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House approves state worker retirement contribution

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By Laura Weber

State workers in Michigan may soon be required to contribute more of their salaries to their retirement benefits plans, or choose to change to a 401-K retirement plan. The House approved the changes along nearly party lines.

Republican state Representative Bill Rogers said the state is staring down too many retirement obligations in the future.

"And if we just continue to ignore it that's just not fiscally prudent, that doesn't create any kind of sustainability. I know everybody frequently hears about that with all sorts of things, well it's time we step up to the plate."

Democrats said 401-K plans rely on the strength of the stock market and are too risky for the health and wellness of retirees.

Copyright 2010, MPRN

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