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Lawmakers are pushing for changes to the plan because the state faces a $45 billion unfunded liability. School administrators were looking for $300 million in savings from the change, and districts were hoping for an answer before they got much closer to the start of the school year. Of concern to the districts is the contribution they will be making to the teacher pension pool, which will increase from 24.46% of each employee’s salary to 27%, with projections of the figure hitting 33% in a few years. Now that contribution would be capped, which lawmakers said will bring stability to pension funding, and bring money back to the classroom.
Lawmakers are pushing for changes to the plan because the state faces a $45 billion unfunded liability.
School administrators were looking for $300 million in savings from the change, and districts were hoping for an answer before they got much closer to the start of the school year.
Rebecca Mooreeditors@plansponsor.com