DPS keeps $30M in federal aid meant for pensions

Apr 26, 2016 by

EM report: U.S. Department of Education has made a claim against DPS for not forwarding aid to state retirement system

Lansing — The state is investigating why the Detroit Public Schools received up to $30 million in U.S. Department of Education reimbursements for the pensions of grant-funded employees, but never sent the money to the state pension fund.

The U.S. Department of Education has made a claim against the school district for not properly forwarding between $25 million and $30 million in federal funds to the Michigan Public School Employees Retirement System, DPS Emergency Manager Steven Rhodes said in an April 15 report to state Treasurer Nick Khouri.

“The matter is still under review, but it appears that from June 2014 to February 2016, DPS obtained reimbursement for its share of pension payments to MPSERS that it did not actually make,” wrote Rhodes, a retired bankruptcy judge who took over operation of Michigan’s largest school district in March.

Source: DPS keeps $30M in federal aid meant for pensions

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