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A Business Insider article "Michigan's Switch To 401(k)-Style Public Pensions Saved $4.3 Billion" is based on a recent Mackinac Center report. The article cites the Center's findings that the state has cut state employee pension liabilities in half by changing from a defined-benefit to a defined-contribution pension plan. The analysis suggests extending this switch to teachers would save even more taxpayer money, as the their pension system currently has $25 billion in unfunded liability, the Business Insider reports.
The Center report, "Estimated Savings From Michigan’s 1997 State Employees Pension Plan Reform," was written by adjunct scholar Richard Dreyfuss, a business consultant and actuary.
"It's been beneficial to taxpayers," Dreyfuss told the Lansing State Journal for its story about the study.
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The Mackinac Center for Public Policy is a nonprofit research and educational institute that advances the principles of free markets and limited government. Through our research and education programs, we challenge government overreach and advocate for a free-market approach to public policy that frees people to realize their potential and dreams.
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