HOUSE BILL No. 4802

 

June 23, 2011, Introduced by Rep. Geiss and referred to the Committee on Local, Intergovernmental, and Regional Affairs.

 

     A bill to amend 1909 PA 279, entitled

 

"The home rule city act,"

 

(MCL 117.1 to 117.38) by adding section 4p.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4p. A city that has a system of pension benefits for

 

members who retire with years of service as a police officer or

 

fire fighter with that city is subject to this section. For a

 

member of a pension system described in this section who becomes a

 

member of that system on and after January 1, 2012, his or her

 

pension calculated under that system shall not exceed 55% of the

 

member's base pay. If a collective bargaining agreement that

 

requires a pension greater than 55% of the member's base pay is in

 

effect on January 1, 2012, then the pension of a member subject to

 

the collective bargaining agreement shall be administered in


 

accordance with the terms of the collective bargaining agreement

 

until the agreement expires or is renegotiated. As used in this

 

section, "base pay" means the hourly pay rate of the member up to

 

40 hours per week and 52 weeks per year. Base pay shall not include

 

any of the following:

 

     (a) Overtime pay.

 

     (b) Accrued sick leave or accrued vacation time.

 

     (c) Bonus pay.

 

     (d) The cost of health insurance or other fringe benefits.

 

     (e) One-time lump-sum payments.