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 Status | Bill Summary | Our Rationale | Bill Text & History |
|---|---|---|---|---|---|---|
| Senate | ||||||
| SB 0003 | Monitor | Paul Wojno (D) | Introduced and referred to Committee on Finance | 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 |
| SB 0024 | Monitor | Tom Barrett (R) | Introduced and referred to Committee on Finance | 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 |
| SB 0359 | Monitor | Ken Horn (R) | Introduced and referred to committee on Finance | This 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 0418 | Monitor | Curtis Hertel (D) | Introduced and referred to committee on Appropriations | This 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 0467 | Monitor | Jim Runestad (R) | Passed out of committee, on the Senate floor | This 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 726 | Monitor | Dale Zorn (R) | Passed the Senate, referred to House Education Committee | This 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 768 | Monitor | Aric Nesbitt (R) | Vetoed | This 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 1046 | Minitor | Paul Wojno (D) | Introduced and referred to Committee on Finance | Phases 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 4002 | Support | Joseph 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 4188 | Monitor | Thomas Albert (R) | Passed House, referred to Appropriations | This 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 4261 | Monitor | Thomas 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 4263 | Support | Brad Paquette (R) | Passed by House, Passed by Senate Appropriations Committee and awaiting action on the Senate floor | This 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 4375 | Support | Steven Johnson (R) | Passed, House, On Senate Floor | House 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 4490 | Monitor | Angela 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 4734 | Monitor | Steve Marino (R) | On Senate Floor | This 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 4886 | Monitor | Jeff 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 5536 | Support | Lori Stone (D) | Passed by House | This 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 5770 | Monitor | Pat Outman (R) | Introduced, in House Tax Policy | Eliminates 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 5838 | Monitor | Matt 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 |
MARSP's New Advocacy Tool
Contact the Governor
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.