The Michigan Legislature has given final approval to coax more newly hired school employees into a 401(k)-only benefit instead of one that also includes a traditional pension.
The Republican-controlled House approved the bill 55-51 on Tuesday. Next, it’ll go to Gov. Rick Snyder for his expected signature after a procedural step in the GOP-led Senate.
Republicans say this will help stop the state from further debt and modernize a major public-sector retirement system.
Democrats say this is an attack on the teachers and that it will make it harder to recruit quality educators.
This would automatically enroll employees hired on or after Feb. 1, 2018, in a 401(k)-only plan unless they opt out and pay more of their salary towards a pension than current workers do.