New Teachers Hired in Michigan May No Longer be Offered a Pension Plan
The Michigan Senate will soon vote on a plan to close the teacher pension plan in the state for new hired teachers.
Teachers would now be offered a 401 (k) plan, instead of a pension. Republican Senate Majority Leader, Arlan Meekhof has said that the Michigan Public School Employees Retirement System is not sustainable as it is, and will no longer be able to sustain itself. Part of the problem is with a $26.7 billion unfunded liability they must pay. Teachers hired since 2010 in Michigan have qualified for a "hybrid" plan that blended the traditional pension plans and a 401 (k) plan. Teachers hired before 2010 received a full pension plan. This bill, if passed, will not affect current or retired Michigan teachers.