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SB 167

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. TIE BAR WITH: SB 0165'23, SB 0166'23

2023-2024 Regular Session Introduced by Stephanie Chang and 7 co-sponsors

SB 167 allows new Michigan law enforcement officers to join the state employees' retirement system instead of a separate law enforcement plan and purchase prior service credit.

referred to second reading
#corrections:employees #retirement:stateemployees #retirement:statepolice
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Bill Summary · SB 167

Legislative bill overview

SB 167 modifies Michigan's state employee retirement system to allow certain law enforcement officers hired after a specific date to join the state employees' retirement plan instead of a separate law enforcement retirement system. The bill also permits these officers to purchase service credit for prior law enforcement work under the state system.

Why is this important

This change affects retirement benefits and system participation for new law enforcement hires, potentially altering their pension structures, contribution rates, and long-term financial security. It may also have fiscal implications for both the state employees' retirement fund and the law enforcement-specific retirement system, depending on how many officers are affected and the cost of purchased service credit.

Potential points of contention

  • Cost allocation: Unclear who bears the expense of officers purchasing prior service credit and whether this creates unfunded liabilities in the state system
  • Retirement benefit differences: Officers moving to the state system may receive different pension formulas and benefits than those in the traditional law enforcement retirement plan, raising fairness concerns
  • System sustainability: Redirecting law enforcement officers away from their dedicated retirement system could destabilize that fund's actuarial balance and increase costs for remaining participants

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

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