Introduced
by
To extend for another two years the Dec. 31, 2018 sunset on a law passed in 2012 to allow local governments to borrow money to cover unfunded employee pension liabilities, which is allowed only if the local has closed its traditional “defined benefit” pension system to new employees. The law also allows locals to incur long term debt to pay for future retiree health insurance costs, which unlike pensions are not legally enforceable obligations. This would be the third extension of this deadline.
Referred to the Committee on Finance
Reported without amendment
With the recommendation that the bill pass.
Referred to the Committee on Michigan Competitiveness
Reported without amendment
With the recommendation that the substitute (H-3) be adopted and that the bill then pass.
Passed in the House 103 to 6 (details)
To extend for another two years the Dec. 31, 2018 sunset on a law passed in 2012 to allow local governments to borrow money to cover unfunded employee pension liabilities, which is allowed only if the local has closed its traditional “defined benefit” pension system to new employees. The law also allows locals to incur long term debt to pay for future retiree health insurance costs, which unlike pensions are not legally enforceable obligations. This would be the third extension of this deadline.
Passed in the Senate 38 to 0 (details)
To concur with the House-passed version of the bill.
