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Sep
22 , 2006 |
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The amount school districts have to pay into public school employee retirement and health care benefits will hit a new high relative to total revenue in the 2006-07 fiscal year, the Senate Fiscal Agency said in a study, with an estimated 12.95 percent of total school revenue paying for the retirement system. In the 1999-2000 fiscal year, contributions to the Michigan Public School Employees Retirement System accounted for 9.13 percent of all school revenues, the study said. For the 2005-06 year, contributions to the system accounted for 11.99 percent of the school's revenues.
The retirement contribution rate paid by school districts for public school employees is expected to hit 17.74 percent of payroll during the 2006-07 fiscal year, another new high. The contribution rate paid for health care should remain at 6.55 percent of the base wage, the same rate as it has been for the last two years.
However, the contribution rate paid for actual retirement pensions will increase by 1.4 percentage points to 11.19 percent, an 83 percent increase in the pension rate paid since the 2001-02 level.
Source: Gongwer News Service, 9-6-06
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