Reforms to the Michigan teacher pension system are close to being implemented. State Senator John Proos tells WSJM News the plan being pushed by Republicans would change the retirement system from a fully-paid state pension to a 401K for teachers. He says the old system isn’t sustainable, and a 401(k)makes more sense in the modern marketplace.
“There’s been lots of changes in the retirement systems across the board of public and private institutions,” Proos said. “So, we look at that unfunded liability, and we say what is it that we’re going to do to guarantee dollars for tomorrow’s retirees and give today’s new teachers the kind of portability that they’re asking for,” Proos said.
Proos says the new plan would not apply to teachers already in the pension system. The teacher retirement reforms are one of the state GOP’s top legislative priorities for the lame duck session.