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2009 House Bill 4073: Establish government retiree health benefit obligation

Public Act 77 of 2010

Introduced by Rep. Richard Hammel (D) on January 22, 2009 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.   Official Text and Analysis.
Referred to the House Judiciary Committee on January 22, 2009
Reported in the House on February 25, 2009 With the recommendation that the substitute (H-4) be adopted and that the bill then pass.
Substitute offered in the House on March 4, 2009 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 in the House on March 4, 2009
Substitute offered by Rep. Tonya Schuitmaker (R) on March 4, 2009 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 in the House on March 4, 2009
Passed 67 to 41 in the House on March 4, 2009 (same description)
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.
Received in the Senate on March 5, 2009
Referred to the Senate Appropriations Committee on March 5, 2009
Reported in the Senate on December 19, 2009 With the recommendation that the substitute (S-2) be adopted and that the bill then pass.
Substitute offered in the Senate on May 14, 2010
The substitute passed by voice vote in the Senate on May 14, 2010
Passed 23 to 10 in the Senate on May 14, 2010
Received in the House on May 14, 2010
Passed 77 to 24 in the House on May 14, 2010
Signed by Gov. Jennifer Granholm on May 19, 2010

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