LANSING, Mich. (AP) — Legislation aimed at reining in retiree benefit costs for Michigan state workers was approved Thursday by the Republican-led House Appropriations Committee.
The measures affecting future state retirees, approved 17-10 along party lines, advances to the House floor.
Employees covered by state pension plans would have to decide whether to remain in the defined benefits plans or convert to a 401(k) system. Workers who choose to remain in the pension plan would have to contribute 4 percent of their compensation to remain in the system.
The bill would eliminate the 3 percent employee contribution that state workers have been making since last year to help cover retiree health care costs. Those contributions, which have been challenged in court cases, would be refunded to workers by mid-2012.