Senate Committee Relaxes 3rd Category for EVIP/Statutory Revenue Sharing

Posted on April 20, 2012 by Dene Westbrook

The Senate Appropriations Committee voted to substantially change the 3rd category for EVIP/Statutory Revenue Sharing for the 2012-13 Fiscal Year. Under the change is SB 954, local communities would be able to comply with the third category regarding employee compensation by EITHER electing to comply with the first three pension parameters in the existing EVIP language (dealing with employer contribution caps, multipliers, and final average compensation) OR by confirming they are in compliance with PA 152 (which is the health care law regarding a hard cap, 80/20 split or opt out). This new language will give communities two different avenues to take in which to comply with EVIP and obtain that third category of funds. Many members have expressed frustration with the third category parameters as being too complicated and not getting adequate feedback from th State on how to comply. So, the League is very happy that the legislature is responding. Senator Pappageorge led the charge on this issue for locals in the Senate and the League is very appreciative that we were successful in this effort! The bill now heads to the Senate floor and will likely end up in conference committee before becoming law. However, these changes have been discussed with House leaders and the Administration, so we expect the final product to be close to the drafts coming out of these committees.

Summer Minnick is Director of State Affairs fo rthe League. She can be recahed at 517-908-0301 or [email protected]

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