New school-employee retirement plan approved

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LANSING, Mich. The Michigan Legislature has given final approval to legislation to coax more newly hired school employees into a 401(k)-only benefit instead of one that includes a traditional pension.
The Republican-controlled House approved the bill 55-51 Tuesday. It will go to Gov. Rick Snyder's desk for his expected signature after a procedural step in the GOP-led Senate.
Republicans say the legislation will keep the state from accumulating more debt and modernize a major public-sector retirement system. Democrats say the bill is an attack on the teaching profession and will make it harder to recruit quality educators.
The measure would automatically enroll employees hired on or after Feb. 1, 2018, in a 401(k)-only plan unless they opt out and instead pay more of their salary toward a pension than current workers do.



 
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