Governor, Lawmakers Reach Pension Deal

Governor Snyder and Republican legislative leaders say that have reached a tentative framework on making changes to Michigan’s teacher retirement system. They reported the agreement after a meeting at the Capitol Thursday. The progress means Snyder will be involved in budget decisions again after GOP leaders excluded him. Details are being hashed out, and it may take some time according to House Speaker Tom Leonard.

“If this agreement means we have to move the budget back a little further, I’m willing to do that,” Leonard said.

But the framework calls for newly hired school employees to default into a better 401(k) plan, but leave them the option of choosing a pension plan that would likely cost them more of their paycheck than now. Current workers hired since 2010 get a blended pension and 401(k). There also could be a trigger to close the new pension system if it isn’t adequately funded. Snyder says the framework “provides some good things for school employees.”