Lawmakers Propose 401-K-Style Retirement Plan For Teachers
LANSING (WWJ) – In this age of budget cutting, new and creative ways are being sought to find ways of saving money. WWJ’s Rob Sanford reports Lansing is now looking at a plan to change the retirement plan of Michigan teachers.
Last year, the state Legislature turned back a proposal that would have changed the retirement system of Michigan teachers.
Now, Republican state Senator Rick Jones of Grand Ledge is introducing a bill that would establish a 401k-style plan because the current program is not working.
“We did it with the state employees years ago, and now all state employees are hired with a 401-k, including legislators. So I believe its high time we did it for teachers,” Jones said.
Under Jones proposal, current school employees would keep their plan and guaranteed payment of their retirement by the Michigan constitution.
If the idea is passed, the lawmaker claims some school districts will see 21 cents of every dollar spent on teacher salaries going toward the retirement plan.