Retirement: public school employees; defined benefit plan and retiree health for new hires and election option for current employees; provide for. Amends secs. 4, 5, 43a, 81d & 91a of 1980 PA 300 (MCL 38.1304 et seq.) & adds secs. 69h, 81e & 81f.
Impact
The bill's provisions include a shift towards a more equitable participation model, mandating that contributions for unfunded actuarial accrued liabilities be shared equally between employers and employees. This alteration could have significant implications for budgeting and financial planning within school districts. As a result, it also aims to encourage fiscal responsibility while ensuring the sustainability of the retirement system by requiring more robust funding levels as indicated by actuarial studies.
Summary
House Bill 6060 proposes amendments to the 1980 PA 300, known as 'The Public School Employees Retirement Act of 1979'. This legislation seeks to modify the retirement benefit structure for public school employees in Michigan, specifically concerning contribution rates and service credit purchase options for new and existing members. A notable change introduced by HB6060 is the establishment of separate contribution rates based on the membership tier, aiming to address funding challenges faced by the retirement system.
Sentiment
The reception of House Bill 6060 among stakeholders has been mixed. Supporters assert that the adjustments are essential for stabilizing the retirement fund and ensuring that benefits remain viable for future employees. Conversely, opponents raise concerns about the impact on employees, especially regarding potential increases in personal financial burden due to higher contribution rates and changes in service credit calculations. This debate highlights the tension between fund sustainability and employee welfare.
Contention
Key points of contention surrounding HB6060 include the balance between employer and employee contributions, the management of service credit for retiring employees, and the future viability of the pension system under new parameters. Critics argue that while the bill intends to create a fair system, it may inadvertently disadvantage long-serving employees by altering the terms of their retirement benefits. These discussions underscore the need for careful consideration of how changes to retirement laws affect both fiscal health and employee morale.
Retirement: defined benefit; defined benefit plan and retiree health for new hires and election option for current employees; provide for. Amends secs. 1i, 13, 64 & 68 of 1943 PA 240 (MCL 38.1i et seq.) & adds secs. 19k & 50b.
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
Retirement: state police; membership in the retirement system of a corrections officer first hired after certain date; provide for, and allow for purchasing service credit for certain corrections officers' service under the state employees' retirement system. Amends secs. 3, 4, 14 & 70 of 1986 PA 182 (MCL 38.1603 et seq.) & adds secs. 14b & 24c. TIE BAR WITH: SB 0156'23
Retirement: state police; membership in the retirement system of a corrections officer first hired after certain date; provide for, and allow for purchasing service credit for certain corrections officers' service under the state employees' retirement system. Amends secs. 3, 4, 14 & 70 of 1986 PA 182 (MCL 38.1603 et seq.) & adds secs. 14b & 24c. TIE BAR WITH: SB 0047'25
Retirement: public school employees; unfunded actuarial accrued liability contribution amount for a university reporting unit; modify. Amends sec. 41 of 1980 PA 300 (MCL 38.1341).
Permits certain PERS members to collect pension while earning salary; makes certain local administrators and prosecutors eligible for PERS membership; permits State employees not covered by collective negotiations to enroll in negotiated health plans.
Permits certain PERS members to collect pension while earning salary; makes certain local administrators and prosecutors eligible for PERS membership; permits State employees not covered by collective negotiations to enroll in negotiated health plans.
Provides certain health care benefits to surviving dependents of accidental disability retiree who participated in 9/11 WTC rescue, recovery, or cleanup operations; clarifies eligibility criteria for recalculation of retirement allowance for such participation.