Sen. Phil Pavlov (R-St. Clair) and Sen. Mark Jansen (R-Grand Rapids) tried all day to convince fellow legislators that their plan to shut down the current hybrid system and put all new hires into a defined contribution plan was the logical path to reforming the retirement system.
The new plan also called for a return to retirees paying 20 percent of their premiums instead of the 10 percent the House proposed. And there was no help for paying off the system’s stranded costs caused in part by the privatization of jobs.
Their plan couldn’t get traction with legislators, but then neither did the House’s version (H-3) of SB 1040 which was defeated on a 16-22 vote. The issue now goes to a six-member conference committee appointed by Senate Majority Leader Randy Richardville and House Speaker Jase Bolger.
Every Democrat voted against the bill and was joined by Republican Senators Brandenburg, Colbeck, Hune, Jansen, Jones, Meekhof, Nofs, Pappageorge, Pavlov, and Proos.