Mich. Senate OKs bill ending new teacher pensions

By: Associated Press Email
By: Associated Press Email

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 Jan. 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.

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