By Jarrett Skorup | Michigan Capitol Confidential
LANSING — A Republican-sponsored pension bill that passed the Michigan House adds a significant cost onto employees who work for private companies that contract with school districts while excluding those workers from ever receiving benefits.
“The House version penalizes schools that cut costs by outsourcing with an 11.9 percent penalty for doing so,” said Kristi Flietstra, general counsel for the Professional Educational Services Group.
This “is a penalty imposed on one class of operation (a third party) to fund an unrelated activity of another party (teacher pensions),” Flietstra said.
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