Anderson Economic Group Work

Why closing Michigan pension system didn’t stop debt

It could mean about $16 million in additional costs for 2018 and up to $813 million a year by 2048, according to a recent analysis by the Anderson Economic Group commissioned by Macomb County superintendents.

While the state is helping districts pay down unfunded liabilities, any increases in “normal costs” would directly increase costs for local schools, said Jason Horwitz, a senior consultant with the Anderson Economic Group.

“The current liability doesn’t go anywhere if you close the system,” Horwitz said. “Of course, you’re reducing the risk for future unfunded liabilities that could arise from new employees.”

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