MI HB5328

Increases the maximum voluntary employee contribution limit for qualified Tier 2 participants in the judges retirement system from 3% to 5% of salary, effective April 10, 2025.

Requires employers to match employee contributions dollar-for-dollar up to the new 5% limit under the enhanced contribution option.

Allows qualified participants who made a written election under section 701a to contribute up to 6% of salary with full employer matching for a period equal to the time Tier 1 members were unable to contribute due to a temporary restraining order in the Michigan Judges Assn v Treasurer of Michigan case.

Maintains existing employer contribution of 4% of salary and existing 2.0% compensation contributions to the health benefits reserve for plan 1 and plan 2 members.

Becomes effective 91 days after final adjournment of the 2024 Regular Session.