This afternoon, the House Appropriations committee is taking testimony on two bills which deal with providing locals pension flexibility. The bills are HBs 5725 and 5726. HB 5726 (Rep. Opsommer, DeWitt) would allow bonding when communities switch from defined benefit to defined contribution, so communities could help smooth transition costs. A nearly identical Senate bill, SB 1129, as already passed the Senate. HB 5725 (Rep. MacGregor, Rockford) would amend the MERS statute to prohibit certain barriers that face communities which want to negotiate pension changes or more easily shop different provider by allowing a community to exit the plan with a majority vote of the governing body (rather than a vote of the people). That also has an identical bill in the Senate, SB 1171, which had a hearing in June. The League has been pushing these bills as a tool for communities which want to seek additional options when it comes to managing their pension plans. There is a sample resolution attached in this post for communities to adopt to show your support for the bills. Please send copies to me, so I can make sure your legislators see them!
Summer Minnick is Director of State Affairs for the League. She can be reached at 517-908-0301 or [email protected]