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A new Mackinac Center study shows the 1997 pension reforms for state employees has saved Michigan between $2.3 billion and $4.3 billion, according to The Bay City Times.
“Closing state employees’ traditional pension plan to new employees and placing them in a defined-contribution plan with individual retirement accounts was a considered a dramatic step when the legislation was passed in December 1996,” said Rick Dreyfuss, an adjunct scholar with the Center and an actuary. “But a comparison of the performance of the two plans since then suggests the decision was sound.”
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