LANSING, MI (AP) – The Michigan Senate has passed legislation that would end pensions for newly hired public school employees and switch them into a 401(K)-style retirement plan.
The Republican-led Senate on Thursday passed the measure that includes many changes to the state’s Public School Employees’ Retirement System. The bill now goes to the House.
A key provision would end the pension plan for teachers hired after July 1, 2013. Proponents say the changes would reduce a $45 billion unfunded liability. Critics counter they could cost the state billions in the years ahead.
Many current and retired teachers say the proposed changes are unfair. The Coalition for Secure Retirement Michigan says the state constitution guarantees the state has to live up to its pension promises and a lawsuit is likely if the measure is enacted.
