Rep. Steele: Raid on teachers’ pension accounts will drive teachers out of Michigan

State Rep. Donni Steele voted Tuesday against a plan to raid teachers’ pension accounts and divert the money to partisan pet projects. The bill, HB 5803, which passed along party lines in the House, strips more than $670 million from the Michigan Public School Teachers’ Retirement Fund (MPSERS), which remains underfunded by more than $34 billion.

“This embarrassing attempt to fund yet more unnecessary government spending at the expense of our teachers can no longer be justified,” said Steele, R-Orion Township. “Instead of supporting our teachers and generously funding their hard-earned retirement accounts, Democrats have voted to cut these benefits. Many of these teachers have taught thousands of children for decades and deserve to be rewarded. Instead, these hard-working teachers must now ask themselves whether they will still receive their benefits when they need them.”

Thanks to responsible fiscal management under previous Republican administrations, the Other Post Employment Benefits (OPEB) system is nearly 100 percent funded. However, MPSERS, the other half of the teachers’ pension system, remains drastically underfunded at over $34 billion.

Steele pointed out that state government should work to pay down its long-term debt – not take on new debt. The upcoming state budget is expected to cost more than $80 billion, meaning Democrats are clamoring to find new ways to finance tens of billions of dollars in new spending.

“Democrats squandered a historic budget last year on pet projects that benefit only select communities,” Steele said. “Instead of recognizing their mistake, they are now doubling down on radical spending. Democrats have an insatiable appetite for spending your taxpayer dollars. Instead of cutting spending, they are gutting the teachers’ pension system.”

The plan will now be forwarded to the Senate for further review.

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