Largely due to poor investment returns, the unfunded actuarial accrued liability (UAAL) of the Michigan Public School Employees Retirement System (MPSERS) has grown substantially over the last decade. To compensate, all employers have increased the annual amount they contribute to the system in order to finance the benefits promised to both current and retired employees. In addition, payrolls have remained flat as declining funding from state government and declining enrollment have suppressed employment growth at schools and universities across the state.
Michigan Technological University, on behalf of all seven MPSERS universities, retained Anderson Economic Group to analyze the costs of reforming MPSERS.