Man reads pension news

This Week in Pensions: September 11, 2026

Posted by

on

This week, Michigan lawmakers revived legislation to improve retirement security for corrections officers, California Governor Gavin Newsom faces a decision on a bill to enhance pension benefits for public safety workers, and New York grapples with school bus shortages.


A Message from NPPC: Remembering the Heroes on 9/11

Today, we pause to remember the lives lost on September 11, 2001, and honor the first responders, public servants, union members, and everyday Americans who answered tragedy with extraordinary courage. Twenty-five years later, we continue to recognize their service and sacrifice while keeping their families, loved ones, and all those forever affected by that day in our thoughts.


Michigan Senate Revives Retirement Legislation for Corrections Officers

The Michigan Senate has once again approved a package of nine bills, including legislation to strengthen retirement benefits for state corrections officers.

The Legislature originally approved the measures in December 2024, but the House did not formally present them to Gov. Gretchen Whitmer before the session ended. After Republicans assumed control of the House, the bills were withheld while the Senate pursued legal action seeking their delivery.

The dispute eventually reached the Michigan Supreme Court, which upheld a ruling requiring the House to transmit the bills. Whitmer vetoed the package in July, citing expired implementation dates and the administrative and legal complications caused by the delay. She later said she would sign updated versions if lawmakers returned them to her desk.

The Senate responded Thursday by passing newly introduced versions of all nine measures. Among them are bills that would allow eligible corrections officers to participate in the State Police Retirement System’s hybrid Pension Plus plan. The change is intended to recognize the physically harder and more dangerous nature of corrections work and to help the state recruit and retain qualified officers.

Meanwhile, the situation in the Michigan corrections system continues to devolve. Over the Labor Day weekend, there was a suspected homicide at the Carson City Correctional Facility. The situation has forced Whitmer’s Department of Corrections to plan to add 870 high-security beds and upgrade 30 rooms to “accommodate individuals with accessibility requirements.”

Senate Majority Leader Winnie Brinks said lawmakers continue to view the package as an important policy priority. “Today’s passage of these nine bills signals our unwavering support for the dedicated workers whose hard work and sacrifice sustain our great state,” said Brinks. “While a lengthy legal battle and veto may have delayed the passage of this quality public policy, it did not diminish its value or our commitment to getting it across the finish line. Let’s finally get this done and deliver the much-needed relief our communities have long been calling for.”

The legislation must now pass the Republican-controlled House before reaching Whitmer. House Speaker Matt Hall has suggested that movement on the bills may depend on negotiations over other Republican policy priorities, leaving their outcome uncertain.


California Public Safety Pension Bill Awaits Newsom’s Decision

California lawmakers have overwhelmingly approved legislation that would allow police officers, firefighters and other public safety employees to retire earlier with enhanced pension benefits.

Assembly Bill 1383 would let public employers negotiate a pension formula that lets newly hired public safety workers retire at 55, with benefits calculated at 3% of final compensation for each year of service. Under California’s 2013 pension reforms, newer public safety employees generally must wait until age 57 to receive the maximum 2.7% formula.

Supporters argue that the legislation would help public agencies recruit and retain workers in demanding and dangerous occupations. 

“These are not ordinary jobs,” Republican Sen. Suzette Martinez Valladares said, citing the first responders who run toward fires, violent crime and life-threatening emergencies.

The bill passed the Senate 33-0 after clearing the Assembly 70-2, demonstrating broad bipartisan support. Its provisions would still be subject to collective bargaining, meaning employers would not automatically be required to provide the maximum benefit.

The California Department of Finance nevertheless recommended that lawmakers reject the proposal. Initial estimates indicate that employers and employees would need to contribute an additional $282 million to the California Public Employees’ Retirement System to fund the lower retirement age and higher pensionable-income limits. Costs could rise further if public agencies negotiate the maximum benefits the bill authorizes.

The California Professional Firefighters strongly support the bill. Over 300 firefighters rallied in Sacramento in April to advocate for the bill. According to the union, California needs changes to its system “so that we can retire safely.” The firefighters frame the bill as lowering “the retirement age for CalPERS public safety officers and ensuring firefighters have security after their service.”

If Newsom signs AB 1383, it would represent California’s first significant enhancement of public employee pension benefits since the state enacted its 2013 reforms. The decision could also carry national political implications for Newsom, who has cultivated close relationships with organized labor while being discussed as a potential 2028 presidential candidate.

For public safety workers, however, the debate centers on a more immediate concern: whether retirement policies adequately reflect the risks, physical demands, and workforce challenges associated with their service.


Bus Driver Shortages Across Capital Region Could Signal a Crisis

As students return to classrooms, school districts across New York’s Capital Region are confronting another year of school bus driver shortages.

The persistent shortage has forced districts to combine or modify routes, rely on substitute and retired drivers, and ask other qualified employees to help transport students. In nearby East Greenbush, the shortage previously became so severe that Superintendent Kurtis Kotes obtained a commercial driver’s license so he could fill in when needed. The district was reportedly short 10 drivers despite offering full-time positions with benefits and wages of $28 per hour.

The problem extends far beyond upstate New York. Nationally, the school bus driver workforce remains below its pre-pandemic level, with retirements, split work schedules, and licensing requirements contributing to ongoing recruitment challenges.

According to Economic Policy Institute data cited by the Guardian, there were 21,000 fewer school bus drivers in the United States in August 2025 than in 2019, a 9.5% decrease.

Although retirement benefits alone cannot resolve these shortages, reliable pensions and other workplace benefits can be important recruitment and retention tools—particularly for demanding public-service positions that require specialized training and carry significant responsibility. And for districts considering outsourcing transportation services to private firms, doing so trades a solid defined benefit pension for a much weaker retirement package. Cutting compensation won’t solve a staffing crisis—especially when children’s safety is on the line. 

The situation also shows how workforce shortages affect more than staffing numbers: when districts cannot recruit and retain drivers, students and families face longer routes, delayed service, and greater uncertainty getting to school.

Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.