LEGISLATIVE RETIREMENT

HEALTH CARE BENEFITS

House Bill 4580

Sponsor:  Rep. Robert Dean

Committee:  Government Operations

Complete to 4-9-07

A SUMMARY OF HOUSE BILL 4580 AS INTRODUCED 4-5-07

 The bill would amend the Michigan Legislative Retirement System Act, which applies to state legislators, to specify that a person could only be vested in retiree health benefits if elected to the Legislature before January 1, 2007.

Under current law, a member of Tier 2 (the defined contribution retirement plan that applies generally to legislators elected after March 31, 1997) is vested for purposes of receiving retiree health care benefits after six years of service as a qualified participant.  The six-year requirement would remain in place for members elected prior to January 1, 2007.

MCL 38.1075

FISCAL IMPACT:

The bill would have indeterminate future savings to state government.

                                                                                           Legislative Analyst:   E. Best

                                                                                                  Fiscal Analyst:   Al Valenzio

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.