2018 House Bill 6378 ↩

House Roll Call 673: Passed

To remove a provision of the <a href="https://www.michiganvotes.org/2017-SB-401">2017 school pension reform law</a> that changed how school districts are assessed by the state for catching up on the debt represented by unfunded pension liabilities. The law changed the basis for these assessments from a percentage of their payroll to a percentage of payroll plus “purchased services,” which potentially reduces the incentive for outsourcing non-core servicers to private contractors. House Bill 6378 removes purchased services from the formula. The bill would also create a process for funding retirement benefits that had been promised to some part-time student employees by community colleges that then failed to report the liabilities or fund them, and appropriates $650,000 for this purpose.