LANSING, Mich. (AP) - The Latest on the Michigan Legislature’s consideration of teacher retirement legislation (all times local):
2:45 p.m.
The Republican-led Michigan House has narrowly voted to coax more newly hired teachers into a 401(k)-style retirement plan by making them assume more of the risk if they pick a pension option.
Identical legislation cleared the GOP-controlled Senate Thursday. The votes set the stage for final voting next week after Gov. Rick Snyder and top Republicans reached a deal in recent days.
One Republican says pensions are a ’vestige of a bygone era’ and the bill would keep Michigan from accumulating debt. Democrats say the legislation would make it harder to recruit teachers and would be more expensive for the state.
The change would affect school employees after on or after next Feb. 1. Also, those who have already chosen a 401(k)-only plan would see an enhanced employer contribution.
___
12:50 p.m.
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 has narrowly passed the Republican-controlled Michigan Senate.
The vote Thursday sets the stage for a final legislative vote next week, though the GOP-led House may first pass its own bill later Thursday.
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 provisions that would force new teachers wanting a pension to bear more costs and could eventually block new hires from any pension.
___
11 a.m.
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.
Please read our comment policy before commenting.