Michigan Bill Focuses on 401(k) Plan Instead of Teacher Pensions

Via AP:  

More newly hired teachers would be steered into a 401(k)-style retirement plan instead of one that includes a traditional pension under a bill that faces a critical test in Michigan's Legislature.

Majority House and Senate Republicans are expected to try to vote on the legislation Thursday - if they have enough support. The bill must clear one chamber Thursday if lawmakers want to finalize it next week.

Republicans say the legislation would fix the Public School Employees Retirement System by keeping debt in check and giving new hires a more portable retirement-savings account with no future risk to future taxpayers.

Democrats welcome a more generous 401(k) plan but say the legislation would not address long-term liabilities. They also oppose a provision that could eventually block new hires from any pension.


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