Fewer MI teachers than expected taking retirement deal
By Rick Pluta, Michigan Public Radio Network
LANSING, MI –
Friday is the deadline for eligible school employees to accept an enhanced retirement offer from the state. As Michigan Public Radio's Rick Pluta reports, it appears the retirement plan is not likely to hit its targets to save schools money.
The plan counts on 30,000 veteran teachers and other school employees to accept the deal. The state offered enhanced payments to get more-expensive employees off the payrolls. The ones that remain will pay more for their health and retirement benefits.
The state retirement office reports applications so far adding up to less than half the projected numbers, which could mean anticipated savings will fall short of the $680 million schools were counting on.
Peter Spadafore is with the Michigan Association of School Boards.
"We're not sure how successful the incentive's going to be, so we'll see what happens as the numbers become official, and we'll see if it was worth it," he says.
That will vary from district to district depending on how many school employees actually retire, how many are replaced, and what those replacements are paid.