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HB 5328

Retirement: judges; employee contribution and match; increase. Amends sec. 714 of 1992 PA 234 (MCL 38.2664).

2023-2024 Regular Session Introduced by Joey Andrews and 8 co-sponsors

The bill increases the maximum employer‑matched employee contribution to Tier 2 from 3% to 5% of salary for qualified Judges Retirement System participants, effective April 10, 202

assigned PA 152'24
#retirement:definedcontribution #retirement:judges
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Bill Summary · HB 5328

Summary — HB 5328 (Judges Retirement: increase employee contribution and employer match)

  • Bill number / public act: HB 5328 — Enacted as Public Act 152 of 2024
  • Statute amended: Judges Retirement Act of 1992, section 714 (MCL 38.2664)
  • Sponsor: Rep. Jimmie Wilson, Jr.
  • Effective: Act approved Nov. 13, 2024; the bill specifies the increased contribution/match begins April 10, 2025.

Purpose

The law increases the maximum employee elective contribution to Tier 2 (defined contribution) accounts for qualified participants in the Judges Retirement System and thereby increases the amount of those contributions that the employer must match. The change is intended to provide parity with similar state-employee matching benefits (an additional 2% match offered in lieu of retiree health insurance), help judges fund post‑retirement health costs, and support recruitment/retention.

Key provisions

  • Employer mandatory contribution to Tier 2 remains 4% of salary.
  • Current cap: a qualified participant could elect to contribute up to 3% of salary that would be fully matched by the employer.
  • Under HB 5328: beginning April 10, 2025, the elective contribution subject to a 100% employer match increases from 3% to 5% of salary (an additional 2% employee elective contribution and corresponding employer match).
  • Participants may make additional, non‑matched contributions as permitted by the State Treasurer and the Internal Revenue Code.
  • The bill retains an existing option (section 701a) allowing certain participants to elect up to 6% contributions with corresponding employer treatment described in the statute.
  • Statutory citation: MCL 38.2664.

Who is affected

Qualified participants under the Judges Retirement System Tier 2 include:
- Michigan judges (Supreme Court, Court of Appeals, circuit, district, probate, and Recorder’s Court of Detroit), and
- Other qualified officeholders specified in the statute (Governor, Lieutenant Governor, Secretary of State, Attorney General, Legislative Auditor General, State Court Administrator).

Fiscal impact

  • Estimated payroll for the affected group: ~$97.6 million.
  • Estimated additional annual employer cost: roughly $1.9–$2.0 million (an additional 2% of payroll), growing annually by payroll growth assumptions (Senate analysis used 2.75%). Costs would be borne by the General Fund. Actual cost depends on how many participants elect the higher contribution.

Legislative / procedural notes

  • Passed by the Legislature and approved by the Governor (signed Nov. 13, 2024) as Public Act 152 of 2024.
  • The statutory amendment specifically sets April 10, 2025 as the date when the elective contribution/match cap increases to 5%.

Support / testimony

  • Support voiced by the Michigan Judges Association, State Court Administrative Office, and Michigan District Judges Association.
  • Office of Retirement Services indicated no position.

(Statutory language and fiscal estimates are taken from House and Senate committee analyses and the enrolled bill as enacted.)

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

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