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MI HB5386
Bill
Status
2/18/2016
Primary Sponsor
Bradford Jacobsen
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AI Summary
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Amends the Public School Employees Retirement Act to add new provisions for employees first hired after June 30, 2016, by a qualified reporting unit (community district), automatically enrolling them in Tier 2 only and prohibiting Tier 1 membership.
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Permits qualified participants hired on or after September 4, 2012, to elect within 75 days of employment to opt out of Tier 1 membership and participate only in Tier 2; this election is irrevocable.
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Establishes that employees who do not make an election within the 75-day window are automatically enrolled in Tier 1 with full eligibility for Tier 1 service credit and retirement allowances.
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Requires Tier 2-only participants to contribute 6% of compensation to their Tier 2 account, with employers matching 50% of the first 6% of contributions.
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Bill effectiveness is conditioned on passage of House Bill 5384 or a related Senate bill in the 98th Legislature.
Legislative Description
Retirement; public school employees; participation in Tier 2 for employees first hired in a community district after a certain date; require. Amends secs. 5, 81d & 131 of 1980 PA 300 (MCL 38.1305 et seq.). TIE BAR WITH: HB 5384'16
Retirement: public school employees
Last Action
Bill Electronically Reproduced 02/18/2016
2/23/2016