Michigan’s governor and state budget director are requesting state lawmakers table for now a proposal to close the defined benefit plan in the $37.7 billion Michigan Public School Employee Retirement System, Lansing, and to open a new defined contribution plan.
A bill containing various reforms to reduce liabilities in the pension fund passed the Michigan Senate on May 17. One of the last items added to the bill was a provision closing the existing hybrid defined benefit plan and opening a new defined contribution plan, according to Kurt Weiss, state budget office spokesman.
Both Gov. Rick Snyder and Budget Director John Nixon support the bill but are requesting at least six months to analyze the cost of moving to a defined contribution plan.
Mr. Weiss said Messrs. Snyder and Nixon are anticipating a deal will be reached by Thursday.