Empowering Your Retirement Journey
Stay Informed with SERA News
Welcome to the home of the Michigan State Employee Retirees Association
UPDATE ON SCRAP THE CAP
(ANNUAL COLA IMPROVEMENT FOR DEFINED BENEFIT STATE EMPLOYEE RETIREES)
SERA has received the Actuarial Study of proposed improvements in the statutory 3% or $300 (whichever is less!) annual cost-of-living adjustment (COLA) for defined benefit (DB) state retirees and beneficiaries. The $300 cap was adopted in 1987 and has never changed in the 38 years since. Inflation has been 176.1% since 1987 and over 85 percent of DB state employee retirees are at the $300 cap. Only those with state pensions below $10,000 get the full 3% annual COLA. The average annual state pension in 2024 was $25,425.
Public Act 121 of 2024, the Fiscal Year 2024-25 General Omnibus Appropriations law sponsored by State Senator Sarah Anthony (D-Lansing), contained a provision for an actuarial study of three options for improving our COLA:
- Replacement of the current 3% or $300 cap with a cost-of-living adjustment based on the Consumer Price Index for Americans 62 years of age or older (no cap).
- Replacement of the current 3% or $300 cap with a cap of $808 which would be adjusted annually according to the Consumer Price Index for Americans 62 years of age or older.
- Replacement of the 3% or $300 cap with a 4% or $400 cap.
The Study calculated the three options using as a base our first-year pension amount and our current pension amount for six potential actuarial cost projections. Proposal D (page 9) and E (page 11) are most beneficial to retirees.
Contact your State Representative and State Senator and let them know that (1) state employee retirees in the defined benefit pension plan need an adjustment to their 1987 annual COLA capped at $300, (2) an Actuarial Study is available to project the cost to the state and its investment funds, and (3) their support is needed to include revenues in the appropriation bill for FY 2026 to fund a COLA improvement for state employee DB retirees!
Annual Update on Michigan Retirement Systems and Investments
The “INVESTMENT REPORT” about the State Employees Retirement System (which funds our defined benefit pensions) and the VOYA Defined Contribution Strategies (which funds defined contribution retiree income) was presented by Robert Brackenbury, Deputy Chief Investment Officer of the Bureau of Investments, Michigan Department of Treasury at the February 5, 2025, at the Lansing SERA General Membership meeting. The document that he referenced in his talk can be found here.
Office of Retirement Services Presentation
Anthony Estell, Director of the Office of Retirement Services, and Allison Wardlaw, ORS Plan Development and Compliance Director, made a presentation on “The Latest News and Updates on the State Employees Retirement System” to the SERA Coordinating Council on May 3, 2024. The presentation provided an overview of ORS services, some history of changes, and an explanation of the features in both the defined benefit and defined contribution retirement plans. Also included is a section on “Actuarial Process 101.” The slides used in the presentation can be found here.
New Retirement Tax Relief in Public Act 4 of 2023
Governor Whitmer signed House Bill 4001, now Public Act 4 of 2023, on March 7, 2023. It phases in over four years changes to taxation of pension and retirement income. The Michigan Department of Treasury has provided guidance on how the retirement tax relief will work.
The Office of Retirement Services has provided an explanation of how the taxation of pension income for defined benefit state employee retirees will work along with a Frequently Asked Questions feature on its Website here. The ORS chart within is shown below as a handy reference. It is also helpful for defined contribution state employee retirees.
About SERA
SERA is an non-profit organization devoted exclusively to issues and concerns of all current and future retirees of the State of Michigan.
SERA welcomes the new ideas and energy of new members! To join, contact Cheryl Streberger at 517-515-9815 or cstreberger@yahoo.com.
SERA has 15 local chapters statewide that are linked through the Coordinating Council of the State Employee Retirees Associations of Michigan (the SERA Coordinating Council). SERA chapters have periodic meetings with guest speakers, opportunities for networking, newsletters, and other activities.
SERA works through its members, leaders, and committees to promote the best interests of state employee retirees and future retirees.
At least eight times since 1974, SERA was a moving force in pension increases or benefit improvements. We opposed the recent state employee retirement system changes. That work continues
In 2011, we opposed the pension tax and helped eliminate it for 70% of retirees; we opposed the remaining tax on public pensions for those born after 1945 in the Michigan Supreme Court.
Join a chapter of the State Employee Retirees Association (SERA) and help protect your pension and health insurance benefits, meet old and new friends, and stay informed!
Join SERA
See SERA Directory to join a local chapter.
Death of a Retiree
Call ORS at 800-381-5111
Upon your death, your personal representative (family member or executor) should contact ORS as quickly as possible. We will need your social security number and a photocopy of the death certificate. See What Your Survivors Should Knowfor information to give to your survivors.
Death of a pension beneficiary. If you elected a survivor option and your pension beneficiary predeceases you, notify ORS and provide a photocopy of the death certificate so we can adjust your pension amount to the full (unreduced) straight life pension. If you elected the equated plan and your beneficiary dies before you, your benefit will revert to the straight life equated amount.
Additional information about reporting a death can be found in What Your Survivors Should Know.
If any person receiving a survivor benefit dies, ORS should be contacted immediately. We will need the social security number of the state retiree as well as that of the beneficiary who was receiving benefits, along with a photocopy of the death certificate.
ORS will stop pension payments as soon as we are notified of a death. If the death notice is not received timely, the estate is obligated to repay all payments made after death.
Death of insurance dependent. If anyone enrolled as a dependent in your health, dental, or vision insurance plan dies, report the death immediately using the Beneficiaries & Dependents section in miAccount. You must also submit a photocopy of the death certificate.