Government Employee Pension Reforms Passed!

Date: July 13, 2017

Related Content: News State Michigan State Budget

A major step in addressing the unfunded liabilities of generous government employee benefits has been accomplished with the passage of NFIB backed Senate Bill 401. The legislation will address the ongoing liability of the state’s teacher pension system (Michigan Public School Employees Retirement System – MPSERS), by encouraging newly hired teachers to opt into a 401(k)-type defined contribution plan.

 

Michigan small business owners support efforts to bring some common sense to expensive government pensions by moving them from the unsustainable defined benefit model to the defined contribution method used in the private sector.

 

Despite opposition from the teacher’s unions and other government employee labor unions, the legislation was passed and is expected to be signed by Governor Snyder.

 

The Reason Foundation has called the legislation “…a first of its kind, innovative pension reform bill that will provide a new set of retirement choices for state teachers and cap the growth of liabilities in the state’s current, structurally flawed retirement plan. The Michigan Public School Employee System (MPSERS)—currently only 60% funded with $29 billion in unfunded pension liabilities—will have its most realistic path to solvency in the past two decades.” You can read more about the details of the legislation HERE.

Related Content: News | State | Michigan | State Budget

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is America's leading small business association, promoting and protecting the right of our members to own, operate, and grow their business

Find out more about
NFIB Membership

Or call us today

1-800-634-2669

News

State Issues


Choose Your State

Foundations

YEF Foundation Research Center Legal Foundation

Member Benefits