2011 House Bill 4701 ↩

House Roll Call 455: Passed

To eliminate the current “defined benefit” post-retirement health insurance system for new state employees, and instead offer a “defined contribution” Health Reimbursement Account (HRA), with the state matching an employee’s deposits up to 2 percent of salary, plus an annual lump sum contribution. Employees hired since 1997 could choose to switch to this system and get a lump-sum contribution of the value of benefits they had already earned. Also, to require state employees hired before 1997 to contribute 4 percent toward their traditional “defined benefit” pensions, or else have their benefit levels “frozen” at the current level, with the state instead making contributions going forward into an employee’s 401(k) account. The bill would also exclude overtime pay from the basis on which the older employees' conventional pension benefits are calculated, and cancel a 3 percent pension contribution required from all employees under a <a href="http://www.michiganvotes.org/2010-SB-1226">2010 law</a>.