Public Act 75 of 2010

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• Introduced by Sen. Jud Gilbert (R) on March 11, 2010, to increase the pension benefits of school employees who have 30 years of “service credits” and choose to retire between July 1, 2010 and Aug. 31, 2010 by 6.7 percent. Eligible employees who do not retire at this time would lose their post-retirement vision and dental insurance benefit. They would also have to pay an additional 3 percent of their salary into the pension fund, but would accumulate no further pension-increasing “service credits” under it, instead receiving contributions to a 401K-type account. New employees would be given a slightly less generous defined-benefit (traditional) pension plan that would pay benefits starting at age 65 rather than 55 under the current system. More details here.
  • Referred to the Senate Appropriations Committee on March 11, 2010.
    • Reported in the Senate on March 25, 2010, with the recommendation that the substitute (S-6) be adopted and that the bill then pass.
  • Substitute offered in the Senate on April 14, 2010, to replace the previous version of the bill with one that does not include an early retirement pension enhancement, but does require additional pension contributions from school employees. This will save $211 million in the next fiscal year, but comes after failed attempts by Senate Republicans to achieve consensus within their caucus on a substitute with additional reforms that would have saved around $480 million. The substitute passed by voice vote in the Senate on April 14, 2010.
• Passed 22 to 16 in the Senate on April 14, 2010, to require school employees to pay an additional 3 percent of their salary into their pension fund. This will save some $211 million in the next fiscal year, and $2.84 billion over 10 years.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on April 15, 2010.
  • Referred to the House Oversight And Investigations Committee on April 15, 2010.
  • Substitute offered by Rep. Mark Meadows (D) on April 27, 2010, to adopt a substitute that is more generous to retiring school employees, and which attaches to the increased pension contributions contained in the Senate version and proposed by Gov. Granholm other provisions sought by the school employee unions. See House-passed version for details. The substitute passed by voice vote in the House on April 27, 2010.
  • Amendment offered by Rep. Mark Meadows (D) on April 27, 2010, to require school employees who earn $18,000 annually to only contribute an additional 1.5 percent to retiree health care expenses in fiscal year 2011, but after the same 3 percent as higher-paid employees. The amendment passed by voice vote in the House on April 27, 2010.
  • Amendment offered by Rep. Lisa Brown (D) on April 27, 2010, to establish as "the intent of the Legislature" that any cost savings from the bill be distributed to around 50 so-called "20j" school districts, which tend to be wealthier ones, with some exceptions. Extra money for these districts was line-item vetoed by Gov. Jennifer from the Fiscal Year 2009-2010 school aid budget. The amendment failed by voice vote in the House on April 27, 2010.
• Passed 59 to 45 in the House on April 27, 2010, to increase school employee contribution to their post-retirement benefits by 3 percent, and use the money to pay for retiree health care benefits, rather than bolster the underfunded pension fund or reduce school district contributions (as passed by the Senate). It would also increase by 13.3 percent the cash pension benefits of certain school employees who retire by July 1 (twice the amount the governor proposed); force all charter school employees into the conventional schools' traditional pension system; and allow some "retired" teachers to collect a pension while continuing to work. Finally, a slightly less generous system for new hires proposed by the Governor is not included in the House version. More details here.
  Who Voted "Yes" and Who Voted "No"
• Received in the Senate on April 27, 2010.
• Failed 12 to 24 in the Senate on April 27, 2010, to concur with a House-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences. The House version increased pension payouts for school employees who retire this year, enrolls charter school employees into the defined benefit pension system, allows some "retired" teachers to collect a pension while continuing to work, earmarks the 3 percent increase in employee contributions to retiree health care expenses rather than into the pension fund, and more.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on May 14, 2010, where members were apppointed to a joint House-Senate conference committee.
• Passed 56 to 45 in the House on May 14, 2010, to adopt a compromise version of the bill reported by a House-Senate conference committee. This would increase the contributions that school employees are required to make to their post-retirement benefits by 3 percent, and deposit this money to an "irrevocable trust fund" to pay for retiree health care benefits (even though these benefits are not considered an enforceable obligation under current law). The bill would also increase by 6.6 percent the cash pension benefits of certain school employees who retire by September 1, 2010 (or 3 percent for some with less time on the job). New employees would be still be enrolled in a defined-benefit (traditional) pension plan, but one that pays benefits starting at age 60 rather than age 55 under the current system. See also House Bill 4073.
  Who Voted "Yes" and Who Voted "No"
• Received in the Senate on May 14, 2010.
• Passed 21 to 14 in the Senate on May 14, 2010, to adopt a compromise version of the bill reported by a House-Senate conference committee. This would increase the contributions that school employees are required to make to their post-retirement benefits by 3 percent, and deposit this money in an "irrevocable trust fund" to pay for retiree health care benefits (even though these benefits are not considered an enforceable obligation under current law). The bill would also increase by 6.6 percent the cash pension benefits of certain school employees who retire by September 1, 2010 (or 3 percent for some with less time on the job). New employees would be still be enrolled in a defined-benefit (traditional) pension plan, but one that pays benefits starting at age 60 rather than age 55 under the current system. See also House Bill 4073.
  Who Voted "Yes" and Who Voted "No"
• Signed by Gov. Jennifer Granholm on May 19, 2010.