Retirement: county employees; employment of retirant in a county sheriff’s office; allow without forfeiting retirement allowance. Amends sec. 12a of 1851 PA 156 (MCL 46.12a).

2023-2024 Regular Session

Allows county retirees to return to work for the same county, including in the sheriff’s office, and continue receiving their pension without suspension, removing the 1,000-hour ca

laid over one day under the rules

#retirement:countyemployees

Main purpose

HB 5203 (S‑1) changes county retirement law to allow a retired county employee who returns to work for the same county — including employment in a county sheriff’s office — to continue receiving their pension or retirement benefit without suspension regardless of the number of hours worked. The bill removes a prior 1,000‑hour-per‑year cap and clarifies that sheriff’s office employment counts as county employment for this purpose.

Key provisions

Amends MCL 46.12a (section 12a of 1851 PA 156).

Deletes the existing 1,000‑hour cap that limited how much a retiree could work for the county and still receive retirement payments.

Explicitly provides that employment in a county sheriff’s office is considered employment “with the county” under the statute.

Retains existing conditions required for continued payment of pension/retirement benefits while reemployed:

The retirant must not be eligible for county benefits other than those required by law or those provided by virtue of retiree status.
The retirant must not be a member of the county retirement plan while reemployed.
The retirant must not earn additional retirement credits during reemployment.
The retirant must not receive an increase in pension or retirement benefits because of the reemployment.

Who is affected

Primary: retired county employees who previously retired from a county that operates a retirement plan under 1851 PA 156 (counties reported as operating such plans include Bay, Berrien, Genesee, Gogebic, Jackson, Kent, Macomb, Midland, Monroe, Oakland, St. Clair, Washtenaw, and Wayne).

Counties and county sheriff’s offices that may rehire retirants.

County taxpayers and pension plan sponsors (counties) because of potential budgetary/actuarial effects.

Expected impacts and fiscal considerations

Supporters argue the change helps address law‑enforcement and other county staffing shortages by allowing experienced retirees to return to work without losing their pension.

Nonpartisan fiscal analyses uniformly note a negative fiscal impact for local units: allowing retirees to work full time while collecting pensions can increase unfunded pension liabilities and long‑term employer costs. The magnitude is indeterminate and depends on how many retirees return to work and when retirements are taken.

No direct state fiscal impact was reported; increased costs would fall on county budgets/actuarial rates.

Procedural/ timeline notes

Introduced in the House (Oct. 2023). Passed the House March 13, 2024.

Senate adopted substitute (S‑1) expanding scope (removal of 1,000‑hour cap / explicit inclusion of sheriff’s office employment); Senate action recorded in December 2024.

Subsequent legislative actions through mid‑2025 show the bill was placed in conference; legislative records indicate it later died in conference committee (June 16, 2025) while a companion measure (SB 2500) was enacted (Ch. 2025‑198). Status may vary by chamber and session — check the Michigan Legislature website for the most current disposition.

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