House approves state worker retirement contribution
Michigan state workers may soon be required to contribute four percent of their salaries into their retirement benefit plans, or choose to convert their retirement benefits to a 401-K plan.
That’s according to a bill approved by the state House.
Democratic state Representative Brandon Dillon said the proposal puts the health and wellness of future retirees at risk.
"We should be looking at ways to expand access to health care, whether in the public or private sector, and the reality is this bill is going to make people’s health care and the ability to get treatment essentially based on the stock market, which we know in the past 10 years has been pretty tough, and I just don’t think that’s the right direction to go," said Dillon.
State employees currently contribute three percent of their salaries to their retirement benefits plans.
Republicans say the current retirement plan is not financially sustainable with too many retirement obligations going into the future.