The Michigan House and Senate introduced identical bills May 23 aimed at ending the state’s controversial pension system and transitioning all education employees to a 401(k) defined contribution plan.
The Michigan Public Schools Employee Retirement System defined benefit retirement plan came under great scrutiny over the past decade as shrinking student and teacher rolls caused it to become more and more underfunded. According to the plan’s 2016 annual report, the plan is only 63 percent funded and has unfunded liabilities of $25.5 billion. Recent estimates place unfunded liabilities closer to $29 billion.
Under the bills, all public school ...
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