Legislative Analysis
ALLOW RETIREES TO WORK IN COUNTY SHERIFF OFFICES Phone: (517) 373-8080
http://www.house.mi.gov/hfa
WITHOUT SUSPENDING PENSION BENEFITS
Analysis available at
House Bill 5203 as reported from committee http://www.legislature.mi.gov
Sponsor: Rep. Kelly Breen
Committee: Local Government and Municipal Finance
Complete to 3-12-24
SUMMARY:
House Bill 5203 would amend 1851 PA 156, an act that authorizes county boards of
commissioners to provide retirement benefits to their employees, to allow retired county
employees who work at a sheriff’s office to continue to receive retirement benefits.
Generally, under the act, if a person who has retired and is receiving retirement benefits
becomes re-employed with the same county, the retirement benefit payment is suspended for
the period of employment. (The act contains certain exceptions to this provision.)
The bill would allow pension or retirement benefit payments to continue without change in
amount or conditions if a retiree becomes employed by a county sheriff’s office, as long as all
of the following apply:
• The retiree is not eligible for any benefits from the county other than those required by
law or otherwise provided because they are a retiree.
• The retiree is not a member of the county retirement plan during the period of
reemployment and does not receive any additional retirement credits.
• The retiree does not receive an increase in pension or retirement benefits because of
the employment.
MCL 46.12a
BRIEF DISCUSSION:
According to committee testimony, 11 counties currently operate a retirement plan under the
act. 1 In these counties, retired individuals cannot come back to work in the same county, so
years of institutional knowledge are lost. The bill intends to give those retirees the same
opportunity as individuals employed by most other counties, who can return to work after
retirement and continue to receive pension benefits. Supporters of the bill believe that allowing
these individuals, who have extensive experience working in public safety, to come back to
work would help address staffing shortages in county sheriff departments.
FISCAL IMPACT:
Generally speaking, the bill would create an incentive for some employees to retire earlier than
they might have otherwise knowing that they may return to work and earn both current
1
Reportedly, these counties are Bay, Berrien, Genesee, Gogebic, Jackson, Kent, Macomb, Midland, Monroe, Oakland,
St. Clair, Washtenaw, and Wayne Counties.
House Fiscal Agency Page 1 of 2
 compensation and a pension. When retirees retire earlier than anticipated under a retirement
system’s actuarial assumptions, it increases the unfunded liabilities in a pension
system. Increased unfunded liabilities would be borne by the county through increased costs
on payroll. An estimate of the costs is not available at this time and would vary by county
assuming the county chose to allow retirants to return to work in the county sheriff’s office.
The increased unfunded liabilities would be directly related to the number of employees
choosing to retire earlier than the system otherwise assumed. How this policy would affect
employment and staffing in county sheriff’s offices is unknown.
POSITIONS:
Representatives of the following entities testified in support of the bill (2-21-24):
• Kent County Sheriff
• Michigan Sheriffs’ Association
The following entities indicated support for the bill:
• Michigan Association of Counties (3-6-24)
• Southeast Michigan Council of Governments (2-21-24)
Legislative Analyst: Holly Kuhn
Fiscal Analyst: Ben Gielczyk
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 5203 as reported Page 2 of 2


Statutes affected:
Substitute (S-1): 46.12
House Introduced Bill: 46.12
As Passed by the House: 46.12
As Passed by the Senate: 46.12