LANSING, Mich. (Michigan News Source) – A new law eliminates a 3% contribution that Michigan teachers pay towards a state retirement fund (MPSERS).
Gov. Gretchen Whitmer signed the legislation that passed along party lines late last week. Democrats called it “fiscally responsible” while Republicans say it’s a “raid” on teacher’s retirement.
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State Rep. Matt Koleszar (D-Plymouth), a former teacher, said he is “proud to see my bill put an end to overpayment into our school’s employee retirement system.”
“This legislation returns approximately $600 million back to schools — that’s money going directly into classrooms and back to teachers, where it belongs,” Koleszar said. “My fiscally responsible bill will give back funds to schools to put toward their unique needs.”
However, State Rep. Joe Aragona (R-Clinton Township) disagrees. “Democrats are taking the previously planned $670 million payment and diverting it elsewhere,” he said. “I miss having an accountant for a governor,” Rep. Aragona added, referring to former Gov. Rick Snyder.
State Rep. Luke Meerman (R-Coopersville) agrees with his colleague. He said the new law “raids” teacher pensions to “to bankroll non-essential special projects.”
“Pillaging public teacher’s retirement accounts to fund frivolous government expansions, and unnecessary programs, is unacceptable. And creates a mess for the next generation to clean-up,” Rep. Meerman added.
The new law applies to teachers hired before Sept. 4, 2012.
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