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 (H-1) as adopted http://www.legislature.mi.gov
Sponsor: Rep. Jimmie Wilson, Jr.
Committee: Judiciary
Complete to 9-25-24
(Enacted as Public Act 152 of 2024)
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 increase
would be effective beginning April 10, 2025. 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
BRIEF DISCUSSION:
According to committee testimony, allowing an additional match amount of 2% of salary for
judges in the defined contribution plan would provide parity with match amounts for similarly
situated state employees, who are eligible for a 2% employer matching contribution if they
were hired too late to qualify for retiree health insurance benefits. This match option is offered
in lieu of retiree health insurance and is meant to provide funds to offset postretirement health
care expenses.
Generally speaking, judges who first took office after March 31, 1997, also do not have state
retiree health insurance benefits—although some counties, such as Wayne, Macomb, Oakland,
and Kent, do provide them. As judges are prohibited from being appointed or elected after 70,
the majority of currently serving judges will have taken office after that date. The additional
2% match amount under the bill could similarly provide funds for their postretirement health
care expenses and help them better plan for retirement.
Reportedly, judicial vacancies in some counties are not being easily filled. For attorneys in
private practice, becoming a judge often means taking a job that pays less and has no pension
or postretirement health care. Supporters argue not only that the bill will provide the above-
described parity between judges and other state employees, but also that doing so could perhaps
help attract and retain accomplished, knowledgeable, and dedicated attorneys to serve their
communities and the state from the bench.
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
House Fiscal Agency Page 1 of 2
 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.
POSITIONS:
Representatives of the Michigan Judges Association testified in support of the bill. (2-21-24)
The following entities indicated support for the bill (5-22-24):
• State Court Administrative Office
• Michigan District Judges Association
The Office of Retirement Services indicated having no position on the bill. (5-22-24)
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.
House Fiscal Agency HB 5328 (H-1) Page 2 of 2


Statutes affected:
Substitute (H-1): 38.2664
House Introduced Bill: 38.2664
As Passed by the House: 38.2664
As Passed by the Senate: 38.2664
House Concurred Bill: 38.2664
Public Act: 38.2664
House Enrolled Bill: 38.2664