By BROOKE KANSIER
Capital News Service
LANSING – The Michigan Public School Employee Retirement System (MPSERS) is setting new records – and not in a good way. The pension system is underfunded by $26.5 billion – the biggest hole ever, according to the Midland-based Mackinac Center for Public Policy. MPSERS serves K-12 public school districts, community colleges, intermediate districts and a handful of libraries and public universities. As of last year, it had 227,756 active members and 204,512 retirees. The fund’s liabilities have been increasing for decades, said Jarrett Skorup, a policy analyst with the Mackinac Center.