Gov. Rick Snyder has signed a bill modernizing the Michigan Public School Employees Retirement System, increasing the state’s share to defined contribution plans, while reducing the unfunded liabilities of the overall system.
“Modernizing the school employee retirement system means these benefits will be there for retired school employees in the long term, while at the same time protecting taxpayers from escalating liabilities,” Snyder said.
Senate Bill 401, sponsored by state Sen. Phil Pavlov, will close the current “hybrid” plan to new enrollees as of Feb. 1, 2018.
It creates a new 401(k)-style defined contribution plan with an automatic employer contribution of 4 percent of the employee’s salary, and an additional voluntary matching contribution of 3 percent from the state School Aid Fund.
- Posted July 19, 2017
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Legislation to protect school workers' benefits
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