Current and retired public school and community college educators spoke against proposed changes to pension and retirement health insurance benefits at a recent hearing before the Michigan Senate.
State senators are currently considering legislation that would both delay retiree eligibility for health coverage until age 60, require retirees to pay 20 percent of their healthcare premiums and mandate higher pension contributions for current employees, according to The Detroit News.
Lawmakers are seeking a solution as the Michigan Public School Employees Retirement System faces $45.2 billion in unfunded liabilities and school districts struggle with the prospect of higher retirement costs. Some educators and officials noted that the bill could be improved, suggesting changes such as a grandfather clause for employees who are nearing retirement but wish to wait, and noted that they agree the state's retirement system needs to be changed.
Disagreements remain over how to adjust it, with critics of the bill saying that it forces teachers to bear the burden of retirement costs while government receives all the benefits.
