Michigan House Bill 4060 is an outright attack on Public Act 345, which has been in place since 1937 and gives the right for binding arbitration to police officers and fire fighters. The proposed bill, which was introduced by Representative Douglas Geiss and referred to the Committee on Oversight, Reform, and Ethics, will take away the right of police officers and fire fighters to negotiate any pension improvement, will calculate pension benefits based only upon a new limited definition of "final average compensation", and will cap pension benefits at 55%.
The Bill will specifically exclude overtime pay, accrued sick leave or accrued vacation time, bonus pay, the cost of health insurance or other fringe benefits, and anyone-time lump sum payments, from being included in the calculation for determining the pension benefit.
In addition, should any Collective Bargaining Agreement be in place, which allows for a final average compensation greater than 55%, that benefit will only remain in place until the Collective Bargaining Agreement expires or is renegotiated.
We oppose this bill, and encourage our members to contact Representative Douglas Geiss, members of the Committee on Oversight, Reform and Ethics, as well as their own state representative, and voice your opposition to this bill and encourage them to stop this bill from further consideration.
Members can read the bill can be read in its entirety at www.legislature.mi.gov .