Benefits July 19, 2012
Michigan Teachers’ Pension Reform Still Up in the Air
July 19, 2012 (PLANSPONSOR.com) - A bill that would reform the Michigan Public School Employees Retirement System was defeated by the state Senate.
Reported by Rebecca Moore
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.