Senate Leaves MPSERS Unresolved

Schools and school employees are being left in limbo, at least for a while, as the Senate adjourned without taking action on the MPSERS reform legislation. A version of the bill that was supposedly a final deal passed the House early on Thursday, but failed to garner the expected support in the Senate.

What seems to be at issue is the insistence of several key senators that they will only consider a bill that ends pension benefits for new employees in favor of a defined contribution retirement plan. Since Governor Snyder opposes a defined contribution plan and the House leadership is committed to a different version of the bill, the future of any MPSERS deal is uncertain at this point.

The Senate is gone until July 18 when they could potentially come back and take action on the bill. In the meantime, schools and school employees are now left to guess what, if anything, will be done on this issue before next school year. Without action the MPSERS rate is scheduled to increase to 27.37% this fall and 31.21% in 2013.

Click here to access MASSP's analysis of the bill that passed the House and is awaiting action in the Senate, SB 1040 (H-3).