By Mary Pollock
Scrap the Cap Update
At the State of Michigan Retirement Board meeting in May, the actuaries reported that the State of Michigan retiree health care account is now 117 percent funded, potentially making just under $1 billion available for other State priorities – such as removing the $300 cap on State defined benefit retiree annual cost-of-living adjustments (COLA). Michigan SERA will be working to convince policy makers that it would be wisest to continue fully funding retiree health care and to invest in improving the annual COLA. In your contacts with your State Representatives and State Senators at community events, by e-mail or phone on this issue, point out that State revenue is there to fund this effort so that isn’t an excuse for failure to both change the $300 cap policy in statute and appropriate dollars toward implementation.
Collective Bargaining for State Employees Under Review
The Michigan Civil Service Commission (MCSC) took preliminary comments at its May 14 meeting from State employee union representatives concerning proposed amendments to MCSC Rules 6-3 and 6-9 regulating collective bargaining in the State classified service. The reason the collective bargaining process is important to State retirees is that the State Employees’ Retirement Act requires that the health care premiums for State retirees be the same as that charged to current active employees.
As a result, State unions bargain with the governor’s representative about health plan design, costs, and premiums from the perspective of younger active State employees. For instance, unions agreed several years ago to increase the co-pay for emergency room (ER) visits to $200. Perhaps this was in exchange for some other desirable benefit for union members. Or perhaps it was to discourage overuse of ERs for medical conditions that could better and more cheaply be addressed by their own doctors or at an urgent care facility.
Retirees and older persons in general have more emergent medical conditions. Discouraging use of the ER could potentially lead to higher costs and/or dire consequences if a retiree delays an ER visit due to a high co-pay. SERA met and conferred with the MCSC benefits manager and got the co-pay reduced to $50 in the State employee health care plan.
MCSC now has three members appointed by Governor Whitmer, providing a working majority of MCSC votes to change collective bargaining policy. Commissioners requested that the period for comments on the proposed amendments be extended for 90 days. State Personnel Director John Gnodtke has issued an invitation to comment by July 2, 2025. Written comments should be e-mailed to MCSC at OGC@mi.gov or sent to Office of the General Counsel, Michigan Civil Service Commission, P.O. Box 30002, Lansing, Michigan 48909. Michigan SERA will be sending written comments expressing current and future retirees’ interest in the proposed or other changes.
Legislative Activity
Since May 12, there has been some movement on bills that Michigan SERA is tracking.
Officeholder Finance Disclosure – Governor Whitmer has signed Senate Bills (SBs) 99 and 100, now Public Acts 3 and 4 of 2025, which expand financial disclosure requirements for public officials and candidates. The new laws clarify reporting rules, extend the filing deadline from May 15 to June 13, and aim to enhance transparency and accessibility in the political process. The bills had bipartisan support.
The need for delay in filing comes after widespread difficulties with the Department of State’s new Michigan Transparency Network, which has struggled to process lobbyist and campaign finance data. The bills were amended to create a new financial disclosure form, now statutorily defined. Submissions will be allowed via e-mail, and new rules will require more detailed asset reporting.
Help for Northern Michigan – Governor Whitmer signed House Bill (HB) 4328, now Public At 5 of 2025, to provide Northern Michigan with $100 million following the ice storms that decimated the region earlier this year. The law will immediately provide $75 million in emergency funds to support disaster relief and open the possibility of an additional $25 million that would be subject to legislative transfer.
Budget Bills – The full Michigan Senate has approved $83.7 billion in 20 budget bills and sent them over to the House. The total Senate budget exceeds the Governor’s $83.5 billion proposal, with the additional funding allocated across health care, education, and support for small businesses. Meanwhile, the Michigan House just introduced its budget bills on June 5 and has yet to hold hearings on them or begun negotiations with the Senate and the Governor. Because of the House delay, it is unlikely Michigan will have a budget by the statutory deadline of June 30.
Corrections Pensions – HB 4201 to exempt Department of Corrections retirement and pension benefits from State income taxes passed in the Michigan House 102 – 4 on May 14. The bill would add State corrections officers to those who are able to deduct retirement and pension benefits without restriction and would state that its provisions apply retroactively to the 2023 tax year and all subsequent tax years. No word yet from the Senate legal challenge on the nine bills that passed in both chambers from last session that the House refused to send over to the Governor for signature. Three of the bills enhanced some Corrections pensions.
Health Record Security – Requirements for security and storage of electronic health records in HB 4242 passed the House 71-39 on May 13 and is now in the Senate Health Policy Committee for further consideration. The bill would amend the Public Health Code to require health professionals and health facilities or agencies to ensure that any off-site physical or virtual environment used for keeping their patient medical records is physically maintained in a state of the United States (i.e., not a district, territory, or possession) or in a province of Canada. The provision would not apply to health maintenance organizations. Generally speaking, the code requires patient records to be kept for at least seven years, with specific exceptions that can allow for shorter periods or require longer ones. Violations would be a misdemeanor.
Retiree Health Plans – HB 4464 would amend the Insurance Code to provide that several provisions that codify the federal Patient Protection and Affordable Care Act (ACA) into State law do not apply to retiree-only health care coverage or non-grandfathered health plan coverage. If enacted, it would permit “skinny” health insurance coverage in post-retirement or Medicare supplement policies that State retirees in the defined contribution retirement program have to buy on the private insurance market. Michigan SERA opposed the bill in committee but it passed the House unanimously.
Amber Alert for Missing Seniors – Michigan SERA supported in committee hearing June 3 HB 4362 to provide notification of the public by text message of a missing senior or vulnerable adult.
Campaign Candidate Watch News
U.S. Senate – With the announced retirement of Michigan’s current U.S. Senator Gary Peters at the end of his current term in 2026, there will be an open seat in Michigan. Former Speaker of the Michigan House State Rep. Joe Tate recently entered an increasingly competitive Democratic race for the seat. He joins a growing field that includes State Sen. Mallory McMorrow of Royal Oak, U.S. Rep. Haley Stevens of Birmingham, and Dr. Abdul El-Sayed of Ann Arbor. On the Republican side, former U.S. Rep. Mike Rogers of White Lake, who narrowly lost the 2024 Senate race, remains the sole declared candidate so far. U.S. Senate candidates must collect 15,000 voter signatures by the filing deadline next spring to be eligible for the primary ballot. Voters can only sign nominating petitions for one candidate in one party.
Governor – Governor Gretchen Whitmer will reach the end of her second term in December 2026 and a number of candidates have emerged for the seat. On the Republican side, current Republican Leader of the Michigan Senate Aric Nesbitt (Porter Township), former Michigan Attorney General Mike Cox (Livonia), and current U.S Rep. John James (Shelby Township) have announced. On the Democratic side, current Secretary of State Jocelyn Benson (Detroit), Lt. Governor Garlin Gilchrist (Detroit), and current Genessee County Sheriff Chris Swanson (Flint) have announced. Longtime Democrat and Mayor of Detroit Mike Duggan announced in December of 2024 that he is running as an independent candidate. Gubernatorial candidates must collect 15,000 voter signatures by the filing deadline next spring to be eligible for the primary ballot. Voters can only sign nominating petitions for one candidate in one party for Governor.
Other Statewide Offices – Each party nominates its Attorney General and Secretary of State candidates at their respective conventions in 2026. Current Attorney General Dana Nessel and current Secretary of State Jocelyn Benson are termed out leaving open seats. Ingham County Clerk and former Michigan State Representative Barb Byrum has entered the race for Michigan Secretary of State in 2026. She joins Deputy Secretary of State Aghogho Edevbie in the Democratic race for the position. No Republicans have announced candidacies for the seat yet.
In the Michigan Attorney General race, Washtenaw County Prosecutor Eli Savit has announced his candidacy for the Democratic Party’s nomination. He joins former U.S. Attorney for the Western District of Michigan Mark Totten in that race. No Republicans have announced yet.
U.S. Representative Races – In the 10th U.S. House District currently represented by U.S. Rep. John James who is running for Governor, five Democratic candidates have filed with the Federal Elections Commission. Military veteran Alex Hawkins has already reported raising more than $200,000 in the first three months of the year. Other candidates include former Pontiac Mayor and former House Minority Leader Tim Greimel, 2024 Macomb County prosecutor candidate Christina Hines, former government official Eric Chung, and attorney Brian Steven Jaye
State Sen. Jeremy Moss announced he is running for the 11th U.S. House District in 2026. Moss (D-Southfield) is the first Democrat to announce in the seat being vacated by U.S. Rep. Haley Stevens (D-Birmingham), who is running for the U.S. Senate. No Republican has announced yet.
Open 35th State Senate Seat – State Board of Education Chair Pamela Pugh (D-Saginaw) has formed a campaign committee to run for the open 35th State Senate District seat vacated by the election of State Senator Kristen McDonald-Rivet to the U.S House of Representatives in November 2024. She is the first Democrat to move toward entering the race. The Governor has not yet announced the dates for a special election to fill the seat. The current State Senate sits at 19 Dems and 18 Republicans. If a Republican were to win the open seat, the Senate would be tied at 19-19, giving the Lt. Governor a crucial role in breaking tie votes.
(Editor’s Note: Mary Pollock is the Lansing SERA Chapter and SERA Coordinating Council’s Legislative Representative. She may be contacted at michigansera@comcast.net.)