Changes have officially been made to the Michigan Public School Employees Retirement system, as Governor Snyder signed into law a Republican-backed package of bills. State Representative Al Pscholka tells WSJM it was a difficult situation to address, but had to be done and it will help local districts.
Pscholka says the reforms cut that to 24-percent. The system itself is facing a projected 50-billion dollar deficit and the reforms require current school employees to put seven-percent of their salaries and pay 20-percent of their health insurance premiums. They had been paying ten-percent. New hires will not get any health insurance when they retire, and in exchange will receive two-thousand dollars into a health reimbursement account and a maximum two-percent matching contribution to a 401k retirement plan. Democrats call the new law a direct attack on teachers.
|
Listen: |
|
Pscholka says the reforms cut that to 24-percent. The system itself is facing a projected 50-billion dollar deficit and the reforms require current school employees to put seven-percent of their salaries and pay 20-percent of their health insurance premiums. They had been paying ten-percent. New hires will not get any health insurance when they retire, and in exchange will receive two-thousand dollars into a health reimbursement account and a maximum two-percent matching contribution to a 401k retirement plan. Democrats call the new law a direct attack on teachers.
WebReadyTM Powered by WireReady® NSI
E-Mail
Print
