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HB 6253

AN ACT RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM -- MEMBERSHIP AND SERVICE CREDITS

2025 Regular Session Introduced by Sam Azzinaro and 5 co-sponsors

The bill lets active members buy up to 4 years of military reserve/National Guard service at a 5:1 ratio (and other armed forces credits) to boost retirement credits.

04/23/2025 Introduced, referred to House Finance
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Bill Summary · HB 6253

Summary — HB 6253

Title: AN ACT RELATING TO PUBLIC OFFICERS AND EMPLOYEES — RETIREMENT SYSTEM — MEMBERSHIP AND SERVICE CREDITS

Status: Introduced (most recent entry 04/23/2025), referred to House Finance. (The legislative record includes earlier electronic reproduction and earlier introductions; the text summarized below is from LC002666.)

Purpose

The bill amends the state retirement statute (section 36‑9‑31) to expand and clarify members’ ability to purchase military (armed service) service credit toward retirement. It specifically adds provisions allowing police officers and firefighters who served in the National Guard or Reserves and qualify as veterans to purchase retirement credit for that service on a specified conversion ratio.

Key provisions

  • Who may purchase credit

    • Any active member of the retirement system who served on active duty in the U.S. armed forces or in the U.S. Merchant Marine (as defined) may purchase up to four (4) years of service credit, provided the member received an honorable discharge.
    • Police officers and firefighters who served in the National Guard or Reserves and qualify as veterans may purchase creditable service based on guard/reserve time (see conversion ratio below).
    • Members on an official leave of absence for illness or injury remain eligible to purchase military credits while on leave.

  • Conversion ratio for guard/reserve service (police/firefighters)

    • A ratio of 5 years of National Guard or Reserve service = 1 year of creditable service, up to a maximum of 4 years of purchased credit. (Example: 20 years of reserve service would convert to the 4‑year maximum credit.)

  • Cost to purchase

    • The purchase cost is 10% of the member’s first year’s state employee earnings, multiplied by the number of years (and fractions) being purchased, up to the 4‑year maximum.

  • Interest and timing rules

    • No interest is charged if the member purchases the credit within the first five (5) years of membership in the retirement system.
    • If purchased after five years of membership, regular interest is charged from the date of enrollment to the date of purchase.
    • Members who were in the retirement system prior to July 1, 1980 are exempt from interest charges when purchasing armed service credit.

  • Effective date

    • The act takes effect upon passage.

Who is affected

  • Active members of the state retirement system who are veterans (including members of the Merchant Marine) seeking to buy military service credit.
  • Police officers and firefighters with National Guard or Reserve service who qualify as veterans (they can convert guard/reserve years at the 5:1 ratio).
  • Employers/retirement system: the change can affect plan liabilities and contribution needs (see fiscal considerations below).

Potential impact and considerations

  • For members: provides a structured, potentially lower‑cost pathway to add up to four years of retirement service credit, which can increase pension benefit eligibility and amount.
  • For police/firefighters with reserve service: the 5:1 conversion makes it easier for long‑term reservists to obtain limited creditable service.
  • Fiscal effect: increasing members’ credited service typically increases future pension obligations. The bill sets member purchase costs (10% of first‑year earnings per purchased year), but it does not specify employer or system funding changes; actuarial analysis would be needed to estimate net system cost or savings.
  • Administrative: retirement system will need procedures to verify service, honorable discharge status, and to apply the conversion ratio and interest rules.

Notes on legislative history

  • The version in the record is labeled LC002666 and shows introduction and referral on 04/23/2025 to House Finance (sponsors listed: Representatives Read, Noret, Azzinaro, Chippendale, Paplauskas, and Finkelman).
  • Other entries in the materials show earlier reproductions and an earlier Michigan insurance‑code text that appears unrelated to the retirement amendments; the LC002666 text above matches the retirement topic specified in the bill title.

Compiled from official sources — confirm details with the bill’s official record.

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