Category: Capitol News

By Mary Pollock Background — In 1987, the State Employee Retirement Act was amended to provide that defined benefit (DB) retirees receive a 3% or $300 (whichever is less) annual cost of living adjustment (COLA). Meanwhile, inflation has been 176.1 percent since 1987. Over 87 percent of current DB State retirees have reached the $300 cap,… Read more

By Mary Pollock SCRAP THE CAP UPDATE SERA has received the 16-page data-intensive Actuarial Study of proposed improvements in the 3 percent or $300 cap on the annual cost-of-living adjustments (COLA) for defined benefit (DB) State retirees and beneficiaries. The cap was adopted in 1987 and has never changed in the 38 years since. Inflation… Read more

By Mary Pollock SCRAP THE CAP UPDATE Upon SERA’s inquiry, we are told by Sen. Sarah Anthony’s office that the actuarial study about alternatives for defined benefit State retiree annual cost-of-living adjustments (COLA) is near completion. Sen. Anthony (D-Lansing) is the Chair of the Senate Appropriations Committee and sponsored the boilerplate in the General Government… Read more

By Mary Pollock SCRAP THE CAP UPDATE SERA has been informed by Anthony Estell, Director of the Office of Retirement Services, that the actuarial study authorized in the Fiscal Year 2024 General Government Appropriations Act should be available this month. That will trigger discussion among lawmakers, their staff, and SERA representatives as to which of… Read more

By Mary Pollock There is little time before the close of the year for the 102nd Legislature to address an avalanche of bills. All bills not approved by the end of session in December will have to be reintroduced in the 103rd Legislature after January 1, 2025. Watch the Lansing SERA Facebook page for updates… Read more

By Mary Pollock Election season means the Michigan House is not likely going to meet for roll call in October and until a couple days after the election for 2025 House leadership elections. The Michigan Senate is not facing elections this year. SCRAP THE CAP UPDATE Actuarial Study — Recall that the Governor signed the Fiscal… Read more

By Mary Pollock Although a full legislative session for September had been scheduled, election obligations are likely going to keep most legislators in their home districts most days in September and October instead of in the Capitol. VOTING PERIOD: SEPTEMBER 26 – NOVEMBER 5, 2024 Because of all the new election laws affecting voting procedures… Read more

By Mary Pollock GOVERNOR SIGNS PENSION COLA STUDY Governor Gretchen Whitmer signed the Fiscal Year (FY) 24-25 General Omnibus Appropriations Bill containing a proposed actuarial study about State employee retirees’ defined benefit annual cost of living adjustment (COLA) on Wednesday, July 24. SERA has been working on this effort since 2019. The bill was sponsored… Read more

By Mary Pollock SCRAP THE CAP UPDATE Appropriation Bills Move to Conference Committees — Our five-year effort to Scrap the Cap on the defined benefit annual cost-of-living adjustment (COLA) of $300 hit another milestone this month. The General Government appropriation bills in each chamber with boilerplate language about our actuarial study were adopted and conferees were… Read more

By Mary Pollck SCRAP THE $300 CAP UPDATE Actuarial Study — SERA has agreed that an actuarial study is needed before serious consideration of a bill like Senate Bill (SB) 775 of 2021. Therefore, our efforts in the last few months have been focused on getting language in the appropriations bills to conduct and finance this… Read more