Michigan Auto Workers Pension: Solvency Alert

If you are one of the 290,000 auto workers who depend on the Michigan State Employees Retirement System, your retirement security is mathematically at risk. The fund operates with a funding ratio of only 64.2%—well below the 80% threshold considered healthy.

What This Means for Your Retirement

A funding ratio of 64.2% means that for every $1.00 the fund owes you in retirement, it currently holds only $0.64 in assets. The remaining gap must come from:

• Future investment returns (increasingly unlikely at 7%+ return assumptions)
• Increased taxpayer contributions (politically difficult in Michigan)
• Benefit cuts to retirees (the most mathematically likely outcome)

The Michigan Inflation Factor

Even if your nominal pension remains intact, Michigan's local inflation rate of 3.7% is eroding purchasing power faster than standard COLA adjustments. A fixed $2,400/month payment today buys significantly less by 2039.

Wealth Protection Strategy for Michigan Auto Workers

Smart auto workers in Michigan are not waiting for political solutions. They are:

1. Maximizing 457(b) or 403(b) contributions to build a personal safety net outside the pension system
2. Opening a Self-Directed IRA with physical precious metals (per IRS Code 408(m)(3)) for counterparty-free diversification
3. Requesting pension buy-out analysis if offered by Michigan State Employees Retirement System
4. Consulting a fee-only fiduciary advisor (not a commission-based salesperson)