Summary of Public Act 127 of 2024

Michigan Office of Retirement Services sent this bulletin at 10/10/2024 04:05 PM EDT

On Oct. 3, 2024, House Bill 5803 of 2024 was signed by the governor and became law as Public Act 127 of 2024.

The following changes will take effect Oct. 1, 2025:

Members with the premium subsidy healthcare benefit will no longer be required to contribute 3% toward future healthcare benefits. At that time, employers can expect to see an increase in their other post-employment benefits (OPEB) normal cost contributions for members with the premium subsidy benefit. ORS will communicate more regarding the removal of the 3% member contribution in the coming months.
The OPEB normal cost contribution floor will be removed. This means that the OPEB normal cost contribution for fiscal year (FY) 2026 and subsequent FY can be less than the previous FY. This change will not impact the pension normal cost contribution floor.

If you have questions regarding this matter, please contact ORS_Web_Reporting@Michigan.gov.

State of Michigan | Department of Technology, Management & Budget | Office of Retirement Services
PO Box 30171 | Lansing, MI 48909-7671 | Michigan.gov/PSRU

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Please do not reply to this email. This mailbox is not monitored and you will not receive a response. For assistance, contact ORS_Web_Reporting@michigan.gov.

The retirement plan information that appears in this email is intended to summarize basic provisions of Public Act 300 of 1980, as amended. Current laws, rates, and factors are subject to change. Should there be discrepancies between the information reflected here and the actual law, the provisions of the law govern.