MARSP Seeks Long-Term Retiree Healthcare Protections in HB 5803 and SB 911
On July 24, 2024, the Governor signed the School Aid budget, redirecting $670 million from the MPSERS (Michigan Public School Employees Retirement System) healthcare fund to support school operations. This redirection follows over a decade of state efforts to address MPSERS pension and healthcare debt. As a result of these efforts, MPSERS healthcare is now 126.9% funded according to the Fiscal Year 2023 valuation.
To access these redirected funds before the end of the fiscal year (September 30, 2025), lawmakers need to amend the MPSERS Act. The House and Senate have each passed different versions of House Bill 5803 and Senate Bill 911 to make this possible. Both bills currently:
- Amend the MPSERS Act to allow the use of excess retiree healthcare funds in 2025.
- Eliminate the 3% contribution to retiree healthcare for employees hired before September 2012.
- Require steps to cover any new debt if retiree healthcare funding falls below 100% in the future.
The main difference between the bills as they stand today concerns district payroll costs. House Bill 5803 would cut the rate by 5.75% immediately, while Senate Bill 911 phases in the reduction, starting at 3.5% and reaching 5.75% by 2029.
Every member counts as MARSP fights for protections in HB 5803 and SB 911
Throughout the Legislature’s summer break, MARSP continued meeting with key stakeholders and policymakers to include protections for MPSERS funding in HB 5803 and SB 911. We’re working to ensure:
- MPSERS healthcare remains fully funded
- AND any future debt is immediately paid off
Without these protections, we risk undermining efforts in the last decade to improve MPSERS finances.
Your membership helps amplify MARSP’s voice in Lansing during this critical time. Together, we’ll continue fighting for current and future public school retirees!
