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Benefits February 7, 2012
Bill Would Offer University of Wis. System Employees DC Plan
February 7, 2012 (PLANSPONSOR.com) – If passed, a proposal would allow University of Wisconsin System employees the choice to opt into a retirement plan outside the current Wisconsin Retirement System.
Reported by Tara Cantore
The Badger Herald reports, the proposal to offer a defined contribution (DC) plan, which is currently circulating in the Wisconsin Assembly, would allow more mobility for professors.
According to a statement released by Rep. Patricia Strachota, who submitted the proposal, the lack of this type of plan in Wisconsin puts the state at a competitive disadvantage when competing with other states to hire quality staff, reports The Badger Herald. Strachota added that the plan would give the University of Wisconsin System the flexibility it needs to attract new professors who will allow the university to grow, especially since other Big 10 universities have similar options.
Carol Lamp, Wisconsin Retired Educators’ Association (WREA) president, also stressed the importance of waiting before an Employee Trust Funds study is released before supporting the legislation. “We aren’t opposed to the idea,” Lamp told The Badger Herald. “WREA feels strongly that Rep. Strachota should put a hold on this bill until the study is complete.”
The study is scheduled for release by the end of June.
Lamp also added that University of Wisconsin System employees were given an option similar to this in the recent past and voted it down.
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