MPS’ retiree benefit costs drop by $1 billion
By Erin Richards of the Journal Sentinel Sept. 17, 2012
Though the savings can’t be used for classroom expenses, it shrinks a looming financial burden to meet promises to retirees in the form of health care and other nonpension benefits.
A new actuarial report released Monday showed the district’s total obligation to retirees dropped to about $1.4 billion in July 2011, compared with a projected $2.4 billion when the costs were calculated in July 2009.
While the district championed the savings Monday as putting the district on a better financial footing, unanswered was the effect of a Dane County judge’s ruling Friday overturning Act 10 and what happens now as the case heads toward appeal.
The primary reason the future obligation dropped is the district raised eligibility requirements for retirement benefits other than pension and changed the design of health care plans, which Act 10 freed the district to pursue.
That leaves questions about whether some of the predicted savings can still be realized once the bulk of MPS employees’ contracts – including teachers’ – expire next summer.
Read more at JSOnline.
And the left wants us to throw ACT 10 out? We need to move the capitol out of Madison.