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MI HB4647

MI HB4647
Retirement; public school employees; defined contribution only for employees hired after certain date; require, and provide for other general amendments. Amends secs. 5, 41, 81d, 127 & 131 of 1980 PA 300 (MCL 38.1305 et seq.) & adds secs. 21a & 133.


summary

Introduced
05/23/2017
In Committee
06/21/2017
Crossed Over
06/15/2017
Passed
Dead
12/31/2018

Introduced Session

99th Legislature

Bill Summary

A bill to amend 1980 PA 300, entitled "The public school employees retirement act of 1979," by amending sections 5, 41, 41b, 42, 43a, 69, 69c, 69f, 70, 71, 75, 81c, 81d, 108, 127, 131, and 131a (MCL 38.1305, 38.1341, 38.1341b, 38.1342, 38.1343a, 38.1369, 38.1369c, 38.1369f, 38.1370, 38.1371, 38.1375, 38.1381c, 38.1381d, 38.1408, 38.1427, 38.1431, and 38.1431a), sections 5, 42, 43a, 108, and 131 as amended and sections 81d and 131a as added by 2012 PA 300, section 41 as amended by 2016 PA 136, sections 41b, 81c, and 127 as added by 2010 PA 75, sections 69, 69c, and 70 as amended and section 69f as added by 1989 PA 194, section 71 as amended by 1996 PA 268, and section 75 as amended by 2006 PA 617, and by adding sections 79b and 92c.

AI Summary

This bill: Amends the Public School Employees Retirement Act of 1979 to require a defined contribution only retirement plan for public school employees hired after a certain date. The bill makes several changes to the existing retirement system, including establishing separate contribution rates for members hired before and after certain dates, requiring 50/50 cost-sharing of normal costs and unfunded liabilities for members hired after February 1, 2018, and providing for automatic enrollment of qualified participants in the defined contribution plan unless they elect otherwise. The bill also places restrictions on the ability of new members to purchase or transfer service credit, and allows for increases to the regular retirement age based on changes in mortality assumptions. Finally, the bill appropriates $5 million for the administration of the changes.

Committee Categories

Education

Sponsors (1)

Last Action

Referred To Committee On Education (on 06/21/2017)

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