MARSP Legislative Status Report
2017-18 Legislative Session| Bill Number | MARSP's position | Bill Sponsor(s) | Bill Summary | Our Rationale | Bill Text & History |
| Senate | |||||
| SB 401 (now Public Act 92 of 2017) | Oppose | Phil Pavlov (R) | Senate Bill 401 would close out the MPSERS hybrid & defined benefit plan to new hires. | This bill would amend the MPSERS Act to require that newly hired public school employees no longer have a choice between a Hybrid/Defined Benefit plan and Defined Contribution plan. They will only have the option of a Defined Contribution plan. MARSP opposes this bill as MARSP opposes any legislation that removes members from paying into the MPSERS system. In addition, MARSP opposes this bill as it would also force school personnel to become financial managers of their own retirement accounts. Most school employees are not trained financial managers and will not be able to equitably fund their retirement in a defined contribution plan alone, due to excessive administrative costs and loss of value from the pooling of assets in a defined benefit plan. This legislation would also negatively impact the interest of those who would choose a career in the education field. | Click here for current bill status |
| House | |||||
| HB 4422 (now Public Act 141 of 2018) | Support | Holly Hughes (R) | House Bill 4422 would allow certain retirees to work without losing retirement benefits while providing certain services to schools in an identified critical shortage discipline or as a substitute teacher, instructional coach or school improvement facilitator. These provisions currently are included in the Act with a sunset of July 1, 2018; the bill would remove the sunsets and revise additional conditions pertaining to substitute teachers. | MARSP supports HB 4422 as it allows certain retirees to work without losing retirement benefits. Additionally, previously passed legislation sunsetted each of the provisions as of July 1, 2014. Subsequently, PA 219 of 2015 (HB 4059) extended the sunsets to July 1, 2018. House Bill 4422 would delete the sunsets entirely. | Click here for current bill status |
| HB 4647 | Oppose | Thomas Albert (R) | House Bill 4647 would close out the MPSERS hybrid & defined benefit plan to new hires. | This bill would amend the MPSERS Act to require that public school employees hired after September 30, 2017, no longer have a choice between a Hybrid/Defined Benefit plan and Defined Contribution plan. They will only have the option of a Defined Contribution plan. MARSP opposes this bill as MARSP opposes any legislation that removes members from paying into the MPSERS system. In addition, MARSP opposes this bill as it would also force school personnel to become financial managers of their own retirement accounts. Most school employees are not trained financial managers and will not be able to equitably fund their retirement in a defined contribution plan alone, due to excessive administrative costs and loss of value from the pooling of assets in a defined benefit plan. This legislation would also negatively impact the interest of those who would choose a career in the education field. | Click here for current bill status |