Michigan House Bill HB4305

Michigan 2023-2024 Regular Session

• Introduced: 3/21/23
• Refer: 3/21/23

Caption

Retirement: public school employees; employment of certain retired coaches; modify waiting period. Amends sec. 61 of 1980 PA 300 (MCL 38.1361).

Impact

The proposed changes in HB 4305 aim to clarify the conditions under which retired school employees can return to work without risking their retirement benefits. By allowing certain exceptions, particularly for interscholastic athletics roles, the bill seeks to encourage retired educators to take on coaching positions, thereby providing valuable mentorship and maintaining a vital connection to the education system. Additionally, this may also help address the shortage of coaches in public schools by facilitating the re-employment of retired professionals.

Summary

House Bill 4305 is an amendment to the Public School Employees Retirement Act of 1979, specifically modifying section 61 which governs the retirement allowances of public school employees in Michigan. The bill stipulates that if a retirant is receiving a retirement allowance and is reemployed at a reporting unit, they will forfeit their retirement allowance and health care benefits for the entire month of employment. However, it outlines specific circumstances under which this forfeiture does not apply, such as for employed coaches and officials as long as their earnings are below a certain threshold.

Contention

A notable point of contention surrounding this bill revolves around the implications of reemployment on retirement security. Critics may argue that easing restrictions on reemployment for retirees could lead to financial mismanagement of the retirement fund or encourage a system where educators do not fully sever ties with their profession before retirement. Supporters, conversely, contend that the bill is necessary for the sustainability of athletic programs and for harnessing the expertise of seasoned educators. The discussions in legislative circles will likely focus on balancing the needs of retired employees against the integrity of the retirement system.