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Proposed state budget could eliminate pensions for new teachers

May 3, 2017

Budget talks in the House and Senate may close Michigan's pension program for new teachers.

Supporters say this would help ease Michigan's growing debt. But others say pension cuts would hurt a profession that's already struggling.

David Crim is with the Michigan Education Association.

"When they go looking to cut teacher pensions, having eliminated healthcare for new teachers, pay has been stagnant around the state, on top of the attacks on the profession, what they're doing makes no sense whatsoever," Crim said.

House and Senate Republicans have tried in the past to replace the teacher pension system with an IRA-style plan.

Crim says the current program, a hybrid of the pension system and a 401(k)-style plan, works well for teachers and shouldn't be eliminated. 

The proposal has been criticized by not only teachers but Democrats and Governor Snyder's administration as well.