New School Workers Automatically Enrolled in 401K Starting Feb. 1

According to WILX-TV 10, Gov. Rick Snyder has signed into law a plan to steer more newly hired school employees into a 401(k) only retirement benefit instead of one with a person.

Starting Feb. 1, new school workers will be automatically enrolled in a 401 (k) only plan like what state employees receive.

They could opt out and instead pay more of their salary toward a pension than current school workers do, assuming more of the risk of underfunding.