Introduced
by
To establish a defined-benefit type retirement system for state employees. Under current law, state employees hired after March of 1997 may only participate in a newer, 401k-type defined-contribution plan, which is "portable" for the employee, and reduces the state's liability of for future employee pension benefits. The bill would give government workers a choice of either entering the previous defined benefit plan or a defined contribution plan. The Senate Fiscal Agency recently prepared a <a href="http://www.senate.michigan.gov/sfa/Publications/Notes/2006Notes/notesjulaug06ks.pdf">memo</a> comparing the liabilities that defined benefit obligations place on schools, and the reduced liabilities of the state under the defined contribution system.
Referred to the Committee on Appropriations
