State Fails to Make Required Teacher Pension Fund Contribution

State Fails to Make Required Teacher Pension Fund Contribution [Michigan Capitol Confidential]: "For the sixth year in a row, Michigan officials failed to pay the full amount the state's own experts say is required to adequately fund the school employee pension system.
In addition to the risks associated with adding to the billions in unfunded liabilities the system has already accumulated, this is also imposing more stress on local school budgets.
According to rules of a defined benefit pension system, the state is supposed to contribute an amount called the “annual requirement contribution,” or ARC, into the Michigan Public School Employees Retirement System (MPSERS) every year.
For 2015, actuarial accountants say that comes to $2.18 billion.
But the state of Michigan paid just $1.97 billion, a $210 million shortfall.
The last year the state fully paid the recommended amount was 2009, and since then, the cumulative underfunding has totaled $2.03 billion.
“Underfunding pensions kicks the costs for current service into the future and is unfair to teachers, administrators and taxpayers alike,” said James Hohman, the assistant director of fiscal policy for the Mackinac Center for Public Policy..."