LANSING (AP) – New teachers in Michigan still would get hybrid pensions under changes made to a teacher benefits bill.
The Republican-led state Senate passed a bill last week requiring all teachers hired after July 1 to be in a defined contribution system giving them money toward a 401(k)-style system but no defined benefit pension.
A committee in the Republican-led House passed a substitute Monday to Senate Bill 1040 that would keep new teachers in a hybrid system that’s part defined benefit and part defined contribution plan.
It also would require current teachers to pay less to keep their pensions than the Senate version would.
The substitute would cap the percentage school districts pay into the Michigan Public School Employee Retirement System, with the state picking up the remaining cost, saving districts money.
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