Why Some Teachers Prefer a 401(k) Over a Pension

n 2012, the Michigan Legislature passed a bill that kept open the teacher pension system but began allowing school employees to choose a 401(k)-type defined contribution retirement account.
Since then, around 18,000 school employees have chosen the 401(k) instead of the old pension system, according to a FOIA request. Their reasons for making the switch range from concerns about future pension cuts and underfunding to wanting more control over retirement funds.

“I chose the defined contribution option for a number of reasons. One of which … [is] the pension program is underfunded and may or may not be existent when it comes my time to collect,” said Adam Hastings, a math teacher at Athens High School. “ I also was told that the 401(k)-type option was more portable under the circumstance that I should decide to move to another state.”

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See also part II...

Fears About State Pension Underfunding Drive School Employees to Other Options

Detroit Nearing Bankruptcy

Governor Rick Snyder of Michigan on Friday declared a fiscal state of emergency in Detroit in a move that could lead to the appointment of a financial manager who could file for the largest municipal bankruptcy ever.

Snyder's decision allows the city a 10-day grace period to formulate a plan to fix its finances before the governor reconsiders appointing an emergency manager who would likely drastically reduce services.

The Republican governor said he had identified a top candidate for the position, but he declined to name the person.

"I believe it's appropriate to declare the city of Detroit in financial emergency," Snyder said at a forum in Detroit.

Snyder said he agreed with a Feb. 19 report by a six-member team of experts that concluded Michigan's largest city is in dire financial shape and a plan put in place last April to aid Detroit was not sufficiently working.

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Dems are bent over Michigan's "right to work" law

Michigan's congressional delegation met Monday with Gov. Rick Snyder, asking him to veto or at least delay a vote on a "right to work" law moving through the state's legislature.

Democrats and organized labor groups have launched an all-out blitz they are hoping might halt legislation that would establish workers' rights to employment in a workplace without having to join a union. The Republican-held state legislature passed versions of the legislation last week, and are set to bring it up for final consideration as soon as Tuesday.

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Detroit may let abandoned buildings burn

Cash-strapped, arson-prone Detroit could let fires in vacant buildings and homes burn themselves out to save the city Fire Department money.

The fiery notion from Detroit’s Executive Fire Commissioner Donald Austin surfaced as the documentary “Burn,” chronicling a year of Motor City firefighters’ camaraderie in the face of declining budgets and increasing fire calls, made its world premiere at the Tribeca Film Festival in New York.

“We are in no way looking to 'let the city' burn, this is about saving lives and money,” Austin said, according to a report Tuesday by NBC station WDIV in Detroit. “My department is strapped, the budget is strapped, and it’s time to look at a new way of doing things.”

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Romney holds on in Michigan

It was probably closer than Mitt Romney would have liked. But he did win in Michigan tonight, and he did so by a wide enough margin that it can't be called a statistical tie.  Ron Paul came in 3rd with about 12% and Newt Gingrich finished in the cellar with only about 7% of the vote.  On a side note Arizona went for Romney by a wide margin.  The state was largely uncontested.

As polls close all eyes are on Michigan

Michigan is pretty close to a "must win" state for Mitt Romney.  It is his native state and one where his father was a very popular governor.  If he loses there in the wake of his weak showings in the last four primary/caucus contests it would be hugely embarrassing.  Further it would almost certainly call into question his status as the frontrunner and the nominee presumptive of the Republican Party.  In short, if Romney loses Michigan it could throw the entire primary season into chaos.

The most recent polls taken before voting began showed Romney with a very slight lead over his rival Rick Santorum.  But that lead is well within the margin of error and from a statistical perspective amounts to a tie.