Star Parker · Oct. 5, 2016

I participated in a conference last week in Grand Rapids, Michigan, sponsored by the Western Michigan Policy Forum.

The focus of the conference was getting Michigan on sound fiscal footing, and one of the main topics of discussion was pensions.

Public pension systems around the state of Michigan are grossly underfunded.

According to the Mackinac Center, the average city in the state of Michigan has only funded 67 percent of its pension liabilities.

According to Mackinac, there is only one solution, and that is moving to the trend in pension reform that has been going on for years. That is, switching to defined contribution pension programs and away from defined benefit programs.

The defined contribution approach puts control and responsibility on the employee. Rather than the employer promising a benefit, the employee takes control, invests his or her own funds, and reaps the benefits at retirement…. read more at :