Introduced by Rep. Tim Melton (D) on May 17, 2007, to establish that school employees would become eligible for partial post-retirement health insurance benefits after 10 years of service, and earn 3 percent of the full benefit for each year on the job. In other words, the individual would first be entitled to 30 percent of the post-retirement health benefit after 10 years on the job, and earn 3 percent for each additional year of service. Under current law, school pension eligibility may be established according to a number of standards, all of which are far less stringent than private sector practice. The benefit would be the same as specified under current law, which is 90 percent of the monthly premium for a hospital, medical-surgical, and sick care benefits plan “authorized by the retirement board and the Department of Education.” The bill would only apply to new school employees hired after June 30, 2007.
Referred to the House Education Committee on May 17, 2007.
1) Missed it by this much ... by Mike Hignite on May 22, 2007 I agree that future pensions for public employees needs to be addressed. I recommend doing what everyone in industry is doing. Eliminate defined benefit pensions and replace them with 403 plans (like 401(k) only for non-profits).
Defined benefit plans are cheaper to administer, fixed and finite in scope, and yet still adequate in providing for teacher retirement.
I see no point in adding another pension scheme that is only slightly less beneficial to teachers.
I further suggest that whatever actuarily accrued benefit existing teachers have earned be put into a 403 account and the pension plan be eliminated.
Michigan cannot afford to fund these pension liabilities any more than the big three auto companies can. Reply
2) 2007 House Bill 4797 (Establish “graduated” retirement health benefits for new school employees ) by admin on January 1, 2001 Introduced in the House on May 17, 2007