Michigan Senate Bill SB0167

Michigan 2023-2024 Regular Session

• Introduced: 3/9/23
• Refer: 3/9/23
• Report Pass: 9/19/23
• Refer: 9/19/23
• Report Pass: 10/30/24
• Engrossed: 11/7/24
• Refer: 11/7/24
• Report Pass: 12/12/24

Caption

Retirement: state employees; membership in the retirement system of certain law enforcement officers first hired after certain date; provide for, and allow for purchasing service credit for certain law enforcement officers' service under the state employees' retirement system. Amends 1986 PA 182 (MCL 38.1601 - 38.1674) by adding secs. 24c, 24d & 24e. TIE BAR WITH: SB 0165'23, SB 0166'23

Impact

The proposed amendments to the retirement act represent a significant change in how law enforcement personnel can build their retirement benefits. This could potentially impact the recruitment and retention of law enforcement officers by giving them greater flexibility in accumulating retirement benefits. The bill is expected to streamline the process of integrating previously earned credits from the state employees' retirement system into the police retirement system, potentially making the law enforcement career more appealing to new recruits who seek robust retirement benefits.

Summary

Senate Bill 167 aims to amend the Michigan State Police Retirement Act, allowing certain law enforcement officers, specifically those hired after a designated date, to purchase service credit within the state employees' retirement system. This purchase can only be initiated under specific conditions and is subject to actuarial valuations determined by the retirement system's actuary. The bill establishes a deadline of May 30, 2025, after which no new initiatives for service credit purchases will be accepted. Furthermore, there are provisions laid out for the method of payment, allowing for tax-deferred options and additional payment methods as established by the retirement system.

Sentiment

General sentiment surrounding SB 167 appears to be supportive, particularly from law enforcement organizations and unions who advocate for better retirement benefits. There is acknowledgment of the importance of financial security for law enforcement personnel, especially given the demanding nature of their jobs. However, discussions may also highlight concerns about the financial implications for the state's retirement system and the management of pensions for current and future employees.

Contention

Notable points of contention may arise around the decision-making processes regarding the actuarial values and the limits placed on purchasing service credits. Critics could raise questions about the sustainability of the pension system with increasing costs due to additional service credits being purchased, potentially leading to debates over resource allocation and fiscal responsibility. Furthermore, since this bill ties directly to labor agreements, it might provoke discussions about equity among various classes of state employees and their retirement benefits.