Significant reform to benefits provided to State of Michigan
House Bills 4701 and 4702 passed along party lines (63-45 and 63-44, respectively); however, it was the vote on immediate effect that caused the chaos. With Republicans and Democrats standing and shouting, Representative Paul Opsommer (R-DeWitt) granted immediate effect to HB 4701 on a voice vote. After considerable objection and request for a recorded vote on immediate effect, Democratic Floor Leader Representative Kate Segal (D-Battle Creek) submitted a letter containing the signatures of House Democrats; however, the recorded vote was not taken.
Prior to the votes, debate had already become contentious as Republicans and Democrats sparred over the substance of the reform. Proponents argue that the unfunded liability for the state in retiree obligations is already $10 billion – and growing, a sign of an unsustainable system. Opponents argue the reform is radical change that puts the future health of retirees at risk.
The package would require state employees on the defined benefit plan, or pension, to pay 4 percent of their salary toward their retirement, but would refund the 3 percent that those employees have been paying toward healthcare benefits (an issue currently being litigated). Additionally, under the reform, employees hired after January 1, 2012 will not get a matching contribution toward health care coverage.