2011

A PENSION THAT WAS EARNED AND IS PAYABLE ON ACCOUNT OF A PERSON’S EMPLOYMENT WITH A GOVERNMENTAL AGENCY THAT WAS NOT COVERED BY THE FEDERAL SOCIAL SECURITY ACT (42 USC 901 ET SEQ.) IS EXEMPT FROM TAXATION UNDER THIS ACT TO THE FOLLOWING EXTENT:

(A) THE FIRST $34,000 FOR A SINGLE FILER;
(B) THE FIRST $54,000 FOR A JOINT FILER OR A FILER WITH 1 OR MORE DEPENDENTS.
(C) INCOME EARNED FROM A DUTY-RELATED DISABILITY
(D) INCOME DERIVED FROM A SURVIVOR’S DEATH BENEFIT

Michigan House Bill 4060 is an outright attack on Public Act 345, which has been in place since 1937 and gives the right for binding arbitration to police officers and fire fighters. The proposed bill, which was introduced by Representative Douglas Geiss and referred to the Committee on Oversight, Reform, and Ethics, will take away the right of police officers and fire fighters to negotiate any pension improvement, will calculate pension benefits based only upon a new limited definition of "final average compensation", and will cap pension benefits at 55%.

The Bill will specifically exclude overtime pay, accrued sick leave or accrued vacation time, bonus pay, the cost of health insurance or other fringe benefits, and anyone-time lump sum payments, from being included in the calculation for determining the pension benefit.

Michigan House Bill 4140 has been introduced by Representative Melton and referred to the Committee on Government Operations. Here is a brief synopsis on what it will do, should it become law:

• Consolidation of health benefits for public employees

• Create a board to administer a uniform public employee health benefits program

• Create a Michigan prescription drug plan committee

• Provide for duties for certain state and local government departments, agencies, boards and departments

• To require public employers and retirement boards that provide health benefits to public employees and retirees to participate in the Michigan health benefits program

• To provide for exceptions to participate in the program

• To provide for optional participation in the program by private employers

• To allocate costs to participating public and private employers

• To require public employers to submit certain information concerning health benefit plans

• To make an appropriation, and

• To create a restricted fund.

The Local Government and School District Fiscal Accountability Act (EFM) was signed into law by Governor Snyder at the end of the day yesterday, the 16th•

House Bills 4309-4312 - Passed out of the Local and Intergovernmental Affairs Committee this morning with 9 Republican votes and Zero Democratic votes.

4309 - This bill eliminates seniority and existing contract terms in any consolidation move related to emergency services

4310 - Deals with Public transit

4311 - Eliminates the protections for seniority and benefits in the Intergovernmental Transfer Act

4312 - Eliminates protections for seniority and benefits in the Urban Cooperation Act

 THE SENATE STATE OF MICHIGAN


Legislative report for the Emergency Manager Bills
As passed the MI Senate on Wednesday, March 9,2011 *

On Wednesday, March 9 the Michigan Senate passed the Emergency Financial Manager (EFM) bills on a party-line vote of 26-l2. The bills would allow an EFM to: 

  • Take over a pension only if a pension fund is less than 80% funded. Once an EFM takes over a pension board they could get rid of the board and move the pension to the Municipal Employee Retirement System (MERS); 
  • Cancel/change terms of any contract; 
  • Void any ordinance; 
  • Relieve local officials of pay and responsibilities; 
  • Prohibit employee’s access to their office and their email; 
  • Have control over academics and close school buildings; 
  • Order millage elections; 
  • Consolidate and eliminate departments; 
  • Recommend that a municipality merge with another municipality; 
  • Sell property, including parks; and 
  • Eliminate busing (but not for children receiving special education services) and sports in a school district. 

To view entire article please see PDF.