retirement

In this morning's Michigan news headlines. . .

Emily Fox — Mon, 22 Oct 2012 10:58:01 +0000

Snyder holds town hall meeting on Prop 6 today

"Governor Snyder will hold a town hall meeting with members of the Canada-United States Business Association in Detroit today. He’ll be stressing the need for a new Detroit-Windsor bridge—and for voters to reject Proposal 6. Proposal 6 would require voter approval for any new international bridges or tunnels for motor vehicles,” Sarah Cwiek reports.

Voters in West Michigan can learn more about Prop 3 this week

"People living in West Michigan will have two opportunities early this week to learn about and discuss the so-called 25 by 25 ballot proposal. If voters pass Proposal 3, utility companies in Michigan would have to get 25-percent of their energy from renewable sources like wind and solar. There’s a panel discussion tonight with people for and against Proposal 3. It’s at the Michigan Alternative and Renewable Energy Center in Muskegon. Tomorrow morning in Grand Rapids the President of the Union of Concerned Scientists will travel from Massachusetts to join west Michigan business leaders in favor of Proposal 3," Lindsey Smith reports.

Some Michigan lawmakers looking to increase retirement age for public school employees

"Michigan lawmakers are looking at a plan that would increase the minimum retirement age for public school employees. The current retirement age is 60. But some people want to index the retirement age according to life expectancy, which would be determined every year. Mark Guastella is with the Michigan Association of Retired School Personnel. He says the system paid more than $700 million in benefits last year to people who outlived their life expectancy," Rina Miller reports.

State employees call court ruling a 'victory'

Jake Neher — Fri, 28 Sep 2012 19:52:39 +0000

Thousands of state employees are applauding a judge’s ruling that they shouldn't be forced to pay for their pension benefits.

An Ingham County Circuit Court judge said today that a rule requiring state employees cough up four-percent of their salaries to keep their pensions is unconstitutional.

She said it’s effectively a pay cut, something only the Michigan Civil Service Commission has the authority to enact.

Ray Holman is with UAW Local 6000, the largest state employee union in Michigan.

Retirement changes signed into law today for Michigan's teachers

Rick Pluta — Tue, 04 Sep 2012 10:46:31 +0000

Governor Rick Snyder will sign legislation into law Tuesday that will make some changes to how teachers and other school employees save for their retirement.

School employees will have to pay more for their benefits, and those hired after today will no longer get retirement health coverage.

Instead, they will get savings accounts to help them buy insurance once they are done working.

Governor Snyder said he understands that many school employees are upset.

“We had to make some reforms to make it fiscally viable and financially sound f or their future, too, in terms of their retirement benefits," said Snyder. "So, it’s a case of us all working together, and sometimes change is tough on people and I appreciate that. We’re just trying to make it something that lasts for the long term for the benefit of all."

Snyder said the new approach will begin to retire a long-term pension liability estimated in the billions of dollars.

He said it will also shore up the state’s credit rating, and ensure taxpayers won’t be saddled with the costs of a bailout years down the road.

Teachers unions say the plan breaks promises made to school employees, and went to court on Friday with a legal challenge.

'Snowbirds' getting the attention of Republicans in Michigan and Florida

Steve Carmody — Mon, 27 Aug 2012 05:01:01 +0000

Retirees are expected to play a pivotal role in this fall’s election.

Republican Party leaders in Michigan and Florida are particularly interested in one unique set of voters - the so-called Snowbirds.

Snowbird is the term used for northern retirees who spend the winters in Florida.

Michigan Court: Teachers deduction for retiree health care unconstitutional

The Associated Press — Fri, 17 Aug 2012 14:48:50 +0000

LANSING, Mich. (AP) - The Michigan Court of Appeals has ruled unconstitutional a state law forcing school employees to pay 3 percent of their salary toward retiree health care.

A copy of Thursday's 2-1 ruling was released Friday.

The contribution was put into place in 2010, and unions representing teachers filed suit. In 2011, retired Ingham County Circuit Judge James Giddings, who was hearing the case before he stepped down and returned to finish the job, ruled that school employees were paying into a system that may not ultimately benefit them.

The contribution was instituted as part of an effort to save hundreds of millions of dollars for the state. MLive.com reports some unions want the money to be refunded.

Federal court reinstates lawsuit over Flagstar stock

The Associated Press — Tue, 24 Jul 2012 16:39:29 +0000

Some current and former employees will get another chance to pursue a lawsuit against Flagstar Bank over company stock in their retirement accounts.

A federal appeals court has reinstated the case in Detroit federal court. The Troy-based bank is blamed for offering Flagstar stock to employees at a time when the bank was in perilous shape.

Flagstar's stock price lately has been under a dollar, compared with nearly $15 in 2007. The court says the lawsuit raises a "plausible claim" that Flagstar breached its fiduciary duty to employees during that time.

The bank has said workers made their own investment decisions.

Flagstar recently announced its first profitable quarter since 2008. It has 111 branches in Michigan.

Deadline day for GM retirees pension buyout offer

Tracy Samilton — Fri, 20 Jul 2012 14:40:03 +0000

Today is the deadline for more than 40,000 General Motors retirees to accept their former employer's offer of a lump sum buyout of their pensions.

Otherwise, their pensions will be taken over by Prudential Insurance.

GM's Randy Arrix said the change is part of the company's efforts to create what it calls a "fortress balance sheet." Getting underfunded pensions off the books strengthens the balance sheet.

"Pension obligations are very volatile, and they're volatile because they're dependent on some things within our control like contributions, and other things that are not, said Arrix.

Some GM retirees are angry about the change, which they see as a broken promise by GM, but for others, the buyout is an opportunity to control their own money.

Retirees await details of Ford’s offer to pay pensions in lump sum

Lindsey Smith — Wed, 16 May 2012 11:30:00 +0000

90,000 white collar Ford retirees will soon have a big decision to make. Should they stay in the auto company’s pension plan? Or take their chances with a lump sum payout instead?

The offer Ford Motor Company announced in late April is believed to be the first of its kind for such a large ongoing pension fund.

Lump sum the buzz at Ford retirement clubs

In Michigan there are more than 30 clubs for Ford retirees. The lump sum option is the conversation at retiree club meetings right now.

“Retirees are going to have to make a decision about mortality, about death; their own. That’s not something we do every day,” Ford retiree Charles White said. White worked at the Dearborn campus for 29 years in engineering management. He retired in 1996.

Teacher retirement fund needs help

Jennifer White and Mercedes Mejia — Wed, 02 May 2012 21:59:29 +0000

There’s an ongoing debate about how to sustainably fund the Michigan Public School Employee Retirement System.

According the Bridge Magazine, an online publication of the Center for Michigan, the retirement system is underfunded by $45 billion.

Bridge Magazine staff writer, Nancy Derringer, has taken an in-depth look at this issue.

Derringer notes that Senate bill 1040 would change the way the retirement system is funded. "If you are a new employee your contribution to the retire system would increase to 8%. And they currently pay 3 and 6.2 % of their salary. And then if you are a retiree you currently have your health care premiums 90% paid by the state and you pay 10%, that would switch to 80/20."

It's tax season, let's talk about money and your future

Wed, 11 Apr 2012 18:48:32 +0000

Michigan Radio and Changing Gears are collecting stories about how people are planning ahead in a tough economy, and we’d like your help. What’s on your mind as you plan for what comes next?

Two seniors reconnect after 50 years, getting married today

Kyle Norris — Tue, 14 Feb 2012 12:00:11 +0000

Romantic love, crazy love, puppy love -- there are all kinds of loves. But there's another kind of love some people experience, and that's love late in their lives.

That's what happened with 70-year-old Judith Narrol and 71-year-old Ed Storement.

They grew up in the same neighborhood in Salem, Ill., but went on to marry different people and raise separate families.

The two have recently reconnected 56 years later.

"He was the guy who sat on my stoop," says Judith, who explains that the couple's religious differences — she is Jewish and he is a Southern Baptist — caused their families to forbid their courtship.

More than 70% of eligible Kalamazoo City workers already signed up for early retirement

Lindsey Smith — Thu, 29 Dec 2011 16:17:23 +0000

265 Kalamazoo City employees are eligible for the early retirement incentive. According to the city’s Human Resources Director Jerome Post, 191 of them have already signed up. “I have to admit I’m a little surprised at the number of people,” Post said the number is higher than he expected.

“It’s been a little bit anxiety ridden for us but at the same time we’ve been very excited about the opportunity this presents for us to restructure virtually every department in the city,” Post said.

Michigan governor signs bills affecting state workers

The Associated Press — Thu, 15 Dec 2011 21:31:01 +0000

LANSING, Mich. (AP) - Gov. Rick Snyder has signed two bills that will affect some state workers' retiree health care benefits and reduce the future amount the state needs to fund by $5.6 billion.

Workers hired after Jan. 1 won't get state health care coverage when they retire, although they'll get an extra 2 percent match in their 401(k) or 457 retirement plans while working to help them save for future health care costs.

The legislation signed Thursday also refunds the 3 percent contribution toward retiree health care that state workers have been paying for more than a year.

The refunds go out Jan. 19. Workers can choose to receive the money in their paychecks or as a deposit into their retirement accounts. A worker making $50,000 a year should get about $1,500 back.

Michigan retirees call for repeal of new retirement income tax

The Associated Press — Fri, 02 Dec 2011 18:14:28 +0000

LANSING, Mich. (AP) - Organizations representing retiree groups say they want the Michigan Legislature to repeal an unpopular tax on pensions, or lawmakers will pay the political price in the 2012 election.

The AARP and groups representing public employee retirees called for a repeal Friday before the new tax plan takes effect in January.

The groups say they haven't ruled out filing suit in federal court to try and block the changes, but they are focused on getting lawmakers to take action.

House approves state worker retirement contribution

Laura Weber — Thu, 03 Nov 2011 21:11:35 +0000

Michigan state workers may soon be required to contribute four percent of their salaries into their retirement benefit plans, or choose to convert their retirement benefits to a 401-K plan.

That’s according to a bill approved by the state House.

Democratic state Representative Brandon Dillon said the proposal puts the health and wellness of future retirees at risk.

"We should be looking at ways to expand access to health care, whether in the public or private sector, and the reality is this bill is going to make people’s health care and the ability to get treatment essentially based on the stock market, which we know in the past 10 years has been pretty tough, and I just don’t think that’s the right direction to go," said Dillon.

State employees currently contribute three percent of their salaries to their retirement benefits plans.

Republicans say the current retirement plan is not financially sustainable with too many retirement obligations going into the future.