The state House today overwhelmingly approved Rep. Thomas Albert’s plan designed to ensure Michigan State Police retirees get their promised benefits while controlling long-term system costs.
“These reforms will help troopers and taxpayers, which is a ‘win-win’ situation,” said Albert, of Lowell. “We’re another step closer to changes that will help Michigan State Police employees retire with the benefits they have been promised and have earned.”
Albert worked with the Michigan State Police Troopers Association and other groups to help build support for the plan.
The legislation updates state law to reflect the most recent collective bargaining agreement, helping preserve retirement benefits for troopers, sergeants, commanders and other employees. The legislation also includes significant changes to make retirement system costs more sustainable and predictable moving forward, Albert said, while preserving retirement benefits.
Changes include lower payroll growth assumptions to reflect current trends, and a schedule to pay off retirement system debt by 2038, the same target date for eliminating unfunded liabilities in other state employee retirement systems. Debt will be paid off more along the lines of a fixed-rate car or home loan – a predictable system that lowers the risk of taxpayers getting stuck with unexpected, ballooning payments in later years.
House Bills 6475-81 advance to the Senate for further consideration.