LANSING, Mich. (WWJ) – On the same day that the kids head back to school — the governor is signing legislation that impacts teachers.

It’s the pension and benefits reform package that will mean more out-of-pocket costs for teachers and staff who are not part of the Michigan Public School Employees Retirement system.

Governor Snyder will sign legislation this afternoon that will require those employees to put as much as seven percent of their paychecks into pensions. And, employees under age 65 will pay 20% of their healthcare premiums instead of 10%. New hires won’t qualify for retirement healthcare, but instead will have a health reimbursement account and a 401(k) retirement plan.

Democrats call it an attack on teachers, and teachers’ unions believe the reforms will make it tougher for Michigan to attract the best teachers. Republicans say they have to fill a $50 billion gap in the system.