Teachers saw this happen to them and the public education system in Michigan for well over a decade. The Pension system at one time had a very nice prefunding going on. Then a budget crunch came and the rules were changed. Districts could only put in the actual required amounts into the system. This created a decrease the first few years, but as more and more teachers retired, the amount the districts had to pay into the pension system increased. (the payment is the percentage of the districts payroll total) When it jumped from 3% to 5% of payroll people starting sounding alarms. 5% then jumped to 10% and nobody took action. 10% became 15% and then close to 20%. The state government refused to act, so district took matters into their own hands. They privitized anything they could, bus drivers, custodians, substitute teachers, coaches, lifeguards, ect. If it could be privatized it was. Why? The management fees paid to the private companies was less then the amount those employees would cost the district in pension contributions. The system is still broken, but it is better than it was any many ways. New hire teachers are not longer pensioned (Thankfully I was hired under the old system, so if I ever retire I might get a pension).
Other areas of the state still have the major issues and those are not getting fixed any time soon, as that can just a keeps on rollin.
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