LEGISLATIVE RETIREMENT SYSTEM H.B. 4194 (H-3):
FLOOR SUMMARY
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House Bill 4194 (Substitute H-3 as reported without amendment)
Sponsor: Representative Dian Slavens
House Committee: Government Operations
Senate Committee: Reforms and Restructuring
CONTENT
The bill would amend the Michigan Legislative Retirement System Act, which requires the State to contribute 90% of the retiree health insurance premium payments for legislators elected after March 31, 1997, who qualify for retirement with benefits. A legislator must have served at least six years, and must be at least age 55, in order to begin receiving health care provided by the State's plan.
House Bill 4194 (H-3) would eliminate retiree health care coverage for legislators who are elected after November 1, 2010. This would not have an impact on currently elected officials, but would be prospective by affecting those elected after November 1, 2010.
MCL 38.1075
FISCAL IMPACT
The bill would reduce costs to the Legislative Retirement System (LRS), with very minimal savings initially, growing over time as more members are newly elected and would not be provided with health care benefits upon retirement. In fiscal year 2007-08, $4.7 million was paid in health care costs under the LRS, covering 341 subscribers, or a total of roughly 700 retired elected officials and their spouses, surviving spouses, and eligible dependents.
Date Completed: 2-24-10 Fiscal Analyst: Kathryn Summers
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb4194/0910