LANSING (WWJ) – Switching Michigan teachers out of traditional pensions and into government savings plans may cost more than it would save.
That’s the assessment of a bill now pending in the State Senate from Gary Olsen – the Senate Fiscal Agency Director under Governor Granholm.
“Those costs are very significant actually over six years with the total increase costs of the shift would be $1.4 billon,” said Olsen.
Olsen has written an analysis of the legislation for the “Coalition for Secure Retirement”.
The bill would mandate all new teachers be placed into 401K style plans instead of “defined pension plans”.