by Jonathan Oosting, Detroit News Lansing Bureau
July 13, 2017
Republican Gov. Rick Snyder on Thursday signed into law controversial legislation to overhaul Michigan’s teacher retirement system and steer new hires into 401(k)-style savings accounts rather than hybrid pensions.
The plan faced opposition from public education groups but was a top priority for GOP legislators who say it could help the state avoid adding to the $29.1 billion in unfunded liabilities accrued in an older pension plan closed to new hires in 2010.
Snyder opposed an earlier plan to close the hybrid pension system completely. But he negotiated the final product and signed it one day after the Legislature approved a separate business tax incentive plan he had prioritized, his last chance to do so under a 14-day rule.