MEA calls move to table school employee retirement changes ‘the right decision’

EAST LANSING — The Michigan Education Association is praising the Senate’s decision to table costly legislation that would have forced all new school employees into a defined contribution, 401(k)-style retirement plan.

“Tabling this discussion rather than ramming this legislation through is the right decision,” said MEA President Steven Cook. “Education leaders and fiscal experts agree that dismantling the school employee retirement system would have been bad for school employees, parents, kids and taxpayers.”

State budget experts say closing pension plan will cost taxpayers an extra $24 billion

UPDATE (11/30): Senate Fiscal Analysis of SB 102 shows significant costs for school districts

The Senate Fiscal Agency today testified in the Senate Appropriations Committee hearing that a proposal to dismantle the school employee retirement system would cost the state $1.6B to $3.8B over five years, as reported by the Detroit Free Press today.