Introduced
by
To require managers of the state-run school pension system to use a “layered amortization" method for repaying the debt accumulated by failing to contribute enough to meet the system’s pension promises to employees. This requires officials to amortize (pay back) each “layer” of underfunding accumulated in a given period over not more than 10 years. The bill would also permit and require pension managers to assume 6.8% annual growth in pension fund assets when determining the amount needed to make good on future pension promises.
Referred to the Committee on Appropriations
Reported without amendment
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered
The substitute passed by voice vote
Passed in the House 96 to 5 (details)
To establish procedures and standards for managers of the school employee retirement system to select a vendor for the defined-contribution annuity option authorized for retirees by the <a href="https://www.michiganvotes.org/2017-SB-401">2017 pension reform law</a> that largely replaced the perennially underfunded “defined benefit” pension system with one that offers 401k accounts with fairly generous employer contributions, or an annuity to be created later, which this bill now would do.
Referred to the Committee on Appropriations
Passed in the Senate 23 to 8 (details)
