Michigan 2023-2024 Regular Session

Michigan House Bill HB5398

Introduced
1/16/24  

Caption

Retirement: military; Michigan National Guard retirement benefit; increase. Amends sec. 411 of 1967 PA 150 (MCL 32.811).

Impact

The most significant change proposed in HB 5398 is the adjustment of retirement pay amounts from $600 per year to $900 per year for those who retire at age 62. Furthermore, individuals retiring under other specified conditions will also receive increased benefits once they reach the age of 55. The bill also recognizes the need for adjustments to these amounts based on the Consumer Price Index beginning in 2025, which helps ensure that retirement pay keeps pace with inflation and the cost of living.

Summary

House Bill 5398 is an amendment to the Michigan Military Act that seeks to increase the retirement benefits for individuals who have completed at least 20 years of active service with the National Guard or defense force, or both. The bill specifies eligibility for retirement pay under several circumstances including reaching the age of 62, facing ineligibility due to federal law, physical disqualification, or honorable separation from service. Such specifications aim to provide a clearer pathway for service members to access their entitled retirement benefits.

Contention

While HB 5398 is generally viewed as favorable for service members, as it enhances the financial support for their long service, there may still be points of contention regarding the implementation of these benefits and how they fit within the state's broader budgetary constraints. The adjustments for inflation and the significant increase in pay could prompt debates about state funding priorities, especially in times of economic uncertainty. This emphasizes the ongoing dialogue about supporting veterans while managing state resources effectively.

Companion Bills

No companion bills found.

Previously Filed As

MI SB0355

Retirement: military; Michigan military retirement pay; increase under certain circumstances. Amends sec. 411 of 1967 PA 150 (MCL 32.811).

MI HB4201

Individual income tax: retirement or pension benefits; department of corrections retirement and pension benefits; exempt from income taxes. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

MI HB4578

Individual income tax: retirement or pension benefits; department of corrections retirement and pension benefits; exempt from income taxes. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

MI HB4008

Individual income tax: retirement or pension benefits; 3-tier limitations and restrictions on deduction for retirement or pension benefits; modify. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

MI SB0001

Individual income tax: retirement or pension benefits; limitations and restrictions on deductions of certain retirement or pension benefits and revenue distribution to state school aid fund; revise. Amends secs. 30 & 51 of 1967 PA 281 (MCL 206.30 & 206.51).

MI SB0051

Individual income tax: exemptions; increasing personal exemption, reducing income tax rate, lowering age for unrestricted deduction, and increasing deduction for certain retirement or pension benefits; provide for. Amends secs. 30 & 51 of 1967 PA 281 (MCL 206.30 & 206.51).

MI HB4001

Individual income tax: retirement or pension benefits; limitations and restrictions on deductions of certain retirement or pension benefits, revenue distributions, earned income tax credit, rebate payments, rebate and revitalization and placemaking funds; revise, increase, and provide for. Amends title & secs. 30, 51, 272 & 695 of 1967 PA 281 (MCL 206.30 et seq.) & adds secs. 51h, 476 & 696.

MI SB0040

Employment security: benefits; maximum number of unemployment benefit weeks; increase. Amends sec. 27 of 1936 (Ex Sess) PA 1 (MCL 421.27).

MI HB4575

Individual income tax: deductions; deduction for family leave optimal coverage benefits; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30). TIE BAR WITH: HB 4574'23

MI SB0333

Individual income tax: deductions; deduction for family leave optimal coverage benefits; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30). TIE BAR WITH: SB 0332'23

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