Heading into Wednesday’s single legislative session day for
July, all eyes were focused on the potential reform to the Michigan Public
School Employee Retirement System and whether the House, Senate, and Governor
Snyder’s Administration would reach a consensus. An agreement was not reached
and the vehicle legislation, Senate
Bill 1040, is now bound for a conference committee.
The House of Representatives waited into the
evening as Senate Republicans recessed and caucused multiple times; however,
ultimately they were unsuccessful in securing the necessary votes to pass the
House version (H-3) of the measure. Ten Republicans joined all twelve Senate
Democrats in voting no and the legislation failed 16-22. Conference committee
members have not yet been announced; however, it is expected not to take too long
as the Governor has already made his hopes known that MPSERS reform will be
ready for a potential session day on August 15th.
The Senate has been pushing all along for a plan
that included a 401(k)-like defined contribution retirement plan for new hires
– something not in the House version of the reform. Another version, a
compromise offered by Senators Mark Jansen (R-Gaines Township
Budget Director John Nixon, CPA, seen in and out
of the Senate chamber several times throughout the day, stressed the need to
address the reform sooner than later.