MI SB1360

Effective December 14, 2012, establishes a transition date of February 1, 2013 (first pay period beginning on or after that date) for public school employees to elect new retirement contribution and benefit structures under two tiers.

Qualified members (hired before July 1, 2010 and active as of September 3, 2012) may elect to continue receiving 1.5% accrual on all future service credit or freeze service credit as of the transition date and receive only employer 4% Tier 2 contributions instead of pension accruals.

Members making the election must decide by 5 p.m. EST on January 9, 2013 whether to designate an "attainment date" (end of pay period when member reaches 30 years of service) to switch to reduced 1.25% accrual after that date.

Members not making an affirmative election default to continuing current 1.5% accrual on all future service without the transition option, and are subject to modified health insurance premium provisions.

New employees hired on or after September 4, 2012 receive no employer-paid health insurance premiums and instead receive up to 2% matching Tier 2 contributions and health reimbursement account credits of $1,000-$2,000 based on age and service.