An act to amend 1980 PA 300, entitled “An act to provide a retirement system for the public school employees of this state; to create certain funds for this retirement system; to provide for the creation of a retirement board; to prescribe the powers and duties of the retirement board; to prescribe the powers and duties of certain state departments, agencies, officials, and employees; to authorize and make appropriations for the retirement system; to prescribe penalties and provide remedies; and to repeal acts and parts of acts,” by amending section 81d (MCL 38.1381d), as amended by 2017 PA 92.
House Bill 5021 would amend the Public School Employees Retirement Act to change the default retirement plan for newly qualified participants. There are presently two options, Tier 1 and Tier 2. Tier 1 means the retirement plan available to a member under the act. Tier 2 means the state’s 457 plan established under section 457 of the federal Internal Revenue Code for elective employee contributions and the state’s 401(k) plan established under section 401(k) of the Internal Revenue Code for employer contributions.
Co-sponsored by Reps.
Referred to the Committee on Education
Reported without amendment
Passed in the House 56 to 54 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
Referred to the Committee on Education
Reported without amendment
Referred to the Committee of the Whole
Reported without amendment
1. Amend page 1, line 1, after “subsection” by striking out “(8)” and inserting “(9)”.
2. Amend page 3, line 13, after “(6)” by striking out “A” and inserting “Except as otherwise provided in subsection (7), a”.
3. Amend page 3, following line 24, by inserting:
“(7) If, at the end of a state fiscal year, there is unfunded actuarial accrued liability associated with members described under subsection (6), a qualified participant who first becomes a qualified participant and first works for a reporting unit after the fiscal year who does not make an election for any reason on or before the close of the election period is considered to have made an election to become only a qualified participant in Tier 2.” and renumbering the remaining subsections.
The amendment failed 16 to 19 (details)
Passed in the Senate 21 to 14 (details)
