Senate OKs Bill Ending Pensions for New Teachers
The Michigan Senate has passed legislation that would end pensions for newly hired public school employees and switch them into a 401 (k)-style retirement plan.
The Republican-led Senate on Thursday passed the measure that includes many changes to the state's public school employees' retirement system. The bill now goes to the House.
A key provision would end the pension plan for teachers hired after July 1, 2013.
Proponents say the changes would reduce a $45 billion unfunded liability. Critics counter they could cost the state billions in the years ahead.
Many current and retired teachers say the proposed changes are unfair. The Coalition for Secure-Retirement-Michigan says the state constitution guarantees the state has to live up to its pension promises and a lawsuit is likely if the measure is enacted.