State employee retirement plan remains option

WKAR Public Media

Published June 8, 2010 at 5:12 PM EDT

By AP

LANSING, MI –

Michigan's legislative leaders are still hoping to craft a retirement incentive package for state employees.

Democratic House Speaker Andy Dillon and a spokesman for Republican Senate Majority Leader Mike Bishop said Tuesday the proposal could still be part of a potential plan to balance next year's state budget.

Dillon says a retirement plan could save more than $100 million in the fiscal year that starts Oct. 1. The final savings would depend on the plan's specifics.

The plan will likely be similar to a recently passed retirement incentive package for public school employees. That plan slightly improves pension benefits for school employees retiring this summer. Remaining employees must contribute 3% of their salaries to retiree health plans.

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