Michigan legislative panels debate teacher pension changes

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

Lansing, Mich.

LANSING, Mich. (AP) — Michigan legislative committees are considering legislation to steer more newly hired school employees into 401(k)-only retirement plans after a deal was reached between Republican legislative leaders and Gov. Rick Snyder.

House and Senate panels are holding hearings Wednesday, and majority Republicans are expected to move quickly so the full Legislature can finish passing the bills along with the state budget next week.

Under a new version of the legislation, teachers and other new school workers hired on or after next Feb. 1 would be automatically enrolled in a 401(k) plan unless they opt for a costlier pension within 75 days. There would be a “trigger” provision to stop new entrants from getting a pension in the future if the system is underfunded by a certain amount.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Notice: you are using an outdated browser. Microsoft does not recommend using IE as your default browser. Some features on this website, like video and images, might not work properly. For the best experience, please upgrade your browser.