Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that amends state school retirement systems in a way that would increase taxpayers's obligations by $1.4 billion in Michigan.

Highlights:

• Amends state school retirement systems in a way that would increase taxpayers's obligations by $1.4 billion in Michigan (Sec. 41).

• Authorizes the legislature to divert savings from pre-funding health care for retired school employees, which is currently $630 million annually, from paying down pension debt in the school retirement system to other purposes (Sec. 41).

• Reduces the required contribution rate the state assesses on school districts to pre-fund pension benefits and pay off pension debts which the state charges districts based on their payroll (Sec. 41).

• Reduces the rate assessed from 20.96 to 15.22 percent (Sec. 41).

• Specifies that the provisions of this bill shall take effect immediately upon passage and approval by the Governor (Sec. 41).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that amends state school retirement systems in a way that would increase taxpayers's obligations by $1.4 billion in Michigan.

Highlights:

• Amends state school retirement systems in a way that would increase taxpayers's obligations by $1.4 billion in Michigan (Sec. 41).

• Authorizes the legislature to divert savings from pre-funding health care for retired school employees, which is currently $630 million annually, from paying down pension debt in the school retirement system to other purposes (Sec. 41).

• Reduces the required contribution rate the state assesses on school districts to pre-fund pension benefits and pay off pension debts which the state charges districts based on their payroll (Sec. 41).

• Reduces the rate assessed from 20.96 to 15.22 percent (Sec. 41).

• Specifies that the provisions of this bill shall take effect immediately upon passage and approval by the Governor (Sec. 41).

Full Bill Text