State Rep. Thomas Albert today said Gov. Whitmer’s budget proposal risks the pensions promised to Michigan’s teachers and school employees.

“The governor’s school funding increase sounds great – until you dig a little deeper and realize it comes at the expense of our teachers’ pensions,” said Albert, of Lowell. “The administration has recklessly decided to disregard both the Attorney General’s office and the plain language of the law in favor of a flashy figure that grabs headlines.”

Albert, a member of the House Appropriations Committee, led past reforms to make the teacher retirement system more financially secure and free up more money for classrooms in the future. His reforms, signed into law in 2018, lower the payroll growth assumption used in the Michigan Public School Employees Retirement System.

Albert said the Whitmer administration refuses to lower the payroll growth assumption from its current 3.5%, despite the law.

“I recently received a response from the Attorney General’s office agreeing with my position that the payroll growth assumption must be lowered to 2.75% from 3.5%,” Albert said. “This small percentage change might not sound like a lot, but it has an estimated $166 million impact on the pension payment this year alone.

“Gov. Whitmer has often accused Republicans of using pensioners money for other purposes – yet her budget flagrantly disregards the law by underfunding the pension system. The hypocrisy is pretty thick.”

###