In an attempt to control escalating costs for pensions and retiree health care, the Republican-controlled State House approved sweeping changes to retirement plans for state employees Thursday, including, effective Jan. 1, an end to guaranteed retiree health care for new employees.

The main bill in the package was approved by a 63-45 vote, mostly along party lines and over the vehement opposition of public employee labor unions. It advances to the Republican-led Senate.

Employees hired before 1997 and covered by the state's defined-benefit pension plans will be allowed to remain in the current pension system, but will be required to contribute 4% (up from 0%) of their wages to retirement. The bill also would eliminate the 3% contribution that state workers have been making toward retiree health care costs.

Retiree health insurance coverage would be eliminated for people hired to work for the state after Jan. 1, 2012, and be replaced with a 401(k)-type system to which the state would contribute a matching payment of up to 2%.

Kurt Weiss, spokesman for the state Department of Technology, Management and Budget, said about $82 million deducted from state employee paychecks under the old, 3% plan was being held in escrow after court rulings found it unconstitutional.

That money will be returned, he said.

If all eligible employees choose to remain in the defined benefit pension plan and make the 4% contribution, state taxpayers would save about $56 million a year, Weiss said.