June 23, 2011, Introduced by Rep. Geiss and referred to the Committee on Local, 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 4p.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4p. A city that has a system of pension benefits for
members who retire with years of service as a police officer or
fire fighter with that city is subject to this section. For a
member of a pension system described in this section who becomes a
member of that system on and after January 1, 2012, his or her
pension calculated under that system shall not exceed 55% of the
member's base pay. If a collective bargaining agreement that
requires a pension greater than 55% of the member's base pay is in
effect on January 1, 2012, then the pension of a member subject to
the collective bargaining agreement shall be administered in
accordance with the terms of the collective bargaining agreement
until the agreement expires or is renegotiated. 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.