Public Act (PA) 250 of 2023 was signed into law Nov. 30. The new law changes the default retirement option for employees who first work at a Michigan public school on or after July 1, 2024. For more information about the changes, you can read our legislative summary or you can review PA 250 of 2023.

Published on Nov. 30, 2023

Public Act (PA) 147 of 2023 was signed into law Oct. 10, 2023. The law changes working after retirement rules for public school retirees through Oct. 10, 2028. Under the new law, public school retirees may return to work at a reporting unit after retirement with no impact on their pension or retiree healthcare benefits if they have a bona fide termination and they either earn less than $15,100 in a calendar year from their public school employment or they’ve been retired six consecutive months. It also changed the rules for retired superintendents who return to work at a reporting unit after retirement. For more information about the changes, see PA 147 of 2023 (previously House Bill 4752 of 2023) or ORS' legislative summary.

Published on Oct. 10, 2023
Updated on Oct. 18, 2023

Public Act (PA) 4 of 2023 (formerly House Bill 4001 of 2023) was recently signed by Gov. Gretchen Whitmer. The bill did not receive sufficient votes for immediate effect; thus, it won’t be effective until 90 days after the sine die adjournment, meaning 90 days after the adjournment of the current legislative session. We expect the session will adjourn around the end of the calendar year, so the law will take effect sometime in March 2024.

PA 4 of 2023 phases in an income tax reduction over the course of four years for retirees who receive a pension, beginning with the 2023 tax year (filed in 2024). It allows retirees to choose between the limitations on the deductibility of retirement and pension income as outlined in the Income Tax Act of 1967, or the new limitations as outlined in PA 4 of 2023 (see comparison charts below). Retirees who want to use the limits of the new law should file their 2023 tax return after the law’s effective date. If filing before the law’s effective date, an amended return can be filed after PA 4 of 2023 takes effect.

For joint returns, the birth year of the older spouse can be used.

Public schools FAQs for Public Act 4 of 2023 - Retirement State Tax Changes

The Michigan Office of Retirement Services will continue to evaluate what the new law means for our members as the phase-in continues. Please consult a tax professional regarding any questions you may have. To learn more about PA 4 of 2023, see the Michigan Legislature page.

Published on March 7, 2023
Updated on May 2, 2023