona|
|FL – Heartland||3/10/2015||10:30 AM||Avon Park Public Library|
|FL- Lee County||3/17/2015|
|FL – Southwest Gulf Coast||3/19/2015||11:30 AM||North Naples United Methodist Church|
|FL – Space Coast||3/5/2015|
|FL – St. Petersburg||3/9/2015||11:30 AM||Unity Church of Palm Harbor|
|FL – Suncoast||3/26/2015|
|FL – Treasure Coast||3/9/2015||11:30 AM||Maneros|
|TN – East Tennessee||5/6/2015||9:00 AM|
|TX – Dallas/Fort Worth||4/12/2015||2:30 PM||Phyllis Burton-Jenkin’s home|
The MARSP website is now available for online joins and renewals. If you are renewing, you will need to log in to your account to access your renewal information. The username login refers to your email address and the password must be entered in ALL CAPS. The default password is the first letter of your first name and your entire last name (e.g. JSMITH) in ALL CAPS. You may also use the “Lost Password” feature to retrieve your password.
Please note: If you are a lifetime member of the state MARSP organization and need to renew only your chapter dues, you will need to call the MARSP office at 517-337-1757.
Thank you for your support of MARSP as we work to maintain and improve benefits for all Michigan public school retirees.
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The structural cost advantages of defined benefit plans over defined contribution plans has not changed in recent years, despite DC enhancements, said a research report released Thursday by the National Institute on Retirement Security.
The report revisits 2008 NIRS research that found a typical large defined benefit plan provides the same level of retirement benefit at half the cost of a defined contribution plan. In the 2014 report, “Still a Better Bang for the Buck: An Update on the Economic Efficiencies of Defined Benefit Pensions,” a typical DB plan has a 48% cost advantage over DC for an identical level of benefit, despite DC enhancements like target-date funds and annuities.
The three structural cost advantages of DB plans are longevity risk pooling; well-diversified, long-term portfolios; and low-fee professional investment management, according to NIRS researchers, who found a 100-basis-point differential in DC returns due to higher expenses and reduced investing skill among participants.
“What doesn’t get talked about is the participant drag aspect on all this,” said NIRS Executive Director Diane Oakley. For employers considering shifting to DC from DB, “the bottom line is that people will have significantly lower benefits, if you want to keep the cost the same,” Ms. Oakley said in an interview.
For the 2014 report, NIRS used new mortality tables with longer life expectancies, and used a more conservative assumption of when participants would run out of money.
Click here to access the full article with charts.
— Contact Hazel Bradford at email@example.com | @Bradford_PI
Click here to view the changes in the MPSERS health care plans for 2015 in the November/December VANGUARD.