This week, the House voted to approve a Senate bill that would make changes to the Michigan Public School Employees Retirement System (MPSERS). The plan will close the current hybrid plan and enroll school employees hired after February 1, 2018, into a new defined contribution retirement plan. All employees would have the change to opt into a new hybrid plan within a seventy-five-day window. The new 401K plan would include a required 4% employer contribution, plus an option 3% employee contribution that would be matched by the state. The legislation includes a trigger that if the actuarial funded ratio in the hybrid plan falls below 85% for two consecutive years the plan would closed to new employees. The reforms to the system were part of the budget negotiations this year and the budget as passed by the legislature, takes these changes into account.
The legislation will be sent to Governor Rick Snyder for final approval.
Michigan Legislative Consultants is a bipartisan lobbying firm based in Lansing, Michigan. Our team of lobbyists and procurement specialists provide a wide range of services for some of the most respected companies in America. For more on MLC, visit www.mlcmi.com or connect with us on LinkedIn and Twitter.