Advocacy

Bills we are watching

At MARSP, we are dedicated to advocating for retired public school employees. 

In addition to monitoring the bills listed below, we are also monitoring the budget process of the pension and healthcare funding of Michigan retired school personnel.  As we continue to learn more about the legislative landscape in Michigan we will inform our members.  To ensure you are receiving timely updates from us please provide us with your email address by emailing staff@marsp.org.

MARSP Legislative Status Report

2021-22 Legislative Session
Bill
Number
MARSP’s
position
Bill
Sponsor(s)
Bill StatusBill
Summary
Our
Rationale
Bill Text &
History
Senate
SB 0003MonitorPaul Wojno (D)Introduced and referred to Committee on FinanceThis bill would affect anyone who was retired and receiving a pension as of January 1, 2012, starting next year their pension tax treatment reverts back to the way it was treated pre-pension tax. MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
SB 0024MonitorTom Barrett (R)Introduced and referred to Committee on FinanceThis bill would affect anyone who was retired and receiving a pension as of January 1, 2012, starting next year their pension tax treatment reverts back to the way it was treated pre-pension tax. MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
SB 0359MonitorKen Horn (R)Introduced and referred to committee on FinanceThis bill would amend Michigan’s income tax deduction to allow all residents 67 or older a deduction against all forms of income. MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
SB 0418MonitorCurtis Hertel (D)Introduced and referred to committee on AppropriationsThis bill would amend sec. 68 of 1980 PA 300 and allow active public school employees to accrue two years of service credits for each year worked during certain conditions, including but not limited to the recent COVID-19 pandemic orders. MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
SB 0467MonitorJim Runestad (R)Passed out of committee, on the Senate floorThis bill creates a $25,000 (single) and $50,000 (joint) deduction at age 67 for all retirement income and indexes the amount to the Consumer Price Index going forward.MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
SB 726MonitorDale Zorn (R)Passed the Senate, referred to House Education CommitteeThis bill would allow a public school retiree to return to work as a substitute teacher after 2 months apposed to one year. MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
SB 768MonitorAric Nesbitt (R)VetoedThis bill would effect 1)) A person 67 years of age would be eligible for a deduction against all types of income of $30,000 for a single individual income tax return or $60,000 for a joint return (and adjusted for inflation annually thereafter 2)) Reduce the individual income tax rate from 4.25% to 3.9%. 3)) Allow a taxpayer to claim a nonrefundable credit against the individual income tax of $500 for each qualified dependent of the taxpayer. 4)) Reduce the corporate income tax rate from 6.0% to 3.9%.MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
SB 1046MinitorPaul Wojno (D)Introduced and referred to Committee on FinancePhases out over four years 2011 changes to taxation of retirement income and provides beneficial treatment of spousal retirement income for joint filers.MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
House Bills
HB 4002SupportJoseph Bellino (R)Introduced and refereed to Committee on Tax. This bill would affect anyone who was retired and receiving a pension as of January 1, 2012, starting next year their pension tax treatment reverts back to the way it was treated pre-pension tax. MARSP has submitted formal support of this bill and will continue to work with Rep. Bellino.Click here for current bill status
HB 4188MonitorThomas Albert (R)Passed House, referred to AppropriationsThis bill makes two major revisions to MPSERS. First, it would revise how the state calculates any new unfunded accrued liability (UAL) In MPSERS. Currently the UAL is calculated based on a 30-year amortization and is scheduled to be repaid in 2038.MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
HB 4261MonitorThomas Albert (R)Introduced and referred to Committee on Appropriations. This bill amends the Public School Employees Retirement Act to require that the pension and retiree health care payroll growth assumption rate for a reporting unit be 2.25% for fiscal year (FY) 2021-22. For the subsequent fiscal years, the bill would retain the current requirement that the payroll growth assumption be reduced annually by 50 basis points until the rate is zero.MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
HB 4263SupportBrad Paquette (R)Passed by House, Passed by Senate Appropriations Committee and awaiting action on the Senate floorThis bill amends the Public School Employees Retirement Act to adopt layered amortization, reduces the time frame over which a deficiency in the actuarially determined contribution must be paid, requires that the most recent mortality tables provided by the Actuarial Standards Board be used and implements a reduced cap for the assumed rate of return and discount rate.MARSP has submitted formal support of this bill and will continue to work with Rep. Paquette.Click here for current bill status
HB 4375SupportSteven Johnson (R)Passed, House, On Senate FloorHouse Bill 4375 Amends sec. 61 of 1980 PA 300, which requires a school district to pay the unfunded actuarial accrued liability associated with employment of a retired substitute teacher. This bill would eliminate this requirement and extend the sunset for certain retirees reemployed by or at a school district without forfeiting his or her retirement allowance. MARSP has submitted formal support of this bill and will continue to work with Rep. Johnson.Click here for current bill status
HB 4490MonitorAngela Witwer (D)Introduced and referred to Committee on Tax Policy.This bill would affect anyone who was retired and receiving a pension as of January 1, 2012, starting next year their pension tax treatment reverts back to the way it was treated pre-pension tax. MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
HB 4734MonitorSteve Marino (R)On Senate FloorThis bill would expand annuity options for public school employees.MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
HB 4886MonitorJeff Yaroch (R)Introduced and referred to Committee on Tax Policy.This bill would effect anyone who was retired and receiving a pension as of January 1, 2012, starting next year their pension tax treatment reverts back to the way it was treated pre-pension tax.MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
HB 5536SupportLori Stone (D)Passed by HouseThis would amend the Public School Employees Retirement Act to require the Office of Retirement Services to prepare reports on the number of such retirees who are employed at reporting units during specified periods.MARSP has submitted formal support of this bill and will continue to work with Rep. Stone.Click here for current bill status
HB 5770MonitorPat Outman (R)Introduced, in House Tax PolicyEliminates restrictions on deductibility of retirement income, and repeals changes to taxation of retirement income enacted in 2011.MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status
HB 5838MonitorMatt Hall (R)Reviewed and passed by the House Tax Policy Committee.This bill would reduce the state income tax rate from 4.25% to 3.90% and allow an increased exemption of an additional $20,000 for a single return and $40,000 for a joint return for taxpayers 62 and older on retirement income.MARSP is currently monitoring this bill and will take further action if necessary.Click here for current bill status

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Voluntary Benefit Defense Fund

VBDF contributions fight for benefits

The Voluntary Benefit Defense Fund (VBDF) is used to initiate and/or participate in legal battles that may be necessary to protect Michigan school retirees’ benefits over the next few years.

To date, the fund has been used to educate legislators regarding defined contribution and graded premium insurance subsidy legislation; to research and investigate defined contribution and other plans in other states; to purchase the software needed to provide an effective grassroots network; to provide written information to legislators; and other activities necessary to the protection of school retiree benefits.