2014 House Bill 5568

House Roll Call 288: Passed

To limit the normal contributions Detroit can make to city employees retirement benefits, but still allow the city to enroll new employees in a "defined benefit" pension system that creates future underfunding risks for taxpayers. The normal contribution caps would be 7 percent for pensions and 2 percent (or the amount the state gives its employees) for a retirement health savings account. The bill also restricts "pension spiking" and "13th check" extra-benefit schemes. It was introduced as a condition for the state giving Detroit $195 million toward its bankruptcy settlement, and originally would have prohibited the city from creating new unfunded liability risks each new hire (giving them defined contribution benefits instead), but that restriction was removed in committee. The remaining provisions take effect after a court-approved post-bankruptcy "workout" period ends in 2023.

85 Yeas / 25 Nays
Republican (43 Yeas / 16 Nays)
Democrat (42 Yeas / 9 Nays)