Teachers hired in 2013, or any time after, would not qualify for the state’s current teacher pension system, under legislation passed today in the state senate. It passed narrowly in the Republican-led chamber, with a 20-to-18 vote.
New employees would be offered a 401k-type plan.
Current teachers would continue to qualify for the pension system, but they would have to pay more of their retirement costs or choose the new 401k option.
Retiree health care premiums would double, if the bill becomes law. The new retiree contribution would be 20 percent.
The bill would save the state $4.9 Billion dollars in unfunded pension liabilities, according to analysis from the state Senate Fiscal Agency.
Next, the bill moves to the state House.
A state Senator from northern Michigan, Howard Walker, R-Traverse City, is one of the sponsors.