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HB 4667

Retirement: state employees; membership in the retirement system of certain law enforcement officers first hired after certain date; provide for, and allow for purchasing service credit for certain law enforcement officers' service under the state employees' retirement system. Amends 1986 PA 182 (MCL 38.1601 - 38.1674) by adding secs. 24c, 24d & 24e.

2023-2024 Regular Session Introduced by Tyrone Carter and 8 co-sponsors

HB 4667 expands SPRS eligibility to specified corrections, conservation, and MSP positions, lets eligible SERS DC participants switch to SPRS, and allows purchase of prior SERS ser

bill ordered enrolled 12/23/2024
#corrections:employees #retirement:stateemployees #retirement:statepolice
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Bill Summary · HB 4667

Summary — HB 4667 (Enrolled substitute)

Title: Retirement: state employees; membership in the retirement system of certain law enforcement officers first hired after certain date; provide for, and allow for purchasing service credit for certain law enforcement officers' service under the state employees' retirement system. (Adds MCL 38.1624c–e / sections 24c–24f to State Police Retirement Act)

Main purpose

HB 4667 extends eligibility to join the Michigan State Police Retirement System (SPRS, the “Pension Plus” hybrid plan) to a set of law‑enforcement and corrections positions that currently participate in the State Employees’ Retirement System (SERS) defined‑contribution (DC / 401(k)-type) plan. It also permits eligible employees who switch to SPRS to purchase prior SERS service credit in SPRS by paying an actuarially equivalent amount.

Key provisions

  • Expands the SPRS membership definition to include specified “eligible positions,” conservation officers, certain Michigan State Police motor carrier and properties securities officers, and specified forensic security positions. (Lists of covered classifications are provided in the bill; examples include corrections officers, resident unit officers, corrections medical aides/officers/unit officers, shift supervisors, security inspectors/representatives, deputy/assistant deputy wardens, senior executive wardens, forensic security assistants, etc.)
  • Allows current SERS DC participants in those positions (qualified participants) to irrevocably elect to terminate DC plan membership and become SPRS members.
  • New hires in the covered positions who are employed and entered on payroll after June 7, 2025, are placed directly into SPRS.
  • Permits an eligible employee who joins SPRS to purchase up to the full amount of prior SERS service credit. The purchase price equals the actuarial value of the service as determined by SPRS actuary.
  • Payment options for purchased service: tax‑deferred payments or additional payments per a method to be established by the retirement system. A member has four years after initiating a purchase to complete payment; failure to complete cancels the purchase.
  • Transfers: an employee may transfer part or all of their DC account (and, when applicable, employer contributions subject to vesting rules) to purchase SPRS service credit.
  • Other legal/details: elections are subject to Eligible Domestic Relations Orders (EDROs) and generally require spouse signature (waivable for extenuating circumstances). For members covered, the act controls over conflicting collective bargaining language. The purchase cannot grant credit for service already paid as a retirement allowance by another system.

Who would be affected

  • Current SERS DC participants occupying covered corrections, forensic, conservation, and certain MSP positions (roughly thousands of workers — Department of Corrections represents the largest affected group).
  • New hires in those covered classifications after June 7, 2025.
  • SPRS and SERS plan administration (Office of Retirement Services / retirement boards).

Elections, timelines, and procedures (as enrolled / summarized)

  • ORS must accept written elections from eligible employees beginning August 4, 2025 and ending October 17, 2025 (enrolled summary). Employees electing to join SPRS would become members on January 4, 2026.
  • Initiation of service‑credit purchase must begin by October 17, 2025 (enrolled bill); members then have 4 years to complete payments.
  • The bill is tie‑barred with companion bills (HB 4665 and HB 4666): it does not take effect unless those companion bills are enacted.

Fiscal impact (summary)

  • Eligible payroll estimated at about $404 million (state actuary estimate used in analyses).
  • SERS DC plan “normal cost” (state contribution) ≈ 7.56% of payroll; SPRS Pension Plus combined pension + DC match ≈ 15.15% of payroll. The additional normal pension cost difference ≈ 7.59% of payroll.
  • Multiplying 7.59% × $404 million ≈ $30.7 million additional normal pension cost per year if all eligible payroll converted to SPRS.
  • The upfront actuarial purchase requirement should neutralize immediate funded‑status effects for purchased past service, but certain costs (death/disability for newly eligible members) could be unfunded and longer‑term liability outcomes depend on future experience relative to actuarial assumptions.

Procedural status (selected)

  • Bill ordered enrolled 12/23/2024 (House concurred with enrolled version); enrolled substitute adds sections 24c–24f and contains the purchase‑credit framework. The bill is tie‑barred to HB 4665 and HB 4666 and requires the other bills' enactment to take effect.

If you want, I can:
- Produce a one‑page handout listing exact job classifications covered;
- Produce a timeline graphic of election/payment/implementation dates;
- Extract the precise statutory cross‑references and text snippets for counsel or bargaining teams.

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

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