July 21, 2010, Introduced by Rep. Geiss and referred to the Committee on Intergovernmental and Regional Affairs.
A bill to amend 1984 PA 427, entitled
"Municipal employees retirement act of 1984,"
(MCL 38.1501 to 38.1555) by adding section 36b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 36b. Beginning with employees who were hired on and after
October 1, 2010, a municipality shall not offer any member a
defined benefit retirement benefit that exceeds, on an annual
basis, 55% of the base pay of the member that the municipality
utilized to calculate the benefit. If a collective bargaining
agreement or other binding agreement that affects the defined
benefit pension amount is in effect on September 30, 2010, the
defined benefit pension amount shall be paid in accordance with the
terms of the collective bargaining or other binding agreement until
the agreement expires or is revised or renewed. As used in this
section, "base pay" means the hourly pay rate of the member 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.