On Tuesday, Michigan Legislature Republicans introduced legislation to close the school employees’ pension system to new hires and provide them with only a 401(k).
The proposed bills will affect those hired after Sept. 30 and were modeled after the plan that has been offered to state employees since 1997.
The bills proposed in the Michigan House and Senate are identical.
Republican Gov. Rick Snyder stated his concern is possible upfront transition cost.
Also, the disagreement threatens to stall enactment of the next state budget.
Sen. Phil Pavlov of St. Clair Township and Rep. Tom Albert of Lowell, the main bill sponsors, say this will help keep a promise for current and future retirees, while eventually putting an increased amount of funds into the classroom.
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