HB 5954 Summary

• Establishes a special early retirement window for eligible Michigan state employees allowing retirement between July 1, 2010 and October 1, 2010, with a 1.6% multiplier (versus the standard 1.5%) for calculating retirement allowances under section 19j.

• Caps earned service credit at 30 years for retirement allowance calculations for members reaching that threshold on or after October 1, 2010, and requires affected members to transition to Tier 2 and contribute an additional 3% to the employees' savings fund starting October 1, 2010.

• Requires members retiring under section 19j to receive lump-sum leave payouts (accumulated annual, sick, and deferred leave) in 60 equal monthly installments beginning October 1, 2010, rather than as a single payment, with funds paid by appointing authorities rather than the retirement system.

• Allows department directors to request extensions of retirement effective dates to April 1, 2011 with employee and budget director approval, and permits post-retirement option positions for eligible retirants with reduced work schedules (up to 3 years total, maximum 1,040 hours annually).

• Appropriates $1.6 million to the Office of Retirement Services for fiscal year 2010 to administer the changes made by this amendatory act.