Michigan Senate Bill SB0157

Michigan 2023-2024 Regular Session

• Introduced: 3/9/23
• Refer: 3/9/23

Caption

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

Impact

One of the critical impacts of SB 0157 is the potential adjustment of the funding contributions needed to support the retirement systems. The amendments suggest mechanisms for actuarial evaluations to ensure that contribution levels adequately cover the liabilities incurred by employing corrections officers and state police. The amendments would require a separate contribution rate for members in covered positions, ensuring that the actuarial calculations for funding reflect the realities of a changing workforce in law enforcement.

Summary

Senate Bill 0157 proposes amendments to the State Police Retirement Act of 1986. It addresses the membership of corrections officers first hired after a certain date, allowing them the option to purchase service credit for their prior service under the state employee retirement system. This is significant as it enables a broader inclusion of corrections officers within pension benefits, aligning their retirement options more closely with those of state police officers. The bill aims to create a more integrated retirement system for law enforcement personnel across the state.

Contention

While the bill intends to expand benefits for corrections officers, it may raise concerns regarding the financial sustainability of the retirement system. Opponents might argue about the implications of increased liabilities and whether the current state funds can adequately sustain the proposed changes without putting other benefits at risk. Additionally, there might be concerns regarding the potential impact on the unfunded actuarial accrued liabilities that are required to be settled by specific deadlines, which could lead to future budget constraints for state finances.