© 2022 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
WKAR News

Republican Bills Close Pension To New Hires, Provide 401(k)

Pension protest
ajehals
/
Flickr
School employees' pension system are expected to change.

Republicans who control the Michigan Legislature have introduced long-expected legislation to close the school employees' pension system to new hires and provide them a 401(k) only.

The bills proposed Tuesday in the House and Senate are identical. They would affect teachers and others hired after Sept. 30 and are modeled after a plan that has been offered to state employees hired since 1997.

Gov. Rick Snyder, a Republican, has expressed concern with the switch due to potential upfront transition costs, and the disagreement threatens to stall enactment of the next state budget.

The main bill sponsors, Sen. Phil Pavlov of St. Clair Township and Rep. Tom Albert of Lowell, say the measures would help keep a promise for current and future retirees while eventually putting more money into classrooms.

Related Content
News from WKAR will never be behind a paywall. Ever. We need your help to keep our coverage free for everyone. Please consider supporting the news you rely on with a donation today. You can support our journalism for as little as $5. Every contribution, no matter the size, propels our vital coverage. Thank you.