This Week in Pensions: July 31, 2026

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From a major leadership transition in the labor movement to renewed fights over retirement security in Michigan and pension governance in Ohio, workers are continuing to push for a stronger voice in the decisions that shape their careers and retirements.

Here’s what happened this week in pensions.

AFSCME’s Lee Saunders Prepares to Pass the Torch

After nearly five decades with the American Federation of State, County and Municipal Employees (AFSCME) and 14 years as its president, Lee Saunders is preparing to step down at the union’s convention in August.

Saunders, the first Black president in AFSCME’s history, has spent his career advocating for public service workers and strengthening one of the country’s largest public-sector unions. He joined AFSCME as a labor economist in 1978 and rose through the organization before becoming president in 2012. Today, AFSCME represents roughly 1.4 million public service workers across the country.

His departure comes at a consequential moment for organized labor and public employees. During Saunders’ tenure, AFSCME weathered major challenges including the Supreme Court’s Janus v. AFSCME decision, attacks on collective bargaining, the COVID-19 pandemic, and repeated efforts to weaken public employee benefits.

But Saunders has also remained deeply involved in fights to strengthen retirement security. As recently as March, he traveled to Alaska to meet with union leaders working to restore a defined benefit pension for public employees—the kind of state-level fight that has defined much of his career.

As he prepares to leave office, Saunders has emphasized that AFSCME’s strength ultimately rests with its members.

“Leadership changes hands, but the power stays exactly where it has always been, with the workers.”

His retirement will become official at the conclusion of AFSCME’s International Convention, which begins August 17 in Chicago, where delegates will elect the union’s next president.

For public employees and pension advocates, Saunders leaves behind a long record of defending not only workers’ right to organize, but also the wages, benefits, pensions, and public services that strong unions have fought to protect.


Michigan: Corrections Pension Fight Isn’t Over

Michigan correctional officers are once again pushing lawmakers to address a staffing and retention crisis after legislation that would have strengthened their retirement benefits became caught in an extraordinary 18-month political and legal battle.

The pension measures were among nine bills passed by the Michigan Legislature in late 2024 but never transmitted to Gov. Gretchen Whitmer before Republicans took control of the state House. House Speaker Matt Hall continued to withhold the bills, eventually triggering a court fight over whether the Legislature had a constitutional obligation to present legislation passed by both chambers to the governor.

After the courts ordered the bills transmitted, they finally reached Whitmer this month—more than a year after they were originally approved. However, Whitmer vetoed all nine, saying the lengthy delay had made implementation of the legislation as written untenable.

Among the measures lost were bills aimed at improving retirement security for Michigan correctional officers. The legislation would have allowed eligible officers currently participating in the state’s defined contribution plan to move into the Michigan State Police Retirement System’s hybrid pension plan.

For correctional officers, the issue goes far beyond retirement. The Michigan Corrections Organization has argued for years that stronger retirement benefits are necessary to recruit and retain officers as the state prison system struggles with persistent vacancies, mandatory overtime, and increasingly difficult working conditions.

Those problems have not disappeared while the legislation has been tied up. MCO President Byron Osborn said short-staffing continues to affect safety inside Michigan prisons, including at facilities where high-security prisoners are housed.

“We’re still seeing a lot of assaults on staff, assaults on other prisoners.”

The union says shortages have also led to mandatory overtime and disruptions to prison operations, including the suspension of some routine inmate activities. But the pension fight may not be finished.

Michigan Democrats this week reintroduced the nine bills that were vetoed, arguing that the legislative priorities should not disappear simply because the original measures were delayed.

Senate Majority Leader Winnie Brinks made clear lawmakers intend to keep pushing.

“We have not given up this fight and we are not backing down.”

Whitmer has also indicated that she would consider updated legislation to address retirement benefits for correctional officers. That leaves lawmakers with another opportunity to address the problem that started this debate in the first place: Michigan is asking correctional officers to perform demanding, dangerous work while struggling to offer the retirement security needed to keep experienced employees on the job.


Ohio: Teachers Continue Fight to Restore Their Voice on STRS Board

Ohio educators are continuing their push to reverse changes to the State Teachers Retirement System of Ohio board that would dramatically increase political control over the pension system.

Teachers are supporting House Bill 719, legislation that would permanently undo a provision added to the state budget last year restructuring the 11-member STRS board so that political appointees would hold the majority. A court has temporarily blocked that change from taking effect.

Under the disputed structure, eight board members would be political appointees, while only three would be elected by STRS beneficiaries. The provision would also prevent elected system members from serving as chair or vice chair.

Ohio Education Association President and high school math teacher Jeff Wensing criticized both the substance of the change and the process used to approve it.

“This change surfaced literally in the middle of the night during conference committee for the budget.”

The governance fight is particularly significant because STRS Ohio provides retirement security to more than 500,000 current and former educators across the state. For educators, the debate centers on a straightforward principle: the workers and retirees whose retirement savings are being managed should continue to have meaningful representation in how the system is governed.

More than 1,400 OEA members have already contacted lawmakers urging them to support HB 719. Yet educators have not yet been allowed to testify on the legislation.

The fight over STRS governance has stretched well beyond a single legislative session, but Ohio teachers are making it clear they do not intend to give up their seat at the table.

Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.