State will study retirement plans for new teachers

By: Associated Press Email
By: Associated Press Email

The leader of the Michigan Senate says lawmakers are pulling back on plans to tackle the retirement system for new teachers.

Republican Randy Richardville of Monroe says a complete change to a 401(k)-style program needs more study. He told reporters Wednesday that lawmakers still are likely to take up changes in retiree health benefits for new teachers.

Teachers hired since 2010 are in a retirement plan that includes defined contributions and defined benefits. The state treasurer has said a total switch to defined contributions like a 401(k) plan would actually require the state to set aside more money than expected from the school aid fund.

Richardville says lawmakers likely will agree to spend $100,000 to study the impact of retirement plan changes. He says the issue is "complex."

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