LANSING, Mich. – The Michigan Legislature has failed to pass pension reform for the state’s public school teachers, according to MLive.
The current defined-benefit pension system has accumulated a $45 billion unfunded liability, MLive reported.
Senate Majority Leader Randy Richardville, R-Monroe, told MLive that a defined-contribution plan has broad legislative support.
A conference committee has been appointed to resolve differences between House-proposed and Senate-proposed reform, according to MLive. Sen. Richardville told MLive that a compromise will be ready by mid-August.
SOURCE: MLive, “Michigan Senate falls short on teacher pension compromise, districts face missing $300 million in savings,” July 18, 2012
FURTHER READING: Mackinac Center for Public Policy, “Policymakers Still Tripped Up By Pension Transition Costs,” July 17, 2012
Mackinac Center for Public Policy, “Lemons, Leaky Basements and a Losing Bet” July 2012.