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Tue September 4, 2012
Snyder to Sign Teacher Retirement Legislation
Teachers unions are already in court trying to block legislation to be signed into law tomorrow (Tue.) by Governor Rick Snyder. It w ill change how public school employees save for retirement and pay for health coverage after they’re done working.
The lawsuit was filed Friday. Teachers unions say the new plan breaks contracts, and they want a judge in Lansing to hold up the new law while their legal challenge plays out.
Governor Snyder says this plan is necessary to whittle down unfunded liabilities adding up to billions of dollars, ensure teachers will get their retirement benefits, and that taxpayers won’t be forced to shoulder a bailout years down the road.
“It’s really making us much more fiscally responsible for the short and the long term," Snyder says.
If the law is upheld, school employees will have to pay more for their retirement benefits, and new hires will no longer get retirement health coverage. They will get savings accounts that will help buy that coverage after they are done working.