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Mich. state worker retirement bill clears hurdle

By AP

LANSING, MI –
The Michigan Senate has given a bill that would create a retirement incentive package for state government workers immediate effect after it gets signed by Gov. Jennifer Granholm.

The procedural vote Wednesday would allow the law to take effect roughly three months earlier than it would have otherwise.

Eligible state employees could retire later this year with slightly better pension benefits. Those who stay on the job would be required to pay 3 percent of their salaries into retiree health care funds through September 2013.

Parts of the plan could be challenged in court by state employee unions once it becomes law.

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