The first in a six-part series on the state of pensions in Michigan
– At just 61.6 percent funded, Michigan ranks 39th nationally for the health of its public pension system, according to a report by the Wall Street Journal
MARQUETTE — A perfect storm has converged around public pension plans, putting municipalities, schools, administrators and legislators in a bind over how to rebuild and fund benefits sustainably into the future.
With costs rising to meet the growing liability, public entities are facing difficult decisions.
“You start playing this game of, well, what’s more important — should we pave this road or pay this extra retirement contribution?” said Marquette City CFO Gary Simpson.
Unfunded accrued pension liability is the difference between the total amount due to both retirees and current employees upon retirement, and the actual amount of money the system has on hand to make those payments.