LANSING, Mich. (AP) — Republican lawmakers’ renewed push to do away with pensions for newly hired teachers will become a reality only if they can persuade a skeptical Gov. Rick Snyder.
The accountant-turned-governor’s number crunching has left him hesitant about the upfront cost of transitioning to 401(k) plans for future school employees.
Legislation to close the state’s hybrid pension/401(k) system to new hires may be introduced in the coming week.
GOP legislative leaders say the state should “stop digging” and piling on more debt to provide a benefit that few private workers get. But such a move would bring upfront costs that conservatives and pension advocates disagree over.
Opponents say closing the hybrid plan is too expensive and new teachers should continue qualifying for better benefits.