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MI HB5568
Bill
Status
7/16/2014
Primary Sponsor
Gail Haines
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AI Summary
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Limits pension benefit calculations in cities with population over 600,000 or those that discharged $1 billion in pension liabilities through bankruptcy to base pay only, excluding overtime, bonuses, vacation pay, and sick leave payouts.
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Prohibits additional pension payments based solely on investment returns earned by the retirement system, except as otherwise provided in a bankruptcy plan for adjustment.
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Caps employer contributions for retirement plans at 7% of base pay for employees hired after July 1, 2023, unless a different amount is specified in a bankruptcy adjustment plan.
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Limits employer contributions for retirement health care insurance to 2% of base pay or the state employee contribution rate, whichever is greater, for new employees hired after July 1, 2023.
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Requires affected cities to submit annual compliance certifications to the financial review commission by January 1, 2024, and each January 1 thereafter.
Legislative Description
Cities; home rule; benefits under retirement plans established by a city with a population of more than 600,000 or that has discharged $1,000,000,000.00 in pension liabilities in bankruptcy; modify. Amends sec. 4i of 1909 PA 279 (MCL 117.4i) & adds sec. 4p.
Public employees and officers, compensation and benefits
Last Action
Assigned Pa 183'14 With Immediate Effect
7/16/2014