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Mackinac Center for Public Policy
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2011 Senate Bill 683: Pre-fund (optional) state retiree health benefits

Public Act 64 of 2012

  1. Introduced by Sen. Roger Kahn (R) on September 20, 2011, to provide a template or "place holder" for a potential supplemental multidepartment appropriation for Fiscal Year 2011-2012.This bill contains no appropriations, but may be amended at a later date to include them.
    • Referred to the Senate Appropriations Committee on September 20, 2011.
    • Substitute offered in the Senate on February 16, 2012, to replace the previous version of the bill with one with actual appropriations. The substitute passed by voice vote in the Senate on February 16, 2012.
  2. Passed 36 to 0 in the Senate on February 21, 2012, to appropriate $250.9 million to "pre-fund" optional post-retirement health insurance benefits the legislature has chosen to give state government retirees. Under current law, these benefits are paid each year out of regular state government revenue. Unlike pensions, the Supreme Court has ruled these are not "accrued benefits" and so may be eliminated or cut at any time; former employees who get them are still eligible for Medicare at age 65.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the House on February 21, 2012.
    • Referred to the House Appropriations Committee on February 21, 2012.
      • Reported in the House on February 29, 2012, with the recommendation that the substitute (H-2) be adopted and that the bill then pass.
    • Substitute offered in the House on March 8, 2012. The substitute passed by voice vote in the House on March 8, 2012.
    • Amendment offered by Rep. Ellen Lipton (D) on March 8, 2012, to automatically transfer any unspent money in the state "general fund" to the state "school aid fund" at the end of the fiscal year. The amendment failed by voice vote in the House on March 8, 2012.
    • Amendment offered by Rep. Chuck Moss (R) on March 8, 2012, to revise details of fund transfers specified in the bill. The amendment passed by voice vote in the House on March 8, 2012.
  4. Passed 109 to 0 in the House on March 13, 2012, to appropriate $250.9 million to "pre-fund" optional post-retirement health insurance benefits the legislature has chosen to give state government retirees. Under current law, these benefits are paid each year out of regular state government revenue. Unlike pensions, the Supreme Court has ruled these are not "accrued benefits" and so may be eliminated or cut at any time; former employees who get them are still eligible for Medicare at age 65.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the Senate on March 14, 2012.
  6. Passed 38 to 0 in the Senate on March 14, 2012, to concur with the House-passed version of the bill.
    Who Voted "Yes" and Who Voted "No"

  7. Signed by Gov. Rick Snyder on March 27, 2012.

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