LANSING, Mich. (AP) — Michigan legislative committees are considering legislation to steer more newly hired school employees into 401(k)-only retirement plans after a deal was reached between Republican legislative leaders and Gov. Rick Snyder.
House and Senate panels are holding hearings Wednesday, and majority Republicans are expected to move quickly so the full Legislature can finish passing the bills along with the state budget next week.
Under a new version of the legislation, teachers and other new school workers hired on or after next Feb. 1 would be automatically enrolled in a 401(k) plan unless they opt for a costlier pension within 75 days. There would be a “trigger” provision to stop new entrants from getting a pension in the future if the system is underfunded by a certain amount.