House GOP on Verge of Surrendering to MEA

House GOP on Verge of Surrendering to MEA [Michigan Capitol Confidential]
As reported by CapCon, Senators defied government employee unions by voting to close the chronically underfunded “defined benefit” school pension system to new employees, starting in 2013.
If the House follows through, this would be arguably the most transformational state budget reform since Gov. John Engler signed a similar measure for state workers back in 1996.
That measure has helped taxpayers avoid some $4.3 billion in unfunded liability since then.

If the House fails, every new school employee hired going forward represents a new taxpayer liability that won't be extinguished during the lifetime of most who read this. T
he history of this and and other government pension systems suggests that much of this liability won't be properly pre-funded, with the cost falling on our children and grandchildren.