LANSING, MI (AP)-- Michigan's budget director says he doesn't want lawmakers to pass legislation next week putting new teachers into a 401(K)-style retirement plan.
John Nixon told reporters Thursday that the hybrid plan teachers hired since 2010 fall under is paid for largely by those teachers. It's a model many other states are adopting. He says switching to a defined contribution plan would double the state's costs, increasing funding by about $8 billion over the next 30 years.
Some Senate Republicans are pushing for the switch, saying it would take the state off the hook for future pension costs. Nixon says it's not that simple and further study is needed. He supports passing other parts of the bill that end health care coverage in retirement for new teachers and pay down unfunded liabilities.
