School Retiree Changes Head to Governor’s Desk

On September 28, 2023, the Michigan Legislature sent additional school retiree reforms to Governor Whitmer’s desk.  House Bill 4752 looks to strike a middle ground between the old retirement regime and the nine-month waiting period enacted in 2022, and Governor Whitmer is expected to sign the bill into law.

Once signed into law, the bill provides for two material changes for MPSERS retirees:

• The wait period before a retiree can return to a reporting unit and continue to receive their full pension benefits will be reduced to six months.
• Retirees can return immediately after a bona fide termination if they make less than $15,100 that calendar year.

House Bill 4752 should add some flexibility for public school districts and retirees.  While retirees must still meet the bona fide termination requirement, schools will be able to welcome back retired staff that want to contribute to their school community sooner than the current nine-month wait period. The legislation should offer relief to schools in areas like coaching and substitute teaching, where retirees can work immediately after their bona fide termination if earning under the $15,100 threshold.

For questions on this legislation, please contact a member of the Education practice group.