His recent study shows how to save taxpayers billions
Senate Bill 1040, which would increase teacher contributions to their retirement system, won’t help reduce an unfunded liability in the fund of more than $17 billion, a Mackinac Center analyst told The Detroit News.
James Hohman, assistant director of fiscal policy, recently authored a study explaining to legislators in very clear terms what actions they could take to close the fund and remove the liability burden from taxpayers.
Sen. Roger Kahn, R-Saginaw, who introduced SB 1040, told The News he disagreed with Hohman’s analysis. A similar Mackinac Center study, however, showed that closing the defined-benefit retirement system for state employees hired after 1997 has saved taxpayers up to $4.3 billion in unfunded liability.