Benefits

Michigan Teachers’ Pension Reform Still Up in the Air

By Rebecca Moore editors@plansponsor.com | July 19, 2012

July 19, 2012 (PLANSPONSOR.com) - A bill that would reform the Michigan Public School Employees Retirement System was defeated by the state Senate.

The House version of the bill would trim the system's long-term liability by $15 billion by prefunding retirement health care, taking more money out of the pockets of school workers and freezing school district legacy costs for one year. However, the house bill rejects a proposal to move from the current hybrid pension/403(b) plan to a defined contribution plan only  (see “Michigan House Rejects Switch to DC Plan for Teachers”).  

The Detroit News reports the issue now goes to a joint House-Senate conference committee where the chambers will try to forge a compromise.