According to MLive reporter Dave Murray, “Key state Senate Republicans say they’re close to a compromise on teacher pension reforms that would move educators into a 401(k)-style plan while saving school districts about $300 million.”

The House and Senate are negotiating a compromise bill to overhaul the current school employee pension system, which is over $22 billion underfunded. The most significant part of the discussion is whether or not to shift new employees into 401(k) accounts or leave them in the current defined-benefit plan, the likes of which are bankrupting cities and states across the country.

Stay Engaged

Receive our weekly emails!

Actually, the debate is much simpler: Should public school employees get special benefits or take part in the same type of defined-contribution pension system benefiting every state government worker hired since 1997 and almost all Michigan private-sector workers (to the extent they get any retirement benefits at all)?


Related Articles:

Time To Fix MPSERS Pension Problem

Michigan’s Top School Pension Payouts

Michigan Funding Its Pensions, Using More Realistic Numbers

Soaring Pension Costs Breaking School Budgets, Crimping Teacher Pay

Snyder’s Veto of Aftermarket Auto Parts Bill a Win for Consumers

Proposed Beer Tax Hike Would Hurt Brewers