Senate Bill 1040 was the legislation in question. Sen. Pavlov and Sen. Mark Jansen, R- Grand Rapids, championed a version of the bill that would have switched all teachers into defined contribution plans. House Appropriations Chair Chuck Moss, R-Birmingham, and the administration of Gov. Rick Snyder disagreed. They said the switch would be too expensive for the state to immediately make the change.

This argument is based on so-called "transition costs." Pension funds often switch assumptions about how government will pay for the unfunded liabilities of a system. Typically, this accounting change suggests that once the old plan has been closed, government would pay down these liabilities with more cash up front.

However, those who favor closing the system point out that these costs aren't really due to the transition. Regardless of when the change takes place, the cost of the current underfunded plan will have to be addressed.

Yup.  And, it wasn't just Stuart Varney this morning who was talking about the $900 Billion state pension bomb ticking across the nation.  It's been a known fact for JenniRick Snydholm since before he was busy shipping "It's about the drink" campus twits for straw polls on the island and wooing Democrats in the 2010 Primary.