Michigan House Bill HB5328

Michigan 2023-2024 Regular Session

• Introduced: 11/9/23
• Refer: 11/9/23
• Report Pass: 5/22/24
• Engrossed: 9/25/24
• Refer: 10/2/24
• Report Pass: 10/17/24
• Refer: 10/17/24
• Report Pass: 10/23/24
• Enrolled: 10/30/24
• Chaptered: 11/13/24
• Passed: 11/13/24

Caption

Retirement: judges; employee contribution and match; increase. Amends sec. 714 of 1992 PA 234 (MCL 38.2664).

Impact

The modifications introduced by HB5328 are expected to strengthen the financial sustainability of the judges' retirement system, thereby securing benefits for future retirees within the judiciary. By enhancing the contribution structure, this bill seeks not only to benefit the current judges but also to attract prospective qualified nominees by ensuring a competitive retirement package. The adjustments align with a broader movement towards improving public servant pensions and reflect a commitment to upholding the dignity and financial security of judges in Michigan.

Summary

House Bill 5328 aims to amend the current judges' retirement system in Michigan, specifically focusing on employee contributions and employer matching contributions. The bill proposes an increase in the amount that qualified participants can elect to contribute to their Tier 2 retirement account, raising the potential contribution rate from 3% to 5% starting April 10, 2025. Furthermore, it stipulates that the employers of qualified participants will match these contributions, providing additional financial support to the judges' retirement fund and ensuring a more robust pension for those serving in the judiciary.

Sentiment

The sentiment around HB5328 appears to be generally positive among lawmakers with a vested interest in the judiciary and retirement benefits. Support for the bill reflects a growing acknowledgment of the need for sufficient retirement plans for judges, who play a critical role in the state's legal system. The favorable sentiment is echoed by the strong vote during the third reading in the Senate, where the bill passed with a significant majority of 35 to 2, indicating widespread legislative support.

Contention

However, discussions surrounding the bill may still face scrutiny regarding funding mechanisms and equity among different public service sectors when it comes to retirement benefits. Some lawmakers could raise concerns about the adequacy of pension systems for other state employees compared to judges. This highlights a potential divisiveness not within the bill itself but in the context of overall state budget and retirement planning for various public service roles, which could spark debates as the legislation moves forward.