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House Co-Sponsorship Memoranda
House of Representatives
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | May 6, 2014 03:33 PM |
|---|---|
| From: | Representative John D McGinnis |
| To: | All House members |
| Subject: | Co-Sponsorship of Legislation – Amending the County Pension Law |
| In the near future, I will introduce legislation to amend the County Pension Law (Act 96 of 1971) to contain a growing pension underfunding problem faced by many counties. My legislation requires all new full-time county employees to become mandatory participants in an independent defined contribution retirement savings program. Every county shall provide for this program by entering into a contract with a qualified third party administrator within one year of the effective date of this amendment. The county and employee/participant will each contribute five percent of compensation to a participant’s investment account. This defined contribution plan will enable counties to better address any underfunding of their defined benefit plans, which cannot be done by incurring additional obligations. Currently, under the County Pension Law, an employee’s contributions are paid into a defined contribution plan, but the county’s contributions are paid into a defined benefit plan. Any county employee, who is a member of the current plan, will not be affected by this legislation. Please join me in sponsoring this important piece of legislation. |