Senator Albert asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.
The motion prevailed.
Senator Albert’s statement is as follows:
My alternative plan offered here would keep corrections officers, conservation officers, and other state employees in the plan in their current retirement systems. The officers and the other state employees covered in this package would be offered a much better 401(k) or defined contribution plan than they receive now. Currently, they’re in a fund that provides a four percent flat contribution from the state, and then an additional matching component of up to three percent. My plan would keep that four percent flat contribution but then improve the matching component based on the following schedule: if you work 0-3 years of service, you’d get a six percent match instead of the current three. Those with 3-5 years of service would get an eight percent match. Those with five or more years of service would get a match of ten percent.
This plan would also create an annuity option which employees can elect within their 401(k). If they desire a defined benefit income, they can choose one from a highly-regulated insurance provider. That is much more financially healthy than the state pension plan.
Another component introduced separately is a retention bonus of up to $10,000 for corrections officers, conservation officers, and other eligible employees who stay on the job. Any officer or other eligible employee who works two years after this measure is signed—they would receive a $5,000 retention payment. Any officer or eligible employee who works an additional two years after that would get an additional $5,000. So if an employee worked for four years, they’d get $10,000 in retention bonuses under this program.
This substitute plan is also reflected in the previous legislation I have introduced—Senate Bill Nos. 496 and 497. I appreciate your consideration.
The following bill was read a third time:
Senate Bill No. 167, entitled
A bill to amend 1986 PA 182, entitled “State police retirement act of 1986,” (MCL 38.1601 to 38.1674) by adding sections 24c, 24d, 24e, and 24f.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows: