HB 6074 Summary

• Establishes the "Local Unit of Government Retirement Act" to regulate retirement health benefits offered by local government units (villages, cities, townships, counties, road agencies, and authorities).

• Effective May 1, 2017, limits local governments to paying no more than 80% of annual retirement health benefit costs for employees hired before that date, with exceptions for Medicare-eligible retirees and those with prior collective bargaining agreements protecting vested benefits.

• For employees hired after April 30, 2017, limits local government contributions to retirement health benefits to 2% of base pay deposited in a tax-deferred account.

• Voids any contracts or agreements entered after enactment that conflict with the act's requirements and prohibits offering retirement health benefits beyond those specified in the act.

• Authorizes the Attorney General or local residents to pursue civil enforcement actions; allows courts to impose civil fines of $5,000 to $12,500 for willful noncompliance, with funds deposited in the state school aid fund.