APRIL 26th NEWS - Michigan House proposes NEW, IMPROVED Retirement Bill

The State House of Representatives was busy last week working on the “H-4” bill. The “H-4” Bill is the House’s version of Senate Bill 1227.

This bill has changed DRAMATICALLY from the Senate Bill in many important ways. The House adjourned on Thursday and is expected to return tomorrow, Tuesday, April 27th. It may come up for a vote at that time.

The details:
1) While it would still require all school employees to contribute an additional 3% of salary avoe what they are currently paying into retirement funds, this bill would place that 3% into an irrevocable trust for the purpose of funding retirement health benefits and contains language creating a contractual right to retirement benefits.
2) Places all Public School Academy employees and other third party contracted employees working in a school district into MPSERS effective July 1, 2010. (This is excellent news for privatized groups!)
3) The bill PROVIDES RETIRMENT INCENTIVES AS FOLLOWS:
a. Someone who retires prior to July 1, 2010 would receive a 1.7% multiplier (an extra .2%)
b. Someone who retires between July 1, 2010 and October 1, 2010 would receive a 1.6% multiplier.
*** Can not exceed $114,000 Final Average Compensation
c. Provides for a phased-in retirement with the ability to work up to 50% of previous hours
d. Easier requirements for those on disability leave to qualify for insurance.

ALSO:
1) The 30 year cap on accumulated service is removed. NO CAP.
2) The “hybrid” retirement plan for new employees is removed.
3) The loss of dental and vision insurance for future retires is GONE.

The MEA supports this version of the bill. Before it can become law, it must be reconciled with the Senate version of the bill!