A bill to create incentives for teachers to retire was signed into law by Gov. Jennifer Granholm on Wednesday.
The legislation will increase the pension multiplier for teachers already eligible to retire and for teachers whose years of service and age total 80.
The pension multiplier determines the monthly pension received based on salary and time employed.
Teachers have until June 11 to decide whether they will accept the incentive.
About 55,000 teachers qualify for retirement under the package, said Bethany Wicksall, a fiscal analyst for the House Fiscal Agency.
This could create nearly 25,000 in-state jobs for MSU education students and other young graduates.
It also will save local school districts $670 million next year and about $3.15 billion over the next ten years, Wicksall said.
Liz Boyd, spokesperson for Granholm, declined to comment Wednesday and referred to an official statement.
“These critical reforms will save more than $3 billion for school districts over the next decade and ensure that we are able to fund education at a level that will help prepare students for success in the 21st century,” Granholm said in the statement. “It also will create thousands of job opportunities for new college graduates eager to teach in Michigan.”
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