Michigan House Bill HB6033

Michigan 2023-2024 Regular Session

• Introduced: 11/7/24
• Refer: 11/7/24

Caption

Retirement: state employees; membership in the retirement system of certain law enforcement officers; provide for. Amends secs. 3, 4, 14 & 70 of 1986 PA 182 (MCL 38.1603 et seq.) & adds secs. 14b & 24c. TIE BAR WITH: HB 6032'24

Impact

One significant aspect of HB 6033 includes the introduction of a 'banked leave time program,' which provides members with additional leave hours through specific pay reductions or concessions. Furthermore, the bill emphasizes a structure whereby members contribute a percentage of their compensation to their retirement accounts, backing up the funding of future benefits. The proposed changes aim to address the liabilities associated with unfunded accrued pension liabilities, thereby fostering a more sustainable financial approach towards retirement benefits for law enforcement officers in Michigan.

Summary

House Bill 6033 aims to amend the State Police Retirement Act of 1986 by modifying existing definitions and adding new provisions related to the retirement system for certain law enforcement officers. The bill proposes changes to sections concerning 'banked leave time', 'credited service', and establishes contribution rates for members employed in covered positions within the state police. The adjustments are intended to streamline the pension structure while ensuring that it reflects the funding needs and actuarial standards set by the retirement board. The amendments focus on ensuring that the retirement system can remain solvent and provide adequate benefits to officers upon retirement.

Contention

While the bill seeks to improve the financial sustainability of the state police retirement system, it may encounter opposition concerning the contribution requirements, particularly regarding how they might affect members' take-home pay. Some stakeholders may argue that imposing a mandatory contribution rate could detract from the overall compensation of law enforcement personnel, which could be a point of contention during legislative discussions. Additionally, the bill's tie-bar with other proposed legislation signifies that its passage may be conditional on the enactment of companion legislation, further complicating its path forward.