Granholm signs MI school employee retirement bills
LANSING, MI –
Governor Granholm has signed legislation to encourage thousands of veteran teachers and other school employees to retire.
School employees have less than a month - until June 11th - to make a decision on accepting the retirement offer. School employees who do accept will get a slight sweetener in their retirement payments. Remaining employees will pay more for their health and pension benefits.
Governor Granholm says the retirements will save schools a total of three billion dollars over the next decade. But the real savings will depend on how many teachers and support staff take the deal. As many as 56,000 school employees may be eligible for the retirement offer and the expectation is maybe half will actually leave. Many, but not necessarily all, the retirees would be replaced by younger, less-expensive employees. This is also a welcome political victory for the governor, who called for the retirement plan in her State of the State address in January.