The Michigan Senate has approved changes to the state’s teacher pension system, creating a 401(k) option for newly-hired teachers. State Senator John Proos tells WSJM News this is what was worked out with the governor.
“This is exactly the compromise that was agreed to between the House, the Senate, and the governor,” Proos said. “It’s a part of the overall budget agreement that’s coming together also.”
Proos tells us the old fashioned pensions given to teachers are not sustainable.
“The kind of numbers we’re looking at when it comes to the public school employees retirement system, they’re so catastrophic that they very well could help to cause future generations of teachers who are counting on those benefits to be even more in jeopardy,” Proos said.
Proos stresses, though, that teachers already promised those pensions will still get them. This new 401(k) option is for new hires. The state House is considering the exact same legislation, and Proos thinks the entire budget will be wrapped up next week.