A news service for the people of Michigan from the Mackinac Center for Public Policy

An early-retirement incentive may actually have some East Lansing Public School teachers putting off retirement in hopes of getting a lucrative seniority bonus, says Michael Van Beek, the director of education policy at the Mackinac Center for Public Policy.

East Lansing gives its top three teachers in seniority up to 50 percent of their salary when they retire, according to the teacher’s union contract. Teachers with 15 years or more get 30 percent of their annual salary; those with 20 years get 40 percent; and those with 25 years get 50 percent.

Teachers hired after July 1, 1992 are not eligible for the incentive.

“If the goal is to save money by incentivizing teachers to retire, the incentive for teachers is to hang around until you are the top three,” Van Beek said. “Can you hang around for $35,000, $40,000? Buy a boat when you retire? Yeah.”

Van Beek said before 2007, all retiring teachers received up to 50 percent of the annual salary as part of a retirement incentive. He said that was changed to just include the top three.

The lucrative retirement bonus is rare in Michigan schools, Van Beek said.

East Lansing Superintendent David Chapin didn’t respond to an e-mail and a message left at his office.

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Most Popular

SEIU TAKES $33M AND COUNTING
FROM MICHIGAN HOME HELP PROGRAM PROVIDERS — OFTEN FAMILY MEMBERS

ATTORNEY GENERAL ORDERED THE STATE TO STOP TAKING MONEY ON MAY 25, 2012
[clock1]
Skimmed since November 2006
[clock2]
Skimmed after reaching the MI Senate in June 2011
[clock3]
Skimmed after the bill was signed April 10, 2012
[clock4]
Skimmed after the Attorney General
opinion May 25, 2012

The Service Employees International Union (SEIU) "organized” Michigan's self-employed Home Help Program providers for the purpose of skimming dues from their ailing and disabled clients' Medicaid subsidy checks. The majority of these providers are relatives or friends taking care of loved ones. It’s been estimated that less than 25 percent of the providers are hired in an employment setting.

The first counter tallies SEIU dues skimmed since the union and state officials first launched this scheme in late 2006. The second shows the amount skimmed since June 9, 2011, when the Michigan House passed and sent to the Senate a bill to ban this and all similar “stealth unionization” efforts. The third counter shows the dues skimmed since the Governor signed the bill into law on April 10, 2012. The fourth counter shows the amount skimmed since May 25, 2012, when the Attorney General opinion was announced.

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