2007 House Bill 4800 ↩

Senate Roll Call 392: Passed

To repeal a provision of the state employee pension law that allows an employee to “retire,” start collecting a pension, and then return to work for state either directly or through a contractual arrangement with a third party, collecting a wage or salary while simultaneously collecting pension benefits. The bill would suspend pension payments while an individual worked for the state, and also suspend post-retirement health insurance benefits if the person was eligible for employer-sponsored coverage, or Medicare (the federal health plan for seniors). Passage of the bill occurred as part of a deal to avoid reducing state spending in the 2007-2008 Fiscal Year by imposing $1.5 billion in tax increases, including an increase in the state income tax from 3.9 percent to 4.35 percent (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237024">House Bill 5194</a>) and imposing a 6 percent tax on many personal and business services (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237025">House Bill 5198</a>).