September 27, 2010
Michigan House Republicans passed significant state employee retirement reforms with the passage and bipartisan negotiation of Senate Bill 1226.
SB 1226 offers a 1.6 percent incentive multiplier to entice eligible employees to retire and will require a 3-percent health benefit contribution from remaining employees. The plan will save the state a total of $415 million through 2013.
“Republicans in the House and Senate have saved Michigan taxpayers an additional $120 million from the Democrat proposal,” said Rep. John Proos, R-St. Joseph. “Our plan accomplishes the goals set at the beginning of this budget year, saving taxpayer dollars and balancing the budget without raising taxes.”
Proos noted that the state employees’ retirement package mirrors the teachers’ plan, and enacts a real reform that will make a difference in Michigan’s economic recovery.
SB 1226 passed the House 60-45 with unanimous House Republican support. The bill now goes to the Senate for consideration.