Policy Documents

Five Options for Addressing ‘Transition Costs’ When Closing the MPSERS Pension Plan

January 9, 2012

Michigan’s $17.6 billion unfunded liability and large annual payments for public school employees’ pensions means it’s time to switch the system from defined benefits to a 401(k)-style program, writes James Hohman in a study for the Mackinac Center for Public Policy. He discusses how to manage the transition costs associated with such a switch, offering five different ways lawmakers could ease and manage them.