House Passes House Bill 5803

LANSING, MI — The Michigan Association of Superintendents & Administrators (MASA), the Michigan Association of School Boards (MASB), the Michigan Association of Secondary School Principals (MASSP), the Michigan Elementary & Middle School Principals Association (MEMSPA), the Michigan Alliance for Student Opportunity (MASO), and the Michigan Association of Intermediate School Administrators (MAISA) today commended the Michigan House’s approval of House Bill 5803, sponsored by Rep. Matt Koleszar (D-Plymouth). The bill would permanently lower school districts’ payroll rate into the Michigan Public School Employee Retirement System (MPSERS) by 5.75% and eliminate the 3% salary contribution required of many public school employees for retiree health care.

Today’s House passage marks another pivotal milestone in the journey to redirect savings from MPSERS back to Michigan’s school districts, bringing the bill one step away from becoming law. By implementing a permanent rate reduction, the legislation will offer school districts stable, ongoing financial relief, enabling them to channel more funds directly into their classrooms to benefit students, teachers, and school communities alike. Furthermore, the elimination of employee contributions will help lighten the financial load on school staff, all while preserving the long-term sustainability of the MPSERS system.

With the House’s passage of HB 5803, lawmakers have acknowledged the many years of financial sacrifices made by Michigan’s public schools and their employees to fully address the MPSERS OPEB debt. By reducing the MPSERS payroll rate, this legislation will lift a considerable financial strain on schools and give a direct boost to educators’ take-home pay by eliminating the 3% employee healthcare contribution.  

We look forward to Governor Whitmer signing this bill into law.

For more information, contact MASB Director of Government Relations Jennifer Smith.