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HB 4666

Retirement: state employees; election process to transfer certain law enforcement officers to the Michigan state police retirement system; provide for. Amends sec. 55 of 1943 PA 240 (MCL 38.55) & adds secs. 50b, 50c, 50d, 64a, 64b & 64c.

2023-2024 Regular Session Introduced by Tyrone Carter and 7 co-sponsors

One-time election lets certain SERS DC participants join SPRS Pension Plus (hybrid) from SERS DC, with a window Aug 4-Oct 17, 2025; transfer effective Jan 4, 2026.

bill ordered enrolled 12/23/2024
#retirement:definedbenefit #retirement:stateemployees #retirement:statepolice #stateagencies(existing):technology #management #andbudget
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Bill Summary · HB 4666

Summary — HB 4666 (State Employees’ Retirement Act amendments)

Status: Enrolled/Concurred (ordered enrolled 12/23/2024). Tie‑barred with HB 4665 and HB 4667.
Primary subject: Retirement — allows certain law‑enforcement and corrections employees currently in the State Employees’ defined contribution (SERS DC) system to elect to join the Michigan State Police Retirement System (SPRS, “Pension Plus” hybrid plan).

Purpose

Give eligible public safety and related employees who are currently SERS DC (401(k)‑type) participants a one‑time opportunity to leave the DC plan and become members of the SPRS hybrid pension system, with the option to purchase service credit in SPRS for prior SERS service.

Key provisions

  • Creates limited, time‑bound election rights for three classes of SERS qualified participants who were in eligible roles as of June 7, 2025:
    • Eligible position qualified participants (specified corrections and related civil service classifications);
    • Conservation officer qualified participants (conservation officers not already pension‑eligible under section 48);
    • State police qualified participants (MSP motor carrier troopers and MSP properties securities officers).
  • Election window: written elections accepted beginning August 4, 2025 and ending 5:00 p.m. EDT October 17, 2025.
  • Effective date of transfer: an employee who files a timely election ceases SERS DC participation at 11:59 p.m. January 3, 2026 and becomes an SPRS member effective January 4, 2026.
  • Elections are irrevocable and generally require the spouse’s signature (retirement board may waive for extenuating circumstances). Elections are subject to Eligible Domestic Relations Order rules.
  • Employees may transfer some or all of their defined contributions (and, when applicable and vested, employer contributions) to purchase SPRS service credit; purchase cost equals the actuarial value of purchased years.
  • Certain SERS participants described in section 55(2)(b) or (d) are excluded from eligibility.

Who is affected

  • Corrections personnel (e.g., corrections officers, shift supervisors, deputy and assistant deputy wardens, corrections medical roles, resident representatives, transportation officers, special alternative incarceration officers, senior executive wardens).
  • Conservation officers (as defined in statute) who are SERS qualified participants but not already pension‑eligible under the conservation officer pension section.
  • Certain MSP motor carrier and properties security officers.
  • Estimated eligible payroll (state actuary): roughly $404 million; large affected group includes thousands of corrections employees.

Fiscal impact and policy considerations

  • Annual employer normal cost is higher under the SPRS Pension Plus hybrid plan than the SERS DC maximum State cost (estimated additional normal cost ≈ 7.59% of affected payroll).
  • Using a $404 million eligible payroll, the increased yearly normal pension cost is estimated at about $30.7 million.
  • Immediate unfunded costs: employees converting would become eligible immediately for SPRS death and disability benefits; those costs may be unfunded initially.
  • Long‑term fiscal outcomes depend on actuarial experience (investment returns, mortality, disability claims) and treatment of retiree health/other benefits for converts.

Administrative and procedural notes

  • The Department of Technology, Management & Budget (DTMB), in consultation with the retirement board/Office of Retirement Services, must determine the election method and implement the transfers/calculations.
  • The bill is tie‑barred with HB 4665 and HB 4667 (changes to the State Police Retirement Act and related purchase mechanics).

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

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