Signed by Governor Jennifer Granholm

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that expands state employee retirement eligibility, requires state employees to contribute 3 percent of their compensation towards a trust for the payment of retirement health care benefits, and makes other changes to existing law regarding state employee retirement.

Highlights:

-Allows a state employee to retire and receive a retirement allowance computed under MCL 38.19j if he or she meets all of the following requirements (Sec. 19j):

-The employee's combined age and length of credited service is equal to or greater than 80 years, the employee's length of credited service is equal to or greater than 30 years, or the employee is eligible to retire under MCL 38.19 with a retirement allowance that is not subject to reduction due to the person having less than 30 years credited service pursuant to section MCL 38.19(2); -The employee occupies a position in the classified state civil service, has classified state civil service status, or is an employee of the legislative branch without classified civil service status, an employee of the judicial branch, or an unclassified state employee not within the classified state civil service; -The employee is not eligible for a supplemental early retirement pursuant to MCL 38.46 as an employee of a qualifying position, including certain corrections employees, forensics security employees, and forensics supervisors, or the employee is eligible for the supplemental early retirement as such and the employee meets the eligibility requirements of MCL 38.19j(6); -The employee is not a conservation officer as described in MCL 38.48, or the employee is such a conservation officer and he or she meets the eligibility requirements of MCL 38.19j(6); -The employee was employed by this state or the legislature within the 6-month period ending on the first day of the incentivized retirement application period, or the employee was laid off or granted an approved leave of absence from state employment within the 12-month period ending on the first day of the incentivized retirement application period; or -The employee executes and files an application in a manner determined by the retirement system with the retirement board, during the incentivized retirement application period, stating a retirement allowance effective date that is on or after November 1, 2010 but not later than January 1, 2011.

-Requires each state employee, beginning with the first pay date after November 1, 2010 and ending September 30, 2013, to contribute 3 percent of his or her compensation into an irrevocable trust established under the "Public Employee Retirement Health Care Funding Act" (MCL 38.2731 to 38.2747) for the payment of retirement health care benefits (Sec. 35). -Specifies that a state employee with a retirement allowance effective date on or before January 1, 2011 who retires in accordance with MCL 38.19j shall receive a retirement allowance equal to the employee's number of years and fraction of a year of credited service multiplied by 1.6 percent of his or her final average compensation up to $90,000, and the remaining portion of the retirement allowance, if applicable, shall be equal to the employee's number of years and fraction of a year of credited service multiplied by 1.5 percent of the portion of final average compensation over $90,000 (Sec. 19j). -Specifies that a state employee with a retirement allowance effective date on or before January 1, 2011 who is eligible to retire in accordance with MCL 38.19j because his or her combined age and length of credited service is equal to or greater than 80 years or because his or her length of credited service is equal to or greater than 30 years, upon his or her retirement, shall receive an allowance equal to the his or her number of years and fraction of a year of credited service multiplied by 1.55 percent of his or her final average compensation up to $90,000 and the remaining portion of the retirement allowance, if applicable, shall be equal to his or her number of years and fraction of a year of credited service multiplied by 1.5 percent of the portion of final average compensation over $90,000 (Sec. 19j). -This is a substitute bill sponsored by Rep. George Cushingberry Jr.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that expands state employee retirement eligibility, requires state employees to contribute 3 percent of their compensation towards a trust for the payment of retirement health care benefits, and makes other changes to existing law regarding state employee retirement.

Highlights:

-Allows a state employee to retire and receive a retirement allowance computed under MCL 38.19j if he or she meets all of the following requirements (Sec. 19j):

-The employee's combined age and length of credited service is equal to or greater than 80 years, the employee's length of credited service is equal to or greater than 30 years, or the employee is eligible to retire under MCL 38.19 with a retirement allowance that is not subject to reduction due to the person having less than 30 years credited service pursuant to section MCL 38.19(2); -The employee occupies a position in the classified state civil service, has classified state civil service status, or is an employee of the legislative branch without classified civil service status, an employee of the judicial branch, or an unclassified state employee not within the classified state civil service; -The employee is not eligible for a supplemental early retirement pursuant to MCL 38.46 as an employee of a qualifying position, including certain corrections employees, forensics security employees, and forensics supervisors, or the employee is eligible for the supplemental early retirement as such and the employee meets the eligibility requirements of MCL 38.19j(6); -The employee is not a conservation officer as described in MCL 38.48, or the employee is such a conservation officer and he or she meets the eligibility requirements of MCL 38.19j(6); -The employee was employed by this state or the legislature within the 6-month period ending on the first day of the incentivized retirement application period, or the employee was laid off or granted an approved leave of absence from state employment within the 12-month period ending on the first day of the incentivized retirement application period; or -The employee executes and files an application in a manner determined by the retirement system with the retirement board, during the incentivized retirement application period, stating a retirement allowance effective date that is on or after November 1, 2010 but not later than January 1, 2011.

-Requires each state employee, beginning with the first pay date after November 1, 2010 and ending September 30, 2013, to contribute 3 percent of his or her compensation into an irrevocable trust established under the "Public Employee Retirement Health Care Funding Act" (MCL 38.2731 to 38.2747) for the payment of retirement health care benefits (Sec. 35). -Specifies that a state employee with a retirement allowance effective date on or before January 1, 2011 who retires in accordance with MCL 38.19j shall receive a retirement allowance equal to the employee's number of years and fraction of a year of credited service multiplied by 1.6 percent of his or her final average compensation up to $90,000, and the remaining portion of the retirement allowance, if applicable, shall be equal to the employee's number of years and fraction of a year of credited service multiplied by 1.5 percent of the portion of final average compensation over $90,000 (Sec. 19j). -Specifies that a state employee with a retirement allowance effective date on or before January 1, 2011 who is eligible to retire in accordance with MCL 38.19j because his or her combined age and length of credited service is equal to or greater than 80 years or because his or her length of credited service is equal to or greater than 30 years, upon his or her retirement, shall receive an allowance equal to the his or her number of years and fraction of a year of credited service multiplied by 1.55 percent of his or her final average compensation up to $90,000 and the remaining portion of the retirement allowance, if applicable, shall be equal to his or her number of years and fraction of a year of credited service multiplied by 1.5 percent of the portion of final average compensation over $90,000 (Sec. 19j). -This is a substitute bill sponsored by Rep. George Cushingberry Jr.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that requires tier 1 state employees to contribute 3% of their compensation to the retirement system beginning on October 1, 2010.

Highlights:

-Establishes that, for a former qualified participant who commenced state employment on or after April 1, 2010, the portion of the health insurance coverage premium paid by Michigan shall be equal to the product of 3% and the former qualified participant's years of service, up to 30 years, but shall not exceed the lesser of the portion of the health insurance coverage premiums payable by this state for a retirant, his or her beneficiary, and his or her dependents (Sec. 68).

Full Bill Text