MI HB5313

Amends the Michigan General Law on City Incorporation (1909 PA 279) to add new restrictions on pension and retirement benefits for cities with populations exceeding 600,000 or that have discharged $1 billion in pension liabilities through bankruptcy.

Requires that pension benefit calculations for existing employees include only base pay (excluding overtime, bonuses, sick leave payouts, vacation pay, and fringe benefits), with exceptions for service years before January 1, 2015.

Prohibits annual pension payments based solely on investment returns earned by retirement system assets, except as provided in bankruptcy plans for adjustment.

Limits employer contributions for employees hired after July 1, 2023 to either 7% of base pay toward retirement accounts or the same plan terms as a bankruptcy plan for adjustment, and caps health care insurance contributions at 2% of base pay or the state employee contribution rate, whichever is greater.

Requires cities providing retirement benefits to submit annual compliance certifications to the Michigan Financial Review Commission beginning January 1, 2024, and subjects all municipal retirement benefits to the Protecting Local Government Retirement and Benefits Act.

Takes effect only if Senate Bill 686 of the 99th Legislature is enacted.