July 21, 2010, Introduced by Rep. Geiss and referred to the Committee on Intergovernmental and Regional Affairs.
A bill to amend 1909 PA 279, entitled
"The home rule city act,"
(MCL 117.1 to 117.38) by adding section 4s.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4s. If a city authorizes a defined benefit retirement
system as a part of its system of compensation for officers or for
employees, the maximum total annual pension benefit allowable for
any officers or employees who first become employed by the city on
or after October 1, 2010 shall be no greater than 55% of the base
pay earned by the officer or employee. As used in this section,
"base pay" means the hourly pay rate of the employee up to 40 hours
per week and 52 weeks per year. Base pay shall not include any of
the following:
(a) Overtime pay.
(b) Accrued sick leave or accrued vacation time.
(c) Bonus pay.
(d) The cost of health insurance or other fringe benefits.
(e) One-time lump-sum payments.