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Senate Decides Not to Vote on Plan to Close MPSERS Hybrid System

Jennifer Smith

By Jennifer Smith, MASB Director of Government Relations

DashBoard, Dec. 7, 2016

Senate Majority Leader Arlan Meekhof (R-West Olive) announced yesterday that there would not be a vote on Senate Bill 102 during lame duck. Thank you to all who took action and contacted your Senator—your voice helped stop this bill!

Senate Bill 102 was sent to the floor by the Senate Appropriations Committee last week and was awaiting action by the full Senate. It would close the current hybrid Michigan Public School Employees Retirement System and put all new employees into a 401k plan. However, the fiscal analysis of the bill shows this proposal has large costs to both the state and local districts without ever creating savings.

MASB opposed SB 102 because of these cost issues. Also, this is too complicated of an issue to rush through lame duck. Finally, the current MPSERS hybrid plan is fully funded and strides are being made to pay off the unfunded liabilities that exist in the traditional system. The proposal in SB 102 did nothing to address the unfunded liabilities, and appeared to be trying to solve a problem that does not exist in the current system.

We do expect the Legislature to bring this issue back up in the new session that starts in January. Hopefully, at that time, we can have a more robust conversation and give this issue the full consideration it deserves.

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