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Teachers' Unions Lose Challenge to Michigan Pension Plan Changes

"Teachers will have to contribute to their pensions, after a Michigan Court of Appeals panel rejected a challenge from state teachers' unions. The unions contended that changes to state law requiring the contributions were contrary to promises made in pamphlets, brochures and other documents regarding the retirement system. Judge Kirsten F. Kelly wrote in the appellate ruling that information published by the state about the retirement system did not constitute a contract overruling the changes lawmakers approved to the system."

Job-Based Health Coverage Plummets in Michigan

"Nearly 1.6 million Michigan residents lost coverage from employer-sponsored health insurance plans between 2000 and 2011 -- more people than in any other state -- according to a recent study by the Economic Policy Institute in Washington, D.C. California ranked second with 1.5 million of that state's residents losing employer-sponsored coverage during the past decade. But California has nearly four times Michigan's population of 9.9 million people."

Pension Rights Center Says Benefit Calculation Errors Are Fairly Common

"A calculation error made years ago and only recently discovered caused 283 McLaren Bay Region retirees to be either overpaid or underpaid when it came to their pensions, and Rebecca Davis, legal director at the Washington, D.C.-based Pension Rights Center, says the situation is common.... 'This is the second most common situation that we deal with, so it's very prevalent.' The most common situation they encounter is lost pensions."

Consumer Advocates Worry Blue Cross Blue Shield Changes Would Mean Higher Rates

"Since 1980, Blue Cross has been governed by PA 350 as Michigan's insurer of last resort. The law exempts Blue Cross from paying state and local taxes in exchange for offering coverage to people with pre-existing conditions. It also sets more stringent regulations over rate increases. The new structure would include a separate, independent nonprofit entity funded with $1.5 billion in contributions from Blue Cross over the next 18 years. This would serve as a continuation of the organization's charitable mission."

Unfunded Legacy Costs = Big Trouble for Local Governments

"Too many local units of government in Michigan fail to fund in their current operating budgets' pension and retiree health-care (e.g. legacy) costs, as recommended by an actuary. Often, the refusal to fund arises as a concession to employee groups seeking to avoid an impact today that can be pushed into a future year's budget. But the future is now and legacy funding has become a staggering financial burden on many local governments. These costs are no longer merely the elephant in the room; they are a giant mammoth that threatens even core services.... The future of Detroit's next generation has been mortgaged."

Tentative Deal Reached on Big Changes in Michigan's Teacher Retirement System

"The Michigan Legislature is poised to vote Thursday on the biggest changes in the state's teacher retirement system in a generation ... Senate Republicans have agreed -- for now -- to hold off on their plan to move newly hired school employees into a 401(k)-only retirement plan, keeping intact a hybrid pension/401(k) system that has been in place since mid-2010. Older workers will remain in a pension-only, or defined benefit, plan regardless."

Lump Sum Offerings to Hourly Retirees Most Likely on GM's Agenda

"While announcing it will offer 42,000 of its 118,000 U.S. white-collar retirees a lump-sum of cash if they agree to stop taking monthly benefits, GM will continue to look at ways of reducing its balance sheet, according to company officials.... [A company spokesman] would not directly say what the Detroit-based automaker's future plans are for lowering pension obligations, but said they were 'a significant topic of discussion' during last year's contract negotiations with the union.... The current four-year contract between the UAW and GM will expire in 2015."