Michigan Legislature OKs School Retirement Plan

The Michigan Legislature has approved a plan aimed at saving schools money by coaxing thousands of public school employees into retirement this summer. The bill narrowly passed the Democrat-led House by a 56-45 vote early Friday. It earlier passed the Republican-led Senate by a 21-14 vote mostly along party lines. The bill now goes to Gov. Jennifer Granholm, who is expected to sign it. The plan would slightly increase pension benefits for eligible school employees who retire this summer. Remaining employees would be required to pay an additional 3 percent of their salaries into retiree health plans. Supporters say it would save schools more than $600 million in the fiscal year starting Oct. 1. Opponents say the savings are overestimated. (Copyright 2010 by The Associated Press. All Rights Reserved.)

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