2009 House Bill 4073 / 2010 Public Act 77

Establish government retiree health benefit obligation

Introduced in the House

Jan. 22, 2009

Introduced by Rep. Richard Hammel (D-48)

To create a contractual right of state employees to post-retirement health benefits. Although the state and local governments have said over the years that they would pay these benefits, various courts have ruled that these are not enforceable obligations in the manner that pensions are, and no funding has been set aside to pay them. The bill would establish an irrevocable pre-funding trust fund. It authorizes contributions from state appropriations, employer and employee contriutions, and other sources, but does not require these.

Referred to the Committee on Judiciary

Feb. 25, 2009

Reported without amendment

With the recommendation that the substitute (H-4) be adopted and that the bill then pass.

March 4, 2009

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Substitute offered by Rep. Tonya Schuitmaker (R-80)

To adopt a version that does not create a contractual right of state employees to post-retirement health benefits, but does set up a pre-funding trust fund for amounts the state does pay.

The substitute failed 41 to 67 (details)

Passed in the House 67 to 41 (details)

Received in the Senate

March 5, 2009

Referred to the Committee on Appropriations

Dec. 19, 2009

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

May 14, 2010

Substitute offered

The substitute passed by voice vote

Passed in the Senate 23 to 10 (details)

Received in the House

May 14, 2010

Passed in the House 77 to 24 (details)

Signed by Gov. Jennifer Granholm

May 19, 2010