1  Public Act 487 of 1996.

2  Ibid.

3  Richard C. Dreyfuss, “Michigan’s Public-Employee Retirement Benefits: Benchmarking and Managing Benefits and Costs,”(Mackinac Center for Public Policy, Oct. 25, 2010), 1, http://www.mackinac.org/archives/2010/S2010-05.pdf (accessed March 28, 2011).

4  “Michigan State Employees’ Retirement System 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), A-1; “Michigan Public School Employees’ Retirement System 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), A-1.

5  “Michigan State Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2010,” (Michigan Office of Retirement Services, 2010), 70, http://www.michigan.gov/documents/ orsstatedb/SERS_2010_Published_1-10-11_342741_7.pdf (accessed March 17, 2011).

6  Specifically, data were taken from the comprehensive annual financial reports for the Michigan State Employees’ Retirement System in fiscal years 1998, 2000, 2002, 2004, 2006, 2008 and 2010. See “State Employees Defined Benefit Plan: Comprehensive Annual Financial Reports (CAFRs),” (Department of Technology, Management & Budget, Office of Retirement Services, 2011), http://goo.gl/AE6zU (accessed May 10, 2011).

7  James Hohman, Mackinac Center for Public Policy, e-mail from Kerrie Vanden Bosch, Michigan Office of Retirement Services, May 10, 2011.

8  James Hohman, Mackinac Center for Public Policy, e-mail from Kerrie Vanden Bosch, Michigan Office of Retirement Services, June 13, 2011.

9  James Hohman, Mackinac Center for Public Policy, e-mail from Kerrie Vanden Bosch, Michigan Office of Retirement Services, May 10, 2011.

10  “Michigan State Employees’ Retiree Health Benefits 2010 Annual Actuarial Valuation Report,” (Gabriel Roeder Smith & Company, 2011), D-1.

11  James Hohman, Mackinac Center for Public Policy, various communications by phone and by e-mail with officials with the Michigan Office of Retirement Services, the Michigan Senate Fiscal Agency,  the Michigan Department of Civil Service, the Michigan State Office of the Auditor General and representatives of the state’s third-party administrator of the defined-contribution programs, May 4-June 10, 2011.

12  James Hohman, Mackinac Center for Public Policy, e-mail from Kathryn Summers, Michigan Senate Fiscal Agency, March 7, 2011.

13 Author’s estimate based on “Michigan State Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2010,” (Michigan Office of Retirement Services, 2010), 53, http://www.michigan.gov/documents/orsstatedb/SERS_2010_ Published_1-10-11_342741_7.pdf (accessed March 17, 2011); “Michigan State Employees’ Retirement System: Comprehensive Annual Financial Report for the Fiscal Year Ended Sept. 30, 2000,” (Michigan Office of Retirement Services, 2001), 38, http://www.michigan.gov/documents/sers2000cafr_115296_7.pdf (accessed April 20, 2011).

14  Julia K. Bonafede, Steven J. Foresti and Russell J. Walker, “2011 Wilshire Report on State Retirement Systems: Funding Levels and Asset Allocation,”(Wilshire Consulting, 2011), 14, http://www.scribd .com/doc/50219014/2011-Wilshire-Report-on-State-Retirement-Systems-Funding-Levels-and-Asset-Allocation (accessed May 8).