MPS to freeze supplemental pension, end practice
MILWAUKEE — Milwaukee Public Schools will freeze a supplemental pension for existing teachers and end the practice for new hires.
The freeze takes effect July 2013, and is expected to save $5 million every year. The secondary pension was created in 1982, to offset any early retirement penalties in the state plan.
This does not impact the pension from the state. Teachers who already have earned benefits under the second pension will not lose anything, and teachers who have already retired will not see a change.
MPS Superintendent Gregory Thornton said in a statement: “We value our teachers, but this is something that has outlived its original purpose and something we can no longer afford.”