Michigan House Bill HB4752

Michigan 2023-2024 Regular Session

• Introduced: 6/14/23
• Refer: 6/14/23
• Report Pass: 6/27/23
• Engrossed: 6/28/23
• Refer: 6/28/23
• Report Pass: 9/20/23
• Refer: 9/20/23
• Report Pass: 9/27/23
• Enrolled: 9/28/23
• Chaptered: 10/10/23
• Passed: 10/10/23

Caption

Retirement: public school employees; employment of retirant without forfeiting the retirant's retirement allowance for retirant earning less than a certain dollar amount; allow. Amends sec. 61 of 1980 PA 300 (MCL 38.1361).

Impact

The implications of HB 4752 on state laws are notable, as it modifies the framework established under 1980 PA 300, which provided a retirement system for public school employees in Michigan. The legislation allows retirees to engage in employment while retaining their health care benefits under the retirement system if they meet certain criteria like a bona fide termination of employment and not exceeding a specific income threshold of $15,100. This reform acknowledges the need for retired educators to remain active in their communities without jeopardizing their financial security.

Summary

House Bill 4752, passed by the Michigan Legislature, amends the state's law on public school employees' retirement allowances. The bill allows retired public school employees to accept employment without forfeiting their retirement benefits if they meet specific conditions. Previously, retirees would lose their retirement allowance upon becoming employed with a reporting unit, which significantly affected their ability to find work during retirement. This adjustment aims to provide more flexibility for retired educators who wish to contribute to the workforce without facing financial penalties regarding their retirement allowances.

Sentiment

Public sentiment regarding HB 4752 appears largely positive, with many stakeholders recognizing the need for adaptability in the changing educational environment. Supporters argue that this bill enhances opportunities for retirees to supplement their income and remain engaged professionally, while opponents may worry about implications for fund viability. However, given the overwhelming vote of 37 to 1 during Senate approval, it reflects strong legislative support and confidence in its utility.

Contention

Notable points of contention surrounding the bill involve the conditions under which retirees can maintain their benefits. Critics may point to concerns about the potential for abuse of the system, particularly regarding retirees returning to high-income positions. Nonetheless, the bill includes protective measures through specific income caps and mandates for monitoring employment to mitigate such risks. Overall, HB 4752 is designed to strike a balance between supporting retired educators' re-entry into the workforce and ensuring the integrity of the retirement system.