Legislative Analysis
Phone: (517) 373-8080
INCREASE MAXIMUM CONTRIBUTION AND MATCH
http://www.house.mi.gov/hfa
FOR JUDGES RETIREMENT SYSTEM TIER 2 PLANS
Analysis available at
House Bill 5328 as introduced http://www.legislature.mi.gov
Sponsor: Rep. Jimmie Wilson, Jr.
Committee: Judiciary
Complete to 2-20-24
SUMMARY:
House Bill 5328 would amend the Judges Retirement Act to increase the amount that a
qualified participant in a Tier 2 (defined contribution) plan can contribute to their account,
from 3% of their salary under current law to 5% of their salary under the bill. The qualified
participant’s employer must match contributions the qualified participant makes under these
provisions, so the bill would also effectively increase the amount subject to that match from
3% to 5% of salary.
MCL 38.2664
FISCAL IMPACT:
The bill would increase employer retirement contribution costs by approximately $1.9 million
according to the Office of Retirement Services. The increased costs ultimately would depend
on the extent to which qualified participants made additional contributions that necessitated
additional employer matching contributions. Under the current defined contribution plan, the
employer makes a mandatory contribution of 4%. The employer also matches 100% of the
contributions made by the employee, up to a maximum of 3%. The provisions of the bill would
increase the employee contribution subject to a match to 5%, a two percentage point increase.
Legislative Analyst: Rick Yuille
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.
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Statutes affected:
House Introduced Bill: 38.2664