The Michigan legislature met last Wednesday but held no votes, so this report describes some bills and votes related to public sector pensions and retirement benefits. The legislature is scheduled to meet next on Sept. 7.

Senate Bill 1101: Repeal 2017 school pension reform “defined benefits” closure

Introduced by Sen. Jim Ananich D-Flint, to repeal a provision of a 2017 school pension reform law that allows newly hired school employees the option of enrolling in either a 401k retirement account, or a pension system that if not properly funded by the state would make enrollees liable for part of the cost of correcting this. Instead, all school employees would be enrolled in the previous defined benefit pension system, which as of Sept. 2021 was $22.4 billion short of the amount needed to meet its benefit promises to retirees. Referred to committee, no further action at this time.

Senate Bill 775: Repeal cap on state employee annual pension increases

Introduced by Sen. Curtis Hertel, Jr. D-East Lansing, to repeal a $300 cap on the annual 3% increase in pension payments collected by state retirees. Referred to committee, no further action at this time.

Senate Bill 906 and House Bill and House Bill 5834: Revise conservation officer pensions

Introduced by Sen. Sean McCann D-Kalamazoo and Rep. William Sowerby D-Clinton Township, respectively, to retroactively make certain state conservation officers who were not eligible for a state pension when they were hired eligible for it now, and authorize a process by which they can purchase “service credits” that entitle an individual to post-retirement pension income, or other benefits of equivalent value. Referred to committee, no further action at this time.

House Bill 4968: Create state pension auditor office

Introduced by Rep. Thomas Albert R-Lowell, to create a government retirement system auditor office within the legislative council that among other things would determine the annual pension fund contributions required to keep pension and other retirement benefit promises to various classes of government employees. The auditor would also produce audits, pension funding analyses and recommendations for each system’s soundness over the next 30 years. Referred to committee, no further action at this time.

House Bill 4602: Require previous legislators pay 20% of their state health benefits cost

Introduced by Rep. Joseph Bellino, Jr. R-Monroe, to place a cap on the value of the post-retirement health care insurance coverage provided to legislators, which was eliminated for those first elected in 2011, but is still collected by individuals who accumulated at least six years in the legislature before January 1, 2013. The bill would require beneficiaries to cover 20% of the insurance premium cost. Referred to committee, no further action at this time.

House Bill 5838: Expand age-based retirement income tax exemption

Introduced by Rep. Matt Hall R-Marshall, to lower from age 67 to age 62 eligibility for certain state income tax exemptions on retirement income. Referred to committee, no further action at this time.

House Bill 5834: Expand conservation officer retirement benefits

Introduced by Rep. William Sowerby D-Clinton Township on February 23, 2022 To make certain state conservation officers who were not eligible for a state pension when they were hired retroactively eligible for it now, and authorize a process by which they can purchase “service credits” that entitle an individual to post-retirement pension income, or other benefits of equivalent value. Referred to committee, no further action at this time.

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Source: MichiganVotes.org, a free, non-partisan website created by the Mackinac Center for Public Policy, providing concise, non-partisan, plain-English descriptions of every bill and vote in the Michigan House and Senate. Please visit www.MichiganVotes.org.