| 1 | | - | Substitute For HOUSE BILL NO. 6060 A bill to amend 1980 PA 300, entitled "The public school employees retirement act of 1979," by amending sections 41b, 81c, 81d, and 84 (MCL 38.1341b, 38.1381c, 38.1381d, and 38.1384), sections 41b and 81c as amended by 2017 PA 92, section 81d as amended by 2023 PA 250, and section 84 as amended by 2012 PA 300, and by adding section 69h. the people of the state of michigan enact: Sec. 41b. (1) Beginning July 1, 2010, the retirement system may determine a separate employer contribution rate for members who first became members on or after July 1, 2010 and before February 1, 2018. Except as provided in this section, the retirement system shall determine the separate employer contribution rate in the manner prescribed in section 41. (2) Beginning February 1, 2018, the retirement system shall determine a separate contribution rate for members who first became members on or after February 1, 2018. Except as provided in this section, the retirement system shall determine the separate contribution rate in the manner prescribed in section 41, except that any increase or decrease in the unfunded actuarial accrued liabilities associated with members who first became members on or after February 1, 2018 must be amortized on a 10-year level-dollar schedule with a new contribution rate calculated for each year. (3) All normal cost and any unfunded actuarial accrued liability contributions as determined under subsection (2) must be paid on a cost-sharing basis of 50% by the employer. and 50% by the employee. Except as provided in this section, contributions shall be made in the manner prescribed in section 42. An employee contribution for unfunded actuarial accrued liability must not be assessed to an employee based on any portion of an unfunded liability caused by the failure of an employer to make a required contribution. Following the determination of the cost-sharing basis under this subsection, section 41(2)(c) and (e) applies. (4) The contributions of a member for unfunded actuarial accrued liability must be treated as picked-up contributions under the internal revenue code, deducted by the employer, and remitted as employer contributions to the general fund of the retirement system and must only be used to finance unfunded actuarial accrued liabilities of the retirement system. (5) To the extent and upon approval by the Internal Revenue Service, the retirement system for the Tier 1 plan and the plan administrator for the Tier 2 plan may also determine the extent to which some or all of the individuals performing services for an entity not participating in the retirement system that receives any funding from the state school aid fund established in section 11 of article IX of the state constitution of 1963 may participate in the Tier 1 and Tier 2 plans. Sec. 69h. (1) A member who has completed 10 years of service may elect to purchase not more than 5 years of service credit less the number of years of service credit purchased under sections 6(2)(c), (d), (e), or (f), 64(3), (4), or (5), and 69c(2), or former sections 69a, 69b, 69d, 69e, 74a, 74b, 77, or 78, on request and payment to the retirement system of the full actuarial cost. In calculating full actuarial cost under section 79, the retirement board and the department shall use normal cost and unfunded actuarial accrued liability determined under section 41b(2) as of the fiscal year ending immediately before the date of purchase. (2) Service earned while a public school employee was a qualified participant only under Tier 2 must count when determining if a member has completed 10 years of service. (3) Any payment made in a manner other than a lump sum must include additional interest at the same rate used to determine actuarial cost in subsection (1). (4) Service credit purchased under this section must not be used to satisfy the service credit requirement set forth in section 81(1)(a) for a retirement allowance paid before age 56 as provided by section 43b(a). (5) If a member who made payment for service under this section dies and a retirement allowance is not payable, or if the member withdraws from service and a retirement allowance is not payable, the payment made by the member must be refunded to the member or to the member's refund beneficiary on request. Sec. 81c. (1) A member who first becomes a member on or after July 1, 2010 who no longer is working as a public school employee or in any other capacity for which service credit performed in this state is allowed under this act, on the member's written application to the retirement system, is entitled to a retirement allowance provided for in section 84(1) if the member is 60 years of age or older and has accumulated 10 or more years of credited service pursuant to section 68 as a public school employee and has reached regular retirement age. (2) The eligibility requirements of subsection (1) must not be modified as provided in section 43b. (3) The reduction provided for in section 84(2) does not apply to an individual who retires under this section. (4) Notwithstanding any other provision of this act, a member who first becomes a member on or after July 1, 2010 shall not purchase or transfer service credit under article 4 and shall not have any purchased or transferred service credit included in the calculation of a retirement allowance on retirement. (5) Beginning October 1, 2019 and for each fiscal year in which an experience investigation study is completed under section 41(16), if the most recent experience investigation study of mortality of the retirement system using a 65-year-old based on a 50-50 male-female blend shows an increase of 1 or more years from the previous experience investigation study of mortality, the retirement board, in consultation with the actuary and the department, shall increase the regular retirement age by at least 1 year up to the total increase in whole-year increments unless the most recent actuarial funded ratio for the benefits funded under section 41b(3) is greater than 100% after accounting for an increase in mortality as reflected in the experience investigation study. Any adjustment to the regular retirement age by the retirement board must take place within 12 months after the retirement board's adoption of the most recent experience investigation study on an effective date as determined by the retirement board. Any required increase to the regular retirement age under this subsection must take into account the cumulative increase in mortality relative to the experience investigation study covering the period 2012 through 2017, less any actual increase already taken into account in a previous increase to the regular retirement age. An adjustment to the regular retirement age under this subsection does not apply to a member who , on first became a member before the effective date of the increase. , is within 5 years of the then current regular retirement age. The retirement board may additionally exclude members who, on the effective date of the increase, are within between 5 and 8 years of the then current regular retirement age. (6) As used in this section, "regular retirement age" means the following: (a) For a member who first becomes a member on or after July 1, 2010 and before February 1, 2018, before the effective date of the first increase under subsection (5), 60 years of age and is not subject to increase as provided under subsection (5). (b) Subject to subsection (5), for For a member who first becomes a member on or after February 1, 2018, 60 years of age.the effective date of an increase under subsection (5), the regular retirement age as it existed immediately before the date that the member first became a member. Sec. 81d. (1) Except as provided in subsection (8), (9), the retirement system shall permit each qualified participant who first becomes a qualified participant and first works for a reporting unit after September 3, 2012 to make an election to not become a member of Tier 1 and become only a qualified participant in Tier 2. (2) The retirement system shall determine a method of accepting elections under subsection (1) and reporting units shall secure those elections during the period beginning on the date of the individual's employment and ending on the expiration of 75 days from the individual's first payroll date. An election under subsection (1) is irrevocable. The retirement system shall provide a form on which each qualified participant who first becomes a qualified participant and first works for a reporting unit after January 31, 2018 and before July 1, 2024 may make an election under subsection (1). The form described in this subsection must be accompanied by a description of the benefit options. The form must include an acknowledgment that the qualified participant has received the description of the benefit options. (3) A qualified participant who first becomes a qualified participant and first works for a reporting unit after September 3, 2012 and before February 1, 2018 who does not make an election under subsection (1) for any reason on or before the close of the election period is considered to have made an election to become a member of Tier 1 and is subject to all of the following as of the date of his or her employment: (a) The qualified participant is eligible to accrue any service credit or qualify for any retirement allowance under Tier 1 under the terms as provided in section 81c. (b) The qualified participant is also a qualified participant under Tier 2. (4) A qualified participant who first becomes a qualified participant and first works for a reporting unit after January 31, 2018 and before July 1, 2024 who does not make an election for any reason on or before the close of the election period is considered to have made an election to become only a qualified participant in Tier 2. (5) An individual who makes the election under subsection (1) on or before the close of the election period or is a qualified participant described in subsection (4) is considered to have made an election to not become a member of Tier 1 and is subject to all of the following as of the date of his or her employment: (a) The individual is not eligible to accrue any service credit or qualify for any retirement allowance under Tier 1 under the terms as provided in section 81c. (b) The individual is only a qualified participant under Tier 2. (6) A qualified participant who first becomes a qualified participant and first works for a reporting unit after June 30, 2024 who does not make an election under subsection (1) for any reason on or before the close of the election period is considered to have made an election to become a member of Tier 1 and is subject to all of the following as of the date of the qualified participant's employment: (a) The qualified participant is eligible to accrue any service credit or qualify for any retirement allowance under Tier 1 under the terms as provided in section 81c. (b) The qualified participant is also a qualified participant under Tier 2. (7) The retirement system shall collect from an individual described in subsection (1) all amounts required under sections 43a and 131(2) and shall collect all required employer contributions required under Tier 1 from the individual's date of employment. If an individual makes a valid election under subsection (1) to not become a member of Tier 1 or is a qualified participant under subsection (4), the retirement system shall determine and implement a method to reconcile employer and employee contributions to be deposited to Tier 2, and any such employee contributions will be considered to be elective contributions under section 131. (8) The retirement system shall provide to a qualified participant who before July 1, 2025 either elected, or under subsection (4) was considered to have made an election, to become only a qualified participant in Tier 2. A qualified participant who affirmatively makes a timely election in accordance with the process established by the retirement system is subject to all of the following as of the date of the qualified participant's changeover to Tier 1: (a) Commencing as of the changeover date, the qualified participant is eligible to accrue service credit or qualify for any retirement allowance under Tier 1 under the terms as provided in section 81c. (b) Only service credited and compensation earned after the changeover date shall be used to determine the qualified participant's retirement allowance under section 84. (c) Notwithstanding sections 42(2) and 41b(4), a qualified participant shall contribute the qualified participant's contribution amount under section 41b(3) on a post-tax basis until such time as the department receives notification from the United States Internal Revenue Service that contributions under this subsection may be picked up by a reporting unit and will not be included as gross income of the member until they are distributed or made available to the member, retirant, retirement allowance beneficiary, or refund beneficiary. (d) The qualified participant is also a qualified participant under Tier 2. (e) The 1-time election period ends not later than August 1, 2025 and the changeover date is August 30, 2025. (9) (8) A qualified participant who first becomes a qualified participant and first works for a reporting unit following the effective date of the qualifying event is only a Tier 2 qualified participant and is considered to have made an election to become only a qualified participant in Tier 2. This subsection does not apply after the effective date of the amendatory act that added this sentence. As used in this subsection: (a) "Effective date of the qualifying event" means 12 months after the date that the retirement board receives the valuation report showing that the qualifying event has occurred. (b) "Qualifying event" means the date on which the actuarial funded ratio for the plan for which the separate contribution rate is calculated under section 41b(2) falls below 85% for 2 consecutive years, based on the actuarial funded ratio using 5-year smoothing of investment returns. For purposes of valuation under this subdivision, the qualifying event does not occur if either of the following applies: (i) The actuarial funded ratio falls below 85% but would not have fallen below 85% but for the failure of the employer or this state to make a required contribution as calculated under section 41b. (ii) This state makes an appropriation to the plan described under this subdivision that increases the valuation as described under this subsection to 85% or higher. Sec. 84. (1) Subject to section sections 84b and 81d(8)(b), and except as provided in subsection (2), upon on the member's retirement from service as provided in section 81, a member shall must receive a retirement allowance that equals the product of the member's total years, and fraction of a year, of credited service multiplied by 1.5% of the member's final average compensation. A member shall is not be allowed to use more than 15 years of out of system public education service, or more out of system public education service than service performed under this act or former 1945 PA 136 unless, before July 1, 1974, the member applied for out of system public education service credit based upon on payment of contributions for the service as required under section 69, or former acts, in which case the total out of system public education service credited, not to exceed 15 years, shall must be used to compute the member's retirement allowance if the minimum service requirements performed under this act or former acts or as a state employee under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, are met. Credit for state of Michigan service shall must be on the same basis for eligibility for retirement provided in this act as if the service were performed under this act, former 1945 PA 136, former 1941 PA 56, or former 1937 PA 184. (2) If a member having less than 30 years credited service retires before the member's sixtieth birthday as provided in section 81, the member's retirement allowance provided in subsection (1) shall must be reduced 1/2 of 1% for each month, and fraction of a month, within the period from the effective date of the member's retirement to the date of the member's sixtieth birthday, and shall must continue at that same percentage after becoming 60 years of age. (3) The reduction of 1/2 of 1% for each month and fraction of a month from the member's retirement allowance effective date to the date of the member's sixtieth birthday provided for in former 1945 PA 136, applicable to a member who retired before July 1, 1974 and before attainment of age 60, shall does not apply to a member who retired before that date, at age 55 or more, having 30 or more years of credited service. The retirement allowance shall must be recalculated disregarding the reduction and the person receiving the retirement allowance shall be is eligible to receive an adjusted retirement allowance based on the recalculation beginning January 1, 1986, but shall is not be eligible to receive the adjusted amount attributable to any month beginning before January 1, 1986. (4) The reduction provided for in subsection (2) shall does not apply to a member who retires under either section 86 or 87, or to a retirement allowance beneficiary who is granted an allowance under section 43c(c), 89, or 90. (5) The retirement allowance of a person who satisfies the requirements of this subsection shall must be recalculated based on 1.5% of final average compensation times years of credited service. The person receiving the retirement allowance shall be is eligible to receive an adjusted retirement allowance based on the recalculation beginning January 1, 1986, but shall is not be eligible to receive the adjusted amount attributable to any month beginning before January 1, 1986. A retirement allowance shall must be recalculated under this subsection if 1 of the following applies: (a) The retirement allowance was payable to a retirant or retirement allowance beneficiary under chapter II of former 1945 PA 136 and the retirement allowance effective date was on or after July 1, 1956 but before July 1, 1974. (b) The retirement allowance was payable to a plan II retirant or retirement allowance beneficiary under chapter I of former 1945 PA 136 and the retirement allowance effective date was before July 1, 1974. (6) A member retiring pursuant to under section 81 who acquires at least 5 years of combined credited service under this act or under former 1945 PA 136, and who is already in receipt of a retirement allowance under chapter II of former 1945 PA 136, may elect to return to the retirement system any retirement allowance payments received, and receive a single retirement allowance computed on the combined years of service credited under this act and any former act. |
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| 1 | + | HOUSE BILL NO. 6060 A bill to amend 1980 PA 300, entitled "The public school employees retirement act of 1979," by amending sections 4, 5, 43a, 81d, and 91a (MCL 38.1304, 38.1305, 38.1343a, 38.1381d, and 38.1391a), section 4 as amended by 2010 PA 75, section 5 as amended by 2018 PA 328, section 43a as amended by 2017 PA 92, section 81d as amended by 2023 PA 250, and section 91a as amended by 2012 PA 359, and by adding sections 69h, 81e, and 81f. the people of the state of michigan enact: |
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| 19 | | - | Sec. 41b. (1) Beginning July 1, 2010, the retirement system may determine a separate employer contribution rate for members who first became members on or after July 1, 2010 and before February 1, 2018. Except as provided in this section, the retirement system shall determine the separate employer contribution rate in the manner prescribed in section 41. |
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| 37 | + | 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Sec. 4. (1) "Compound interest" means interest compounded annually on July 1 on the contributions on account as of the previous July 1 and computed at the rate of investment return determined under section 104a(1) for the last completed state fiscal year. (2) "Contributory service" means credited service other than noncontributory service. (3) "Deferred member" means a member who has ceased to be a public school employee and has satisfied the requirements of section 82 for a deferred vested service retirement allowance. (4) "Department" means the department of technology, management, and budget. (5) "Designated date" means September 30, 2006. (6) "Direct rollover" means a payment by the retirement system to the eligible retirement plan specified by the distributee. (7) "Distributee" includes a member or deferred member. Distributee also includes the member's or deferred member's surviving spouse or the member's or deferred member's spouse or former spouse under an eligible domestic relations order, with regard to the interest of the spouse or former spouse. (8) Beginning January 1, 2002, except as otherwise provided in this subsection, "eligible retirement plan" means 1 or more of the following: (a) An individual retirement account described in section 408(a) of the internal revenue code, 26 USC 408. (b) An individual retirement annuity described in section 408(b) of the internal revenue code, 26 USC 408. (c) An annuity plan described in section 403(a) of the internal revenue code, 26 USC 403. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (d) A qualified trust described in section 401(a) of the internal revenue code, 26 USC 401. (e) An annuity contract described in section 403(b) of the internal revenue code, 26 USC 403. (f) An eligible plan under section 457(b) of the internal revenue code, 26 USC 457, which that is maintained by a state, political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state and which that agrees to separately account for amounts transferred into such eligible plan under section 457(b) of the internal revenue code, 26 USC 457, from this retirement system, that accepts the distributee's eligible rollover distribution. However, in the case of for an eligible rollover distribution to a surviving spouse, an eligible retirement plan means an individual retirement account or an individual retirement annuity described above. (g) Beginning January 1, 2008, except as otherwise provided in this subsection, "eligible retirement plan" means a Roth individual retirement account as described in section 408A of the internal revenue code, 26 USC 408A. (9) Beginning January 1, 2007, "eligible rollover distribution" means a distribution of all or any portion of the balance to the credit of the distributee. Eligible rollover distribution does not include any of the following: (a) A distribution made for the life or life expectancy of the distributee or the joint lives or joint life expectancies of the distributee and the distributee's designated beneficiary. (b) A distribution for a specified period of 10 years or more. (c) A distribution to the extent that the distribution is required under section 401(a)(9) of the internal revenue code, 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 USC 401. (d) The portion of any distribution that is not includable in federal gross income, except to the extent such portion of the distribution is paid to any of the following: (i) An individual retirement account or annuity described in section 408(a) or 408(b) of the internal revenue code, 26 USC 408. (ii) A qualified plan described in section 401(a) of the internal revenue code, 26 USC 401, or an annuity contract described in section 403(b) of the internal revenue code, 26 USC 403, and the plan providers agree to separately account for the amounts paid, including any portion of the distribution that is includable in federal gross income, and the portion of the distribution which that is not so includable. (10) "Employee organization professional services leave" or "professional services leave" means a leave of absence that is renewed annually by the reporting unit so that a member may accept a position with a public school employee organization to which he or she the member belongs and which that represents employees of a reporting unit in employment matters. The member shall must be included in membership of the retirement system during a professional services leave if all of the conditions of section 71(5) and (6) are satisfied. (11) "Employee organization professional services released time" or "professional services released time" means a portion of the school fiscal year during which a member is released by the reporting unit from his or her the member's regularly assigned duties to engage in employment matters for a public school employee organization to which he or she the member belongs. The member's compensation received or service rendered, or both, as applicable, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 by a member while on professional services released time shall must be reportable to the retirement system if all of the conditions of section 71(5) and (6) are satisfied. (12) "Final average compensation" means the aggregate amount of a member's compensation earned within the averaging period in which the aggregate amount of compensation was highest divided by the member's number of years, including any fraction of a year, of credited service during the averaging period. The Except as otherwise provided in this subsection, the averaging period shall must be 36 consecutive calendar months if the member contributes to the member investment plan except for a member who contributes to the member investment plan and first became a member on or after July 1, 2010; otherwise, the averaging period shall must be 60 consecutive calendar months. A member who contributes to the member investment plan and first became a member on or after July 1, 2010 shall must also have an averaging period of 60 consecutive calendar months. For a member who first became a member on or after October 1, 2025, the averaging period must be 36 calendar months. If the member has less than 1 year of credited service in the averaging period, the number of consecutive calendar months in the averaging period shall must be increased to the lowest number of consecutive calendar months that contains 1 year of credited service. (13) "Health benefits" means hospital, medical-surgical, and sick care benefits and dental, vision, and hearing benefits for retirants, retirement allowance beneficiaries, and health insurance dependents provided pursuant to section 91. (14) "Internal revenue code" means the United States internal revenue code of 1986. (15) "Long-term care insurance" means group insurance that is 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 authorized by the retirement system for retirants, retirement allowance beneficiaries, and health insurance dependents, as that term is defined in section 91, to cover the costs of services provided to retirants, retirement allowance beneficiaries, and health insurance dependents, from nursing homes, assisted living facilities, home health care providers, adult day care providers, and other similar service providers. (16) "Member investment plan" means the program of member contributions described in section 43a. Sec. 5. (1) "Member" means a public school employee, except that member does not include any of the following: (a) An individual enrolled in a neighborhood youth corps program operated with funds from the federal office of economic opportunity or an individual enrolled in a comparable youth training program designed to prevent high school dropouts and rehabilitate high school dropouts operated by an intermediate school district. (b) An individual enrolled in a transitional public employment program and employed by a reporting unit. (c) An individual employed by a reporting unit while enrolled as a full-time student in that same reporting unit. (d) An individual who elects to participate in the optional retirement program under the optional retirement act of 1967, 1967 PA 156, MCL 38.381 to 38.388. (e) A retirant of this retirement system. (f) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit through a summer youth employment program established under the Michigan youth corps act, 1983 PA 69, MCL 409.221 to 409.229. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (g) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit to administer a program described in subdivision (f), (h), (i), (j), or (k). (h) After September 30, 1983, an individual, not regularly employed by a reporting unit, who is employed by a reporting unit through participation in a program established under the former job training partnership act, Public Law 97-300, 96 Stat 1322 or beginning July 1, 2000, the workforce investment act of 1998, Public Law 105-220, 112 Stat 936. (i) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit through participation in a program established under the PATH program under section 57f of the social welfare act, 1939 PA 280, MCL 400.57f. (j) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit through participation in a program established under the Michigan community service corps program, first established under sections 25 to 35 of 1983 PA 259. (k) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit through participation in a program established under the older American community service employment program under the older American community service employment act, title V of the older Americans act of 1965, Public Law 89-73, 42 USC 3056 to 3056p. (l) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit in a temporary, intermittent, or irregular seasonal or athletic position and who is under the age of 19 years. (m) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit only in a temporary position to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 assist in the conduct of a school election. (n) A qualified participant who makes a valid election under section 81d(1) to not become a member of Tier 1. (o) A qualified participant who is not a member of Tier 1 under section 81d(4). (p) A qualified participant who makes a valid election under section 81e to not become a member of Tier 1. (q) (p) Beginning with the effective date of the amendatory act that added section 42a, December 28, 2018, an individual employed by a reporting unit while enrolled as a student in that same reporting unit if the student's services in the employ of the reporting unit are excepted from employment as described in 26 CFR 31.3121(b)(10)-2. However, an individual who, on the effective date of the amendatory act that added section 42a, December 28, 2018, is a member and is employed by a reporting unit while enrolled as a student in that same reporting unit and the student's services in the employ of the reporting unit are excepted from employment as described in 26 CFR 31.3121(b)(10)-2 will remain a member while employed as described in this subdivision if the individual elects to remain a member. The retirement system shall determine a method of administering elections under this subdivision. (2) "Membership service" means service performed after June 30, 1945. (3) "Noncontributory plan" means the plan which that began between July 1, 1974 and July 1, 1977, in which the reporting unit elected to discontinue withholding contributions from employees' compensation. (4) "Noncontributory service" means credited service rendered under the noncontributory plan. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (5) "Nonteacher" means an individual employed by a reporting unit who is not a teacher as defined in section 8. Sec. 43a. (1) The contributions of a member who contributes to the member investment plan must be deducted by the employer and remitted as employer contributions to the retirement system pursuant to section 42. A member who contributes to the member investment plan is entitled to the benefits provided in sections 43b and 43c. (2) Except as otherwise provided in subsection (7), a member who first became a member on or before December 31, 1989 and who elected or elects on or before December 31, 1989 to contribute to the member investment plan shall contribute 3.9% of the member's compensation to the member investment plan. (3) Except as otherwise provided in subsection (7), a member who first became a member on or before December 31, 1986 but did not perform membership service between December 31, 1986 and January 1, 1990, and who returns to membership service on or after January 1, 1990 and before July 1, 2008, shall make the contributions described in subsection (5). (4) Except as otherwise provided in subsection (7), a member who first became a member on or after January 1, 1990 and before July 1, 2008 shall make the contributions described in subsection (5). (5) Except as otherwise provided in subsection (7), a member who first became a member on or after January 1, 1990 and before July 1, 2008 shall contribute the following amounts to the member investment plan: Member's annual school fiscal Amount payable to the member year earned compensation investment plan 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Not over $5,000.00 3% of member's compensation Over $5,000.00 but not over $150.00, plus 3.6% of the $15,000.00 excess over $5,000.00 Over $15,000.00 $510.00, plus 4.3% of the excess over $15,000.00 (6) Except as otherwise provided in subsection (7), a member who first became a member on or after July 1, 2008 and before February 1, 2018 shall contribute the following amounts to the member investment plan: Member's annual school Amount payable to the member fiscal year earned compensation investment plan Not over $5,000.00 3% of member's compensation Over $5,000.00 but not over $150.00, plus 3.6% of excess $15,000.00 over $5,000.00 Over $15,000.00 $510.00, plus 6.4% of the excess over $15,000.00 (7) Beginning on the transition date, a member described in subsections (2) to (6) who makes the election under section 59(1) and who does not make the attainment date designation under section 59(1) shall contribute the percentage of the member's annual school fiscal year earned compensation to the retirement system as prescribed in section 43g until termination of employment. Beginning on the transition date, a member described in subsections (2) to (6) who makes the election and attainment date designation under section 59(1) shall contribute the percentage of the member's annual school fiscal year earned compensation to the retirement system as prescribed in section 43g until his or her the member's attainment date and shall contribute the percentage of the member's annual school fiscal year earned compensation to the retirement 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 system as prescribed in this section on and after his or her the member's attainment date until termination of employment. Beginning on the transition date, a member described in subsections (2) to (6) who makes or is considered to have made the alternative election under section 59(2)(a) shall continue to contribute the percentage of the member's annual school fiscal year earned compensation to the retirement system as prescribed in this section until termination of employment. Beginning on the transition date, a member described in subsections (2) to (6) who makes the alternative election under section 59(2)(b) shall not contribute any percentage of the member's annual school fiscal year earned compensation to the retirement system under this section or section 43g. (8) A member who first became a member on or after February 1, 2018 shall contribute his or her normal cost contribution amounts to the member investment plan as described in section 41b(3). This subsection does not apply after the effective date of the amendatory act that added section 69h. Sec. 69h. A member who makes an election to be a member of Tier 1 under section 81f may purchase up to 5 years of service credit in a manner determined by the retirement system. Sec. 81d. (1) Except as provided in subsection (8) and section 81e, the retirement system shall permit each qualified participant who first becomes a qualified participant and first works for a reporting unit after September 3, 2012 to make an election to not become a member of Tier 1 and become only a qualified participant in Tier 2. (2) The retirement system shall determine a method of accepting elections under subsection (1) and reporting units shall 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 secure those elections during the period beginning on the date of the individual's employment and ending on the expiration of 75 days from the individual's first payroll date. An election under subsection (1) is irrevocable. The retirement system shall provide a form on which each qualified participant who first becomes a qualified participant and first works for a reporting unit after January 31, 2018 and before July 1, 2024 may make an election under subsection (1). The form described in this subsection must be accompanied by a description of the benefit options. The form must include an acknowledgment that the qualified participant has received the description of the benefit options. (3) A qualified participant who first becomes a qualified participant and first works for a reporting unit after September 3, 2012 and before February 1, 2018 who does not make an election under subsection (1) for any reason on or before the close of the election period is considered to have made an election to become a member of Tier 1 and is subject to all of the following as of the date of his or her employment: (a) The qualified participant is eligible to accrue any service credit or qualify for any retirement allowance under Tier 1 under the terms as provided in section 81c. (b) The qualified participant is also a qualified participant under Tier 2. (4) A qualified participant who first becomes a qualified participant and first works for a reporting unit after January 31, 2018 and before July 1, 2024 who does not make an election for any reason on or before the close of the election period is considered to have made an election to become only a qualified participant in Tier 2. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (5) An individual who makes the election under subsection (1) on or before the close of the election period or is a qualified participant described in subsection (4) is considered to have made an election to not become a member of Tier 1 and is subject to all of the following as of the date of his or her employment: (a) The individual is not eligible to accrue any service credit or qualify for any retirement allowance under Tier 1 under the terms as provided in section 81c. (b) The individual is only a qualified participant under Tier 2. (6) A qualified participant who first becomes a qualified participant and first works for a reporting unit after June 30, 2024 who does not make an election under subsection (1) for any reason on or before the close of the election period is considered to have made an election to become a member of Tier 1 and is subject to all of the following as of the date of the qualified participant's employment: (a) The qualified participant is eligible to accrue any service credit or qualify for any retirement allowance under Tier 1 under the terms as provided in section 81c. (b) The qualified participant is also a qualified participant under Tier 2. (7) The retirement system shall collect from an individual described in subsection (1) all amounts required under sections 43a and 131(2) and shall collect all required employer contributions required under Tier 1 from the individual's date of employment. If an individual makes a valid election under subsection (1) to not become a member of Tier 1 or is a qualified participant under subsection (4), the retirement system shall determine and implement 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 a method to reconcile employer and employee contributions to be deposited to Tier 2, and any such employee contributions will be considered to be elective contributions under section 131. (8) A qualified participant who first becomes a qualified participant and first works for a reporting unit following the effective date of the qualifying event is only a Tier 2 qualified participant and is considered to have made an election to become only a qualified participant in Tier 2. As used in this subsection: (a) "Effective date of the qualifying event" means 12 months after the date that the retirement board receives the valuation report showing that the qualifying event has occurred. (b) "Qualifying event" means the date on which the actuarial funded ratio for the plan for which the separate contribution rate is calculated under section 41b(2) falls below 85% for 2 consecutive years, based on the actuarial funded ratio using 5-year smoothing of investment returns. For purposes of valuation under this subdivision, the qualifying event does not occur if either of the following applies: (i) The actuarial funded ratio falls below 85% but would not have fallen below 85% but for the failure of the employer or this state to make a required contribution as calculated under section 41b. (ii) This state makes an appropriation to the plan described under this subdivision that increases the valuation as described under this subsection to 85% or higher. Sec. 81e. (1) The retirement system shall permit each qualified participant who first becomes a qualified participant and first works for a reporting unit after September 30, 2025 to make an election to become 1 of the following: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (a) Only a qualified participant in Tier 2. (b) A qualified participant in Tier 2 and a member in Tier 1. (c) Only a member of Tier 1. (2) The retirement system shall determine a method of accepting elections under subsection (1) and reporting units shall secure those elections during the period beginning on the date of the individual's employment and ending on the expiration of 75 days from the individual's first payroll date. An election under subsection (1) is irrevocable. The retirement system shall provide a form on which each qualified participant who first becomes a qualified participant and first works for a reporting unit after September 30, 2025 may make an election under subsection (1). The form described in this subsection must be accompanied by a description of the benefit options. The form must include an acknowledgment that the qualified participant has received the description of the benefit options. Sec. 81f. (1) The retirement system shall provide an opportunity for each qualified participant who is a qualified participant on December 31, 2024 to elect in writing to terminate participation in Tier 2 and elect to become a member in Tier 1. An election made by a qualified participant under this subsection is irrevocable. The retirement system shall accept written elections under this subsection from members during the period beginning on January 1, 2025 and ending on April 1, 2025. A qualified participant who does not make a written election or who does not file the election during the period specified in this subsection continues to be a qualified participant in Tier 2. A qualified participant who makes and files a written election under this subsection elects to do all of the following: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (a) Cease to be a qualified participant in Tier 2 effective 12 midnight, March 31, 2025. (b) Become a member of Tier 1 effective 12:01 a.m., April 1, 2025. (2) After consultation with the retirement system's actuary and the retirement board, the department of technology, management, and budget shall determine the method by which a qualified participant shall make a written election under this section. If the qualified participant is married at the time of the election, the election is not effective unless the election is signed by the individual's spouse. However, the retirement board may waive this requirement if the spouse's signature cannot be obtained because of extenuating circumstances. (3) The service credit for a qualified participant who elects to make an election under this section to become a member of Tier 1 must not be used for either of the following: (a) Satisfying the minimum number of years of service credit required to receive a retirement allowance under this act. (b) Calculating the member's retirement allowance. (4) An election under this section is subject to the eligible domestic relations order act, 1991 PA 46, MCL 38.1701 to 38.1711. (5) If the department of technology, management, and budget receives notification from the United States Internal Revenue Service that this section or any portion of this section will cause the retirement system to be disqualified for tax purposes under the internal revenue code, then the portion that will cause the disqualification does not apply. Sec. 91a. (1) An individual who first became a member or qualified participant on or after September 4, 2012 or who made the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 election under subsection (5) shall not receive any health insurance coverage premium from the retirement system for any benefits under section 91 or as a result of benefits provided under section 86, 87, or 89. In lieu of any of these benefits that might have been paid by the retirement system, a member's or qualified participant's employer shall make a matching contribution up to 2% of the member's or qualified participant's compensation to Tier 2 for each member who first became a member or qualified participant on or after September 4, 2012 or who made the election under subsection (5). A matching contribution under this subsection shall not be used as the basis for a loan from an employee's Tier 2 account. If the department or retirement system offers a health expenditure account or similar account for the purpose of managing a member's health care funds under this section, as permitted by state or federal law, the department or retirement system shall issue a request for proposals before implementation of that health expenditure account or similar account. (2) An individual who first became a member or qualified participant on or after September 4, 2012 or who made the election under subsection (5) may make a contribution up to 2% of the member's or qualified participant's compensation to a Tier 2 account. A member or qualified participant described in this subsection may make additional contributions to his or her Tier 2 account as permitted by the department and the internal revenue code. (3) Except as otherwise provided in this subsection, a member or qualified participant is vested in contributions made to his or her Tier 2 account under subsections (1) and (2) according to the vesting provisions under section 132. A member who is eligible for 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 the payment of health insurance coverage premiums by the retirement system as a result of benefits provided under section 90 is not vested in any employer contributions under subsection (1) and forfeits the employer contributions and earnings on those contributions. (4) The contributions described in this section shall begin with the first payroll date after the member or qualified participant is employed or on or after the transition date for a member who makes the election under subsection (5) and end upon his or her termination of employment. (5) Except as otherwise provided in this section, beginning September 4, 2012 and ending at 5 p.m. eastern standard time on January 9, 2013, the retirement system shall permit each qualified member to make an election to opt out of health insurance coverage premiums that would have been paid by the retirement system under section 91 and opt into the Tier 2 account provisions of this section effective on the transition date. A qualified member who makes the election under this subsection shall cease accruing years of service credit for purposes of calculating a portion of the health insurance coverage premiums that would have been paid by the retirement system under section 91 as if that section continued to apply. (6) A qualified member who does not make the election under subsection (5) continues to be eligible for the payment of health insurance coverage premiums by the retirement system under section 91 and is not eligible for the Tier 2 account provisions of this section. An individual who is not a qualified member, who is a former member on September 3, 2012, and who is reemployed by an employer on or after September 4, 2012 shall be treated in the same 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 manner as a member described in this subsection who did not make the election under subsection (5). (7) The retirement system shall calculate an amount to be credited to a Tier 2 account for each member who makes the election under subsection (5). The amount described in this subsection shall be an amount equal to the contributions made by the member under section 43e. A member who makes the election under subsection (5) shall cease making contributions under section 43e as determined by the retirement system, but no later than the first payroll date after the transition date. The amount calculated under this subsection shall be deposited as an employer contribution into the member's Tier 2 account as determined by the retirement system, but no later than the first payroll date after March 1, 2013. A member is immediately 100% vested in amounts deposited to his or her Tier 2 account under this subsection. (8) A member or former member who does not make the election under subsection (5), who is 60 years of age or older, who does not qualify for the payment of health insurance coverage premiums by the retirement system under section 91, and who files an application with the retirement system on or after termination of employment shall receive a separate retirement allowance as calculated under this subsection. Except as otherwise provided under this subsection, the separate retirement allowance under this subsection shall be paid for 60 months and shall be equal to 1/60 of the amount equal to the contributions made by the member under section 43e. The retirement system may pay out de minimus amounts as a lump sum as determined by the retirement system and as permitted by the internal revenue code. A member receiving a separate retirement allowance under this subsection shall not 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 subsequently receive the payment of health insurance coverage premiums by the retirement system under section 91. A member who dies before qualifying for the payment of health insurance coverage premiums by the retirement system under section 91 shall have a separate retirement allowance as provided in this subsection paid to the member's beneficiary upon application to the retirement system. A member who qualifies for the payment of health insurance coverage premiums by the retirement system under section 91 but who dies before the payment of health insurance coverage premiums by the retirement system in an amount equal to or greater than the amounts contributed under section 43e shall have a separate retirement allowance as provided in this subsection paid to the member's beneficiary following the cessation of health insurance coverage premiums paid by the retirement system in an amount equal to the difference between the health insurance coverage premiums paid by the retirement system under section 91 and contributions made by the member under section 43e. The amount of the separate retirement allowance as determined under this subsection shall be increased in a manner as determined by the retirement system by a percentage equal to 1.5% multiplied by the total number of years that member made contributions under section 43e. (9) A member or former member who has a break in service and is reemployed retains the same election that the member made under this section before the break in service. If the member made the election under subsection (5), the member shall continue to receive the Tier 2 account contributions as provided in subsections (1) and (2). If the member did not make the election under subsection (5), the member shall continue to make the contributions as provided under section 43e and is subject to subsection (8), if applicable. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (10) In lieu of any other health insurance coverage premium that might have been paid by the retirement system under section 91, a credit to a health reimbursement account within the trust created under the public employee retirement health care funding act, 2010 PA 77, MCL 38.2731 to 38.2747, shall be made by the retirement system in the amounts and to the members or qualified participants as follows: (a) Two thousand dollars to an individual who first became a member or qualified participant on or after September 4, 2012, who is 60 years of age or older, and who has at least 10 years of service at his or her first termination of employment. (b) One thousand dollars to an individual who first became a member or qualified participant on or after September 4, 2012, who is less than 60 years of age, and who has at least 10 years of service at his or her first termination of employment. (11) The retirement system shall determine a method to implement subsections (5) to (10), including a method for crediting the amounts in those subsections to comply with any restrictions imposed by the internal revenue code. Notwithstanding any provision of this act to the contrary, the Tier 2 plan provisions of this section shall be implemented by the department as soon as feasible but not later than January 1, 2013. (12) Subsections (5) to (10) do not apply to a member who is eligible for the payment of health insurance coverage premiums by the retirement system as a result of benefits provided under section 90. (13) On or before July 1, 2017, the retirement system shall provide a report to the chairs of the house and senate appropriations committees that provides the projected impact of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 subsection (10) as it applies to members first employed and entered upon the payroll of reporting units on or after July 1, 2017 with regard to the annual required contribution as used by the governmental accounting standards board and for purposes of the annual financial statements prepared under section 28(1). (14) This section does not apply after the effective date of the amendatory act that added this subsection. (15) (14) As used in this section: (a) "Compensation" means that term as defined in section 122(2). (b) "Qualified member" means a member who meets all of the following requirements: (i) He or she first became a member before September 4, 2012. (ii) He or she has earned service credit in the 12 months ending September 3, 2012 or was on an approved professional services or military leave of absence on September 3, 2012. |
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| 57 | | - | (2) The retirement system shall determine a method of accepting elections under subsection (1) and reporting units shall secure those elections during the period beginning on the date of the individual's employment and ending on the expiration of 75 days from the individual's first payroll date. An election under subsection (1) is irrevocable. The retirement system shall provide a form on which each qualified participant who first becomes a qualified participant and first works for a reporting unit after January 31, 2018 and before July 1, 2024 may make an election under subsection (1). The form described in this subsection must be accompanied by a description of the benefit options. The form must include an acknowledgment that the qualified participant has received the description of the benefit options. |
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| 75 | + | 19 |
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| 97 | + | Sec. 4. (1) "Compound interest" means interest compounded annually on July 1 on the contributions on account as of the previous July 1 and computed at the rate of investment return determined under section 104a(1) for the last completed state fiscal year. |
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| 98 | + | |
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| 99 | + | (2) "Contributory service" means credited service other than noncontributory service. |
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| 100 | + | |
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| 101 | + | (3) "Deferred member" means a member who has ceased to be a public school employee and has satisfied the requirements of section 82 for a deferred vested service retirement allowance. |
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| 102 | + | |
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| 103 | + | (4) "Department" means the department of technology, management, and budget. |
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| 104 | + | |
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| 105 | + | (5) "Designated date" means September 30, 2006. |
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| 106 | + | |
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| 107 | + | (6) "Direct rollover" means a payment by the retirement system to the eligible retirement plan specified by the distributee. |
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| 108 | + | |
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| 109 | + | (7) "Distributee" includes a member or deferred member. Distributee also includes the member's or deferred member's surviving spouse or the member's or deferred member's spouse or former spouse under an eligible domestic relations order, with regard to the interest of the spouse or former spouse. |
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| 110 | + | |
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| 111 | + | (8) Beginning January 1, 2002, except as otherwise provided in this subsection, "eligible retirement plan" means 1 or more of the following: |
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| 112 | + | |
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| 113 | + | (a) An individual retirement account described in section 408(a) of the internal revenue code, 26 USC 408. |
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| 114 | + | |
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| 115 | + | (b) An individual retirement annuity described in section 408(b) of the internal revenue code, 26 USC 408. |
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| 116 | + | |
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| 117 | + | (c) An annuity plan described in section 403(a) of the internal revenue code, 26 USC 403. |
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| 118 | + | |
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| 177 | + | (d) A qualified trust described in section 401(a) of the internal revenue code, 26 USC 401. |
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| 178 | + | |
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| 179 | + | (e) An annuity contract described in section 403(b) of the internal revenue code, 26 USC 403. |
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| 180 | + | |
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| 181 | + | (f) An eligible plan under section 457(b) of the internal revenue code, 26 USC 457, which that is maintained by a state, political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state and which that agrees to separately account for amounts transferred into such eligible plan under section 457(b) of the internal revenue code, 26 USC 457, from this retirement system, that accepts the distributee's eligible rollover distribution. However, in the case of for an eligible rollover distribution to a surviving spouse, an eligible retirement plan means an individual retirement account or an individual retirement annuity described above. |
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| 182 | + | |
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| 183 | + | (g) Beginning January 1, 2008, except as otherwise provided in this subsection, "eligible retirement plan" means a Roth individual retirement account as described in section 408A of the internal revenue code, 26 USC 408A. |
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| 184 | + | |
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| 185 | + | (9) Beginning January 1, 2007, "eligible rollover distribution" means a distribution of all or any portion of the balance to the credit of the distributee. Eligible rollover distribution does not include any of the following: |
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| 186 | + | |
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| 187 | + | (a) A distribution made for the life or life expectancy of the distributee or the joint lives or joint life expectancies of the distributee and the distributee's designated beneficiary. |
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| 188 | + | |
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| 189 | + | (b) A distribution for a specified period of 10 years or more. |
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| 190 | + | |
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| 191 | + | (c) A distribution to the extent that the distribution is required under section 401(a)(9) of the internal revenue code, 26 |
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| 250 | + | |
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| 251 | + | USC 401. |
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| 252 | + | |
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| 253 | + | (d) The portion of any distribution that is not includable in federal gross income, except to the extent such portion of the distribution is paid to any of the following: |
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| 254 | + | |
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| 255 | + | (i) An individual retirement account or annuity described in section 408(a) or 408(b) of the internal revenue code, 26 USC 408. |
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| 256 | + | |
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| 257 | + | (ii) A qualified plan described in section 401(a) of the internal revenue code, 26 USC 401, or an annuity contract described in section 403(b) of the internal revenue code, 26 USC 403, and the plan providers agree to separately account for the amounts paid, including any portion of the distribution that is includable in federal gross income, and the portion of the distribution which that is not so includable. |
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| 258 | + | |
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| 259 | + | (10) "Employee organization professional services leave" or "professional services leave" means a leave of absence that is renewed annually by the reporting unit so that a member may accept a position with a public school employee organization to which he or she the member belongs and which that represents employees of a reporting unit in employment matters. The member shall must be included in membership of the retirement system during a professional services leave if all of the conditions of section 71(5) and (6) are satisfied. |
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| 260 | + | |
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| 261 | + | (11) "Employee organization professional services released time" or "professional services released time" means a portion of the school fiscal year during which a member is released by the reporting unit from his or her the member's regularly assigned duties to engage in employment matters for a public school employee organization to which he or she the member belongs. The member's compensation received or service rendered, or both, as applicable, |
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| 321 | + | by a member while on professional services released time shall must be reportable to the retirement system if all of the conditions of section 71(5) and (6) are satisfied. |
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| 322 | + | |
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| 323 | + | (12) "Final average compensation" means the aggregate amount of a member's compensation earned within the averaging period in which the aggregate amount of compensation was highest divided by the member's number of years, including any fraction of a year, of credited service during the averaging period. The Except as otherwise provided in this subsection, the averaging period shall must be 36 consecutive calendar months if the member contributes to the member investment plan except for a member who contributes to the member investment plan and first became a member on or after July 1, 2010; otherwise, the averaging period shall must be 60 consecutive calendar months. A member who contributes to the member investment plan and first became a member on or after July 1, 2010 shall must also have an averaging period of 60 consecutive calendar months. For a member who first became a member on or after October 1, 2025, the averaging period must be 36 calendar months. If the member has less than 1 year of credited service in the averaging period, the number of consecutive calendar months in the averaging period shall must be increased to the lowest number of consecutive calendar months that contains 1 year of credited service. |
|---|
| 324 | + | |
|---|
| 325 | + | (13) "Health benefits" means hospital, medical-surgical, and sick care benefits and dental, vision, and hearing benefits for retirants, retirement allowance beneficiaries, and health insurance dependents provided pursuant to section 91. |
|---|
| 326 | + | |
|---|
| 327 | + | (14) "Internal revenue code" means the United States internal revenue code of 1986. |
|---|
| 328 | + | |
|---|
| 329 | + | (15) "Long-term care insurance" means group insurance that is |
|---|
| 330 | + | |
|---|
| 331 | + | 1 |
|---|
| 332 | + | |
|---|
| 333 | + | 2 |
|---|
| 334 | + | |
|---|
| 335 | + | 3 |
|---|
| 336 | + | |
|---|
| 337 | + | 4 |
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| 338 | + | |
|---|
| 339 | + | 5 |
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| 340 | + | |
|---|
| 341 | + | 6 |
|---|
| 342 | + | |
|---|
| 343 | + | 7 |
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| 344 | + | |
|---|
| 345 | + | 8 |
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| 346 | + | |
|---|
| 347 | + | 9 |
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| 348 | + | |
|---|
| 349 | + | 10 |
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| 350 | + | |
|---|
| 351 | + | 11 |
|---|
| 352 | + | |
|---|
| 353 | + | 12 |
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| 354 | + | |
|---|
| 355 | + | 13 |
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| 356 | + | |
|---|
| 357 | + | 14 |
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| 358 | + | |
|---|
| 359 | + | 15 |
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| 360 | + | |
|---|
| 361 | + | 16 |
|---|
| 362 | + | |
|---|
| 363 | + | 17 |
|---|
| 364 | + | |
|---|
| 365 | + | 18 |
|---|
| 366 | + | |
|---|
| 367 | + | 19 |
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| 368 | + | |
|---|
| 369 | + | 20 |
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| 370 | + | |
|---|
| 371 | + | 21 |
|---|
| 372 | + | |
|---|
| 373 | + | 22 |
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| 374 | + | |
|---|
| 375 | + | 23 |
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| 376 | + | |
|---|
| 377 | + | 24 |
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| 378 | + | |
|---|
| 379 | + | 25 |
|---|
| 380 | + | |
|---|
| 381 | + | 26 |
|---|
| 382 | + | |
|---|
| 383 | + | 27 |
|---|
| 384 | + | |
|---|
| 385 | + | 28 |
|---|
| 386 | + | |
|---|
| 387 | + | 29 |
|---|
| 388 | + | |
|---|
| 389 | + | authorized by the retirement system for retirants, retirement allowance beneficiaries, and health insurance dependents, as that term is defined in section 91, to cover the costs of services provided to retirants, retirement allowance beneficiaries, and health insurance dependents, from nursing homes, assisted living facilities, home health care providers, adult day care providers, and other similar service providers. |
|---|
| 390 | + | |
|---|
| 391 | + | (16) "Member investment plan" means the program of member contributions described in section 43a. |
|---|
| 392 | + | |
|---|
| 393 | + | Sec. 5. (1) "Member" means a public school employee, except that member does not include any of the following: |
|---|
| 394 | + | |
|---|
| 395 | + | (a) An individual enrolled in a neighborhood youth corps program operated with funds from the federal office of economic opportunity or an individual enrolled in a comparable youth training program designed to prevent high school dropouts and rehabilitate high school dropouts operated by an intermediate school district. |
|---|
| 396 | + | |
|---|
| 397 | + | (b) An individual enrolled in a transitional public employment program and employed by a reporting unit. |
|---|
| 398 | + | |
|---|
| 399 | + | (c) An individual employed by a reporting unit while enrolled as a full-time student in that same reporting unit. |
|---|
| 400 | + | |
|---|
| 401 | + | (d) An individual who elects to participate in the optional retirement program under the optional retirement act of 1967, 1967 PA 156, MCL 38.381 to 38.388. |
|---|
| 402 | + | |
|---|
| 403 | + | (e) A retirant of this retirement system. |
|---|
| 404 | + | |
|---|
| 405 | + | (f) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit through a summer youth employment program established under the Michigan youth corps act, 1983 PA 69, MCL 409.221 to 409.229. |
|---|
| 406 | + | |
|---|
| 407 | + | 1 |
|---|
| 408 | + | |
|---|
| 409 | + | 2 |
|---|
| 410 | + | |
|---|
| 411 | + | 3 |
|---|
| 412 | + | |
|---|
| 413 | + | 4 |
|---|
| 414 | + | |
|---|
| 415 | + | 5 |
|---|
| 416 | + | |
|---|
| 417 | + | 6 |
|---|
| 418 | + | |
|---|
| 419 | + | 7 |
|---|
| 420 | + | |
|---|
| 421 | + | 8 |
|---|
| 422 | + | |
|---|
| 423 | + | 9 |
|---|
| 424 | + | |
|---|
| 425 | + | 10 |
|---|
| 426 | + | |
|---|
| 427 | + | 11 |
|---|
| 428 | + | |
|---|
| 429 | + | 12 |
|---|
| 430 | + | |
|---|
| 431 | + | 13 |
|---|
| 432 | + | |
|---|
| 433 | + | 14 |
|---|
| 434 | + | |
|---|
| 435 | + | 15 |
|---|
| 436 | + | |
|---|
| 437 | + | 16 |
|---|
| 438 | + | |
|---|
| 439 | + | 17 |
|---|
| 440 | + | |
|---|
| 441 | + | 18 |
|---|
| 442 | + | |
|---|
| 443 | + | 19 |
|---|
| 444 | + | |
|---|
| 445 | + | 20 |
|---|
| 446 | + | |
|---|
| 447 | + | 21 |
|---|
| 448 | + | |
|---|
| 449 | + | 22 |
|---|
| 450 | + | |
|---|
| 451 | + | 23 |
|---|
| 452 | + | |
|---|
| 453 | + | 24 |
|---|
| 454 | + | |
|---|
| 455 | + | 25 |
|---|
| 456 | + | |
|---|
| 457 | + | 26 |
|---|
| 458 | + | |
|---|
| 459 | + | 27 |
|---|
| 460 | + | |
|---|
| 461 | + | 28 |
|---|
| 462 | + | |
|---|
| 463 | + | 29 |
|---|
| 464 | + | |
|---|
| 465 | + | (g) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit to administer a program described in subdivision (f), (h), (i), (j), or (k). |
|---|
| 466 | + | |
|---|
| 467 | + | (h) After September 30, 1983, an individual, not regularly employed by a reporting unit, who is employed by a reporting unit through participation in a program established under the former job training partnership act, Public Law 97-300, 96 Stat 1322 or beginning July 1, 2000, the workforce investment act of 1998, Public Law 105-220, 112 Stat 936. |
|---|
| 468 | + | |
|---|
| 469 | + | (i) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit through participation in a program established under the PATH program under section 57f of the social welfare act, 1939 PA 280, MCL 400.57f. |
|---|
| 470 | + | |
|---|
| 471 | + | (j) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit through participation in a program established under the Michigan community service corps program, first established under sections 25 to 35 of 1983 PA 259. |
|---|
| 472 | + | |
|---|
| 473 | + | (k) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit through participation in a program established under the older American community service employment program under the older American community service employment act, title V of the older Americans act of 1965, Public Law 89-73, 42 USC 3056 to 3056p. |
|---|
| 474 | + | |
|---|
| 475 | + | (l) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit in a temporary, intermittent, or irregular seasonal or athletic position and who is under the age of 19 years. |
|---|
| 476 | + | |
|---|
| 477 | + | (m) An individual, not regularly employed by a reporting unit, who is employed by a reporting unit only in a temporary position to |
|---|
| 478 | + | |
|---|
| 479 | + | 1 |
|---|
| 480 | + | |
|---|
| 481 | + | 2 |
|---|
| 482 | + | |
|---|
| 483 | + | 3 |
|---|
| 484 | + | |
|---|
| 485 | + | 4 |
|---|
| 486 | + | |
|---|
| 487 | + | 5 |
|---|
| 488 | + | |
|---|
| 489 | + | 6 |
|---|
| 490 | + | |
|---|
| 491 | + | 7 |
|---|
| 492 | + | |
|---|
| 493 | + | 8 |
|---|
| 494 | + | |
|---|
| 495 | + | 9 |
|---|
| 496 | + | |
|---|
| 497 | + | 10 |
|---|
| 498 | + | |
|---|
| 499 | + | 11 |
|---|
| 500 | + | |
|---|
| 501 | + | 12 |
|---|
| 502 | + | |
|---|
| 503 | + | 13 |
|---|
| 504 | + | |
|---|
| 505 | + | 14 |
|---|
| 506 | + | |
|---|
| 507 | + | 15 |
|---|
| 508 | + | |
|---|
| 509 | + | 16 |
|---|
| 510 | + | |
|---|
| 511 | + | 17 |
|---|
| 512 | + | |
|---|
| 513 | + | 18 |
|---|
| 514 | + | |
|---|
| 515 | + | 19 |
|---|
| 516 | + | |
|---|
| 517 | + | 20 |
|---|
| 518 | + | |
|---|
| 519 | + | 21 |
|---|
| 520 | + | |
|---|
| 521 | + | 22 |
|---|
| 522 | + | |
|---|
| 523 | + | 23 |
|---|
| 524 | + | |
|---|
| 525 | + | 24 |
|---|
| 526 | + | |
|---|
| 527 | + | 25 |
|---|
| 528 | + | |
|---|
| 529 | + | 26 |
|---|
| 530 | + | |
|---|
| 531 | + | 27 |
|---|
| 532 | + | |
|---|
| 533 | + | 28 |
|---|
| 534 | + | |
|---|
| 535 | + | 29 |
|---|
| 536 | + | |
|---|
| 537 | + | assist in the conduct of a school election. |
|---|
| 538 | + | |
|---|
| 539 | + | (n) A qualified participant who makes a valid election under section 81d(1) to not become a member of Tier 1. |
|---|
| 540 | + | |
|---|
| 541 | + | (o) A qualified participant who is not a member of Tier 1 under section 81d(4). |
|---|
| 542 | + | |
|---|
| 543 | + | (p) A qualified participant who makes a valid election under section 81e to not become a member of Tier 1. |
|---|
| 544 | + | |
|---|
| 545 | + | (q) (p) Beginning with the effective date of the amendatory act that added section 42a, December 28, 2018, an individual employed by a reporting unit while enrolled as a student in that same reporting unit if the student's services in the employ of the reporting unit are excepted from employment as described in 26 CFR 31.3121(b)(10)-2. However, an individual who, on the effective date of the amendatory act that added section 42a, December 28, 2018, is a member and is employed by a reporting unit while enrolled as a student in that same reporting unit and the student's services in the employ of the reporting unit are excepted from employment as described in 26 CFR 31.3121(b)(10)-2 will remain a member while employed as described in this subdivision if the individual elects to remain a member. The retirement system shall determine a method of administering elections under this subdivision. |
|---|
| 546 | + | |
|---|
| 547 | + | (2) "Membership service" means service performed after June 30, 1945. |
|---|
| 548 | + | |
|---|
| 549 | + | (3) "Noncontributory plan" means the plan which that began between July 1, 1974 and July 1, 1977, in which the reporting unit elected to discontinue withholding contributions from employees' compensation. |
|---|
| 550 | + | |
|---|
| 551 | + | (4) "Noncontributory service" means credited service rendered under the noncontributory plan. |
|---|
| 552 | + | |
|---|
| 553 | + | 1 |
|---|
| 554 | + | |
|---|
| 555 | + | 2 |
|---|
| 556 | + | |
|---|
| 557 | + | 3 |
|---|
| 558 | + | |
|---|
| 559 | + | 4 |
|---|
| 560 | + | |
|---|
| 561 | + | 5 |
|---|
| 562 | + | |
|---|
| 563 | + | 6 |
|---|
| 564 | + | |
|---|
| 565 | + | 7 |
|---|
| 566 | + | |
|---|
| 567 | + | 8 |
|---|
| 568 | + | |
|---|
| 569 | + | 9 |
|---|
| 570 | + | |
|---|
| 571 | + | 10 |
|---|
| 572 | + | |
|---|
| 573 | + | 11 |
|---|
| 574 | + | |
|---|
| 575 | + | 12 |
|---|
| 576 | + | |
|---|
| 577 | + | 13 |
|---|
| 578 | + | |
|---|
| 579 | + | 14 |
|---|
| 580 | + | |
|---|
| 581 | + | 15 |
|---|
| 582 | + | |
|---|
| 583 | + | 16 |
|---|
| 584 | + | |
|---|
| 585 | + | 17 |
|---|
| 586 | + | |
|---|
| 587 | + | 18 |
|---|
| 588 | + | |
|---|
| 589 | + | 19 |
|---|
| 590 | + | |
|---|
| 591 | + | 20 |
|---|
| 592 | + | |
|---|
| 593 | + | 21 |
|---|
| 594 | + | |
|---|
| 595 | + | 22 |
|---|
| 596 | + | |
|---|
| 597 | + | 23 |
|---|
| 598 | + | |
|---|
| 599 | + | 24 |
|---|
| 600 | + | |
|---|
| 601 | + | 25 |
|---|
| 602 | + | |
|---|
| 603 | + | 26 |
|---|
| 604 | + | |
|---|
| 605 | + | 27 |
|---|
| 606 | + | |
|---|
| 607 | + | 28 |
|---|
| 608 | + | |
|---|
| 609 | + | 29 |
|---|
| 610 | + | |
|---|
| 611 | + | (5) "Nonteacher" means an individual employed by a reporting unit who is not a teacher as defined in section 8. |
|---|
| 612 | + | |
|---|
| 613 | + | Sec. 43a. (1) The contributions of a member who contributes to the member investment plan must be deducted by the employer and remitted as employer contributions to the retirement system pursuant to section 42. A member who contributes to the member investment plan is entitled to the benefits provided in sections 43b and 43c. |
|---|
| 614 | + | |
|---|
| 615 | + | (2) Except as otherwise provided in subsection (7), a member who first became a member on or before December 31, 1989 and who elected or elects on or before December 31, 1989 to contribute to the member investment plan shall contribute 3.9% of the member's compensation to the member investment plan. |
|---|
| 616 | + | |
|---|
| 617 | + | (3) Except as otherwise provided in subsection (7), a member who first became a member on or before December 31, 1986 but did not perform membership service between December 31, 1986 and January 1, 1990, and who returns to membership service on or after January 1, 1990 and before July 1, 2008, shall make the contributions described in subsection (5). |
|---|
| 618 | + | |
|---|
| 619 | + | (4) Except as otherwise provided in subsection (7), a member who first became a member on or after January 1, 1990 and before July 1, 2008 shall make the contributions described in subsection (5). |
|---|
| 620 | + | |
|---|
| 621 | + | (5) Except as otherwise provided in subsection (7), a member who first became a member on or after January 1, 1990 and before July 1, 2008 shall contribute the following amounts to the member investment plan: |
|---|
| 622 | + | |
|---|
| 623 | + | Member's annual school fiscal Amount payable to the member |
|---|
| 624 | + | year earned compensation investment plan |
|---|
| 625 | + | |
|---|
| 626 | + | Member's annual school fiscal |
|---|
| 627 | + | |
|---|
| 628 | + | Amount payable to the member |
|---|
| 629 | + | |
|---|
| 630 | + | year earned compensation |
|---|
| 631 | + | |
|---|
| 632 | + | investment plan |
|---|
| 633 | + | |
|---|
| 634 | + | 1 |
|---|
| 635 | + | |
|---|
| 636 | + | 2 |
|---|
| 637 | + | |
|---|
| 638 | + | 3 |
|---|
| 639 | + | |
|---|
| 640 | + | 4 |
|---|
| 641 | + | |
|---|
| 642 | + | 5 |
|---|
| 643 | + | |
|---|
| 644 | + | 6 |
|---|
| 645 | + | |
|---|
| 646 | + | 7 |
|---|
| 647 | + | |
|---|
| 648 | + | 8 |
|---|
| 649 | + | |
|---|
| 650 | + | 9 |
|---|
| 651 | + | |
|---|
| 652 | + | 10 |
|---|
| 653 | + | |
|---|
| 654 | + | 11 |
|---|
| 655 | + | |
|---|
| 656 | + | 12 |
|---|
| 657 | + | |
|---|
| 658 | + | 13 |
|---|
| 659 | + | |
|---|
| 660 | + | 14 |
|---|
| 661 | + | |
|---|
| 662 | + | 15 |
|---|
| 663 | + | |
|---|
| 664 | + | 16 |
|---|
| 665 | + | |
|---|
| 666 | + | 17 |
|---|
| 667 | + | |
|---|
| 668 | + | 18 |
|---|
| 669 | + | |
|---|
| 670 | + | 19 |
|---|
| 671 | + | |
|---|
| 672 | + | 20 |
|---|
| 673 | + | |
|---|
| 674 | + | 21 |
|---|
| 675 | + | |
|---|
| 676 | + | 22 |
|---|
| 677 | + | |
|---|
| 678 | + | 23 |
|---|
| 679 | + | |
|---|
| 680 | + | 24 |
|---|
| 681 | + | |
|---|
| 682 | + | 25 |
|---|
| 683 | + | |
|---|
| 684 | + | 26 |
|---|
| 685 | + | |
|---|
| 686 | + | 27 |
|---|
| 687 | + | |
|---|
| 688 | + | 28 |
|---|
| 689 | + | |
|---|
| 690 | + | 29 |
|---|
| 691 | + | |
|---|
| 692 | + | Not over $5,000.00 3% of member's compensation |
|---|
| 693 | + | Over $5,000.00 but not over $150.00, plus 3.6% of the |
|---|
| 694 | + | $15,000.00 excess over $5,000.00 |
|---|
| 695 | + | Over $15,000.00 $510.00, plus 4.3% of the excess |
|---|
| 696 | + | over $15,000.00 |
|---|
| 697 | + | |
|---|
| 698 | + | Not over $5,000.00 |
|---|
| 699 | + | |
|---|
| 700 | + | 3% of member's compensation |
|---|
| 701 | + | |
|---|
| 702 | + | Over $5,000.00 but not over |
|---|
| 703 | + | |
|---|
| 704 | + | $150.00, plus 3.6% of the |
|---|
| 705 | + | |
|---|
| 706 | + | $15,000.00 |
|---|
| 707 | + | |
|---|
| 708 | + | excess over $5,000.00 |
|---|
| 709 | + | |
|---|
| 710 | + | Over $15,000.00 |
|---|
| 711 | + | |
|---|
| 712 | + | $510.00, plus 4.3% of the excess |
|---|
| 713 | + | |
|---|
| 714 | + | over $15,000.00 |
|---|
| 715 | + | |
|---|
| 716 | + | (6) Except as otherwise provided in subsection (7), a member who first became a member on or after July 1, 2008 and before February 1, 2018 shall contribute the following amounts to the member investment plan: |
|---|
| 717 | + | |
|---|
| 718 | + | Member's annual school Amount payable to the member |
|---|
| 719 | + | fiscal year earned compensation investment plan |
|---|
| 720 | + | Not over $5,000.00 3% of member's compensation |
|---|
| 721 | + | Over $5,000.00 but not over $150.00, plus 3.6% of excess |
|---|
| 722 | + | $15,000.00 over $5,000.00 |
|---|
| 723 | + | Over $15,000.00 $510.00, plus 6.4% of the |
|---|
| 724 | + | excess over $15,000.00 |
|---|
| 725 | + | |
|---|
| 726 | + | Member's annual school |
|---|
| 727 | + | |
|---|
| 728 | + | Amount payable to the member |
|---|
| 729 | + | |
|---|
| 730 | + | fiscal year earned compensation |
|---|
| 731 | + | |
|---|
| 732 | + | investment plan |
|---|
| 733 | + | |
|---|
| 734 | + | Not over $5,000.00 |
|---|
| 735 | + | |
|---|
| 736 | + | 3% of member's compensation |
|---|
| 737 | + | |
|---|
| 738 | + | Over $5,000.00 but not over |
|---|
| 739 | + | |
|---|
| 740 | + | $150.00, plus 3.6% of excess |
|---|
| 741 | + | |
|---|
| 742 | + | $15,000.00 |
|---|
| 743 | + | |
|---|
| 744 | + | over $5,000.00 |
|---|
| 745 | + | |
|---|
| 746 | + | Over $15,000.00 |
|---|
| 747 | + | |
|---|
| 748 | + | $510.00, plus 6.4% of the |
|---|
| 749 | + | |
|---|
| 750 | + | excess over $15,000.00 |
|---|
| 751 | + | |
|---|
| 752 | + | (7) Beginning on the transition date, a member described in subsections (2) to (6) who makes the election under section 59(1) and who does not make the attainment date designation under section 59(1) shall contribute the percentage of the member's annual school fiscal year earned compensation to the retirement system as prescribed in section 43g until termination of employment. Beginning on the transition date, a member described in subsections (2) to (6) who makes the election and attainment date designation under section 59(1) shall contribute the percentage of the member's annual school fiscal year earned compensation to the retirement system as prescribed in section 43g until his or her the member's attainment date and shall contribute the percentage of the member's annual school fiscal year earned compensation to the retirement |
|---|
| 753 | + | |
|---|
| 754 | + | 1 |
|---|
| 755 | + | |
|---|
| 756 | + | 2 |
|---|
| 757 | + | |
|---|
| 758 | + | 3 |
|---|
| 759 | + | |
|---|
| 760 | + | 4 |
|---|
| 761 | + | |
|---|
| 762 | + | 5 |
|---|
| 763 | + | |
|---|
| 764 | + | 6 |
|---|
| 765 | + | |
|---|
| 766 | + | 7 |
|---|
| 767 | + | |
|---|
| 768 | + | 8 |
|---|
| 769 | + | |
|---|
| 770 | + | 9 |
|---|
| 771 | + | |
|---|
| 772 | + | 10 |
|---|
| 773 | + | |
|---|
| 774 | + | 11 |
|---|
| 775 | + | |
|---|
| 776 | + | 12 |
|---|
| 777 | + | |
|---|
| 778 | + | 13 |
|---|
| 779 | + | |
|---|
| 780 | + | 14 |
|---|
| 781 | + | |
|---|
| 782 | + | 15 |
|---|
| 783 | + | |
|---|
| 784 | + | 16 |
|---|
| 785 | + | |
|---|
| 786 | + | 17 |
|---|
| 787 | + | |
|---|
| 788 | + | 18 |
|---|
| 789 | + | |
|---|
| 790 | + | 19 |
|---|
| 791 | + | |
|---|
| 792 | + | 20 |
|---|
| 793 | + | |
|---|
| 794 | + | 21 |
|---|
| 795 | + | |
|---|
| 796 | + | 22 |
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| 797 | + | |
|---|
| 798 | + | 23 |
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| 799 | + | |
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| 800 | + | 24 |
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| 801 | + | |
|---|
| 802 | + | 25 |
|---|
| 803 | + | |
|---|
| 804 | + | 26 |
|---|
| 805 | + | |
|---|
| 806 | + | 27 |
|---|
| 807 | + | |
|---|
| 808 | + | 28 |
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| 809 | + | |
|---|
| 810 | + | 29 |
|---|
| 811 | + | |
|---|
| 812 | + | system as prescribed in this section on and after his or her the member's attainment date until termination of employment. Beginning on the transition date, a member described in subsections (2) to (6) who makes or is considered to have made the alternative election under section 59(2)(a) shall continue to contribute the percentage of the member's annual school fiscal year earned compensation to the retirement system as prescribed in this section until termination of employment. Beginning on the transition date, a member described in subsections (2) to (6) who makes the alternative election under section 59(2)(b) shall not contribute any percentage of the member's annual school fiscal year earned compensation to the retirement system under this section or section 43g. |
|---|
| 813 | + | |
|---|
| 814 | + | (8) A member who first became a member on or after February 1, 2018 shall contribute his or her normal cost contribution amounts to the member investment plan as described in section 41b(3). This subsection does not apply after the effective date of the amendatory act that added section 69h. |
|---|
| 815 | + | |
|---|
| 816 | + | Sec. 69h. A member who makes an election to be a member of Tier 1 under section 81f may purchase up to 5 years of service credit in a manner determined by the retirement system. |
|---|
| 817 | + | |
|---|
| 818 | + | Sec. 81d. (1) Except as provided in subsection (8) and section 81e, the retirement system shall permit each qualified participant who first becomes a qualified participant and first works for a reporting unit after September 3, 2012 to make an election to not become a member of Tier 1 and become only a qualified participant in Tier 2. |
|---|
| 819 | + | |
|---|
| 820 | + | (2) The retirement system shall determine a method of accepting elections under subsection (1) and reporting units shall |
|---|
| 821 | + | |
|---|
| 822 | + | 1 |
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| 823 | + | |
|---|
| 824 | + | 2 |
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| 825 | + | |
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| 826 | + | 3 |
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| 827 | + | |
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| 828 | + | 4 |
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| 834 | + | 7 |
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| 835 | + | |
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| 836 | + | 8 |
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| 837 | + | |
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| 838 | + | 9 |
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| 839 | + | |
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| 840 | + | 10 |
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| 841 | + | |
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| 842 | + | 11 |
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| 843 | + | |
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| 844 | + | 12 |
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| 845 | + | |
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| 846 | + | 13 |
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| 847 | + | |
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| 848 | + | 14 |
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| 849 | + | |
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| 850 | + | 15 |
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| 851 | + | |
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| 852 | + | 16 |
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| 853 | + | |
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| 854 | + | 17 |
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| 855 | + | |
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| 856 | + | 18 |
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| 857 | + | |
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| 858 | + | 19 |
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| 859 | + | |
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| 860 | + | 20 |
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| 861 | + | |
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| 862 | + | 21 |
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| 863 | + | |
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| 864 | + | 22 |
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| 865 | + | |
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| 866 | + | 23 |
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| 867 | + | |
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| 868 | + | 24 |
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| 869 | + | |
|---|
| 870 | + | 25 |
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| 871 | + | |
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| 872 | + | 26 |
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| 873 | + | |
|---|
| 874 | + | 27 |
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| 875 | + | |
|---|
| 876 | + | 28 |
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| 877 | + | |
|---|
| 878 | + | 29 |
|---|
| 879 | + | |
|---|
| 880 | + | secure those elections during the period beginning on the date of the individual's employment and ending on the expiration of 75 days from the individual's first payroll date. An election under subsection (1) is irrevocable. The retirement system shall provide a form on which each qualified participant who first becomes a qualified participant and first works for a reporting unit after January 31, 2018 and before July 1, 2024 may make an election under subsection (1). The form described in this subsection must be accompanied by a description of the benefit options. The form must include an acknowledgment that the qualified participant has received the description of the benefit options. |
|---|
| 117 | | - | (6) A member retiring pursuant to under section 81 who acquires at least 5 years of combined credited service under this act or under former 1945 PA 136, and who is already in receipt of a retirement allowance under chapter II of former 1945 PA 136, may elect to return to the retirement system any retirement allowance payments received, and receive a single retirement allowance computed on the combined years of service credited under this act and any former act. |
|---|
| 1046 | + | 7 |
|---|
| 1047 | + | |
|---|
| 1048 | + | 8 |
|---|
| 1049 | + | |
|---|
| 1050 | + | 9 |
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| 1051 | + | |
|---|
| 1052 | + | 10 |
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| 1053 | + | |
|---|
| 1054 | + | 11 |
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| 1055 | + | |
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| 1056 | + | 12 |
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| 1057 | + | |
|---|
| 1058 | + | 13 |
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| 1059 | + | |
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| 1060 | + | 14 |
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| 1061 | + | |
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| 1062 | + | 15 |
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| 1063 | + | |
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| 1064 | + | 16 |
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| 1065 | + | |
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| 1066 | + | 17 |
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| 1067 | + | |
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| 1068 | + | 18 |
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| 1069 | + | |
|---|
| 1070 | + | 19 |
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| 1071 | + | |
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| 1072 | + | 20 |
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| 1073 | + | |
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| 1074 | + | 21 |
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| 1075 | + | |
|---|
| 1076 | + | 22 |
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| 1077 | + | |
|---|
| 1078 | + | 23 |
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| 1079 | + | |
|---|
| 1080 | + | 24 |
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| 1081 | + | |
|---|
| 1082 | + | 25 |
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| 1083 | + | |
|---|
| 1084 | + | 26 |
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| 1085 | + | |
|---|
| 1086 | + | 27 |
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| 1087 | + | |
|---|
| 1088 | + | 28 |
|---|
| 1089 | + | |
|---|
| 1090 | + | 29 |
|---|
| 1091 | + | |
|---|
| 1092 | + | (a) Only a qualified participant in Tier 2. |
|---|
| 1093 | + | |
|---|
| 1094 | + | (b) A qualified participant in Tier 2 and a member in Tier 1. |
|---|
| 1095 | + | |
|---|
| 1096 | + | (c) Only a member of Tier 1. |
|---|
| 1097 | + | |
|---|
| 1098 | + | (2) The retirement system shall determine a method of accepting elections under subsection (1) and reporting units shall secure those elections during the period beginning on the date of the individual's employment and ending on the expiration of 75 days from the individual's first payroll date. An election under subsection (1) is irrevocable. The retirement system shall provide a form on which each qualified participant who first becomes a qualified participant and first works for a reporting unit after September 30, 2025 may make an election under subsection (1). The form described in this subsection must be accompanied by a description of the benefit options. The form must include an acknowledgment that the qualified participant has received the description of the benefit options. |
|---|
| 1099 | + | |
|---|
| 1100 | + | Sec. 81f. (1) The retirement system shall provide an opportunity for each qualified participant who is a qualified participant on December 31, 2024 to elect in writing to terminate participation in Tier 2 and elect to become a member in Tier 1. An election made by a qualified participant under this subsection is irrevocable. The retirement system shall accept written elections under this subsection from members during the period beginning on January 1, 2025 and ending on April 1, 2025. A qualified participant who does not make a written election or who does not file the election during the period specified in this subsection continues to be a qualified participant in Tier 2. A qualified participant who makes and files a written election under this subsection elects to do all of the following: |
|---|
| 1101 | + | |
|---|
| 1102 | + | 1 |
|---|
| 1103 | + | |
|---|
| 1104 | + | 2 |
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| 1105 | + | |
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| 1106 | + | 3 |
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| 1107 | + | |
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| 1108 | + | 4 |
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| 1109 | + | |
|---|
| 1110 | + | 5 |
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| 1111 | + | |
|---|
| 1112 | + | 6 |
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| 1113 | + | |
|---|
| 1114 | + | 7 |
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| 1115 | + | |
|---|
| 1116 | + | 8 |
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| 1117 | + | |
|---|
| 1118 | + | 9 |
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| 1119 | + | |
|---|
| 1120 | + | 10 |
|---|
| 1121 | + | |
|---|
| 1122 | + | 11 |
|---|
| 1123 | + | |
|---|
| 1124 | + | 12 |
|---|
| 1125 | + | |
|---|
| 1126 | + | 13 |
|---|
| 1127 | + | |
|---|
| 1128 | + | 14 |
|---|
| 1129 | + | |
|---|
| 1130 | + | 15 |
|---|
| 1131 | + | |
|---|
| 1132 | + | 16 |
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| 1133 | + | |
|---|
| 1134 | + | 17 |
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| 1135 | + | |
|---|
| 1136 | + | 18 |
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| 1137 | + | |
|---|
| 1138 | + | 19 |
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| 1139 | + | |
|---|
| 1140 | + | 20 |
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| 1141 | + | |
|---|
| 1142 | + | 21 |
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| 1143 | + | |
|---|
| 1144 | + | 22 |
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| 1145 | + | |
|---|
| 1146 | + | 23 |
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| 1147 | + | |
|---|
| 1148 | + | 24 |
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| 1149 | + | |
|---|
| 1150 | + | 25 |
|---|
| 1151 | + | |
|---|
| 1152 | + | 26 |
|---|
| 1153 | + | |
|---|
| 1154 | + | 27 |
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| 1155 | + | |
|---|
| 1156 | + | 28 |
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| 1157 | + | |
|---|
| 1158 | + | 29 |
|---|
| 1159 | + | |
|---|
| 1160 | + | (a) Cease to be a qualified participant in Tier 2 effective 12 midnight, March 31, 2025. |
|---|
| 1161 | + | |
|---|
| 1162 | + | (b) Become a member of Tier 1 effective 12:01 a.m., April 1, 2025. |
|---|
| 1163 | + | |
|---|
| 1164 | + | (2) After consultation with the retirement system's actuary and the retirement board, the department of technology, management, and budget shall determine the method by which a qualified participant shall make a written election under this section. If the qualified participant is married at the time of the election, the election is not effective unless the election is signed by the individual's spouse. However, the retirement board may waive this requirement if the spouse's signature cannot be obtained because of extenuating circumstances. |
|---|
| 1165 | + | |
|---|
| 1166 | + | (3) The service credit for a qualified participant who elects to make an election under this section to become a member of Tier 1 must not be used for either of the following: |
|---|
| 1167 | + | |
|---|
| 1168 | + | (a) Satisfying the minimum number of years of service credit required to receive a retirement allowance under this act. |
|---|
| 1169 | + | |
|---|
| 1170 | + | (b) Calculating the member's retirement allowance. |
|---|
| 1171 | + | |
|---|
| 1172 | + | (4) An election under this section is subject to the eligible domestic relations order act, 1991 PA 46, MCL 38.1701 to 38.1711. |
|---|
| 1173 | + | |
|---|
| 1174 | + | (5) If the department of technology, management, and budget receives notification from the United States Internal Revenue Service that this section or any portion of this section will cause the retirement system to be disqualified for tax purposes under the internal revenue code, then the portion that will cause the disqualification does not apply. |
|---|
| 1175 | + | |
|---|
| 1176 | + | Sec. 91a. (1) An individual who first became a member or qualified participant on or after September 4, 2012 or who made the |
|---|
| 1177 | + | |
|---|
| 1178 | + | 1 |
|---|
| 1179 | + | |
|---|
| 1180 | + | 2 |
|---|
| 1181 | + | |
|---|
| 1182 | + | 3 |
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| 1183 | + | |
|---|
| 1184 | + | 4 |
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| 1185 | + | |
|---|
| 1186 | + | 5 |
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| 1187 | + | |
|---|
| 1188 | + | 6 |
|---|
| 1189 | + | |
|---|
| 1190 | + | 7 |
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| 1191 | + | |
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| 1192 | + | 8 |
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| 1193 | + | |
|---|
| 1194 | + | 9 |
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| 1195 | + | |
|---|
| 1196 | + | 10 |
|---|
| 1197 | + | |
|---|
| 1198 | + | 11 |
|---|
| 1199 | + | |
|---|
| 1200 | + | 12 |
|---|
| 1201 | + | |
|---|
| 1202 | + | 13 |
|---|
| 1203 | + | |
|---|
| 1204 | + | 14 |
|---|
| 1205 | + | |
|---|
| 1206 | + | 15 |
|---|
| 1207 | + | |
|---|
| 1208 | + | 16 |
|---|
| 1209 | + | |
|---|
| 1210 | + | 17 |
|---|
| 1211 | + | |
|---|
| 1212 | + | 18 |
|---|
| 1213 | + | |
|---|
| 1214 | + | 19 |
|---|
| 1215 | + | |
|---|
| 1216 | + | 20 |
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| 1217 | + | |
|---|
| 1218 | + | 21 |
|---|
| 1219 | + | |
|---|
| 1220 | + | 22 |
|---|
| 1221 | + | |
|---|
| 1222 | + | 23 |
|---|
| 1223 | + | |
|---|
| 1224 | + | 24 |
|---|
| 1225 | + | |
|---|
| 1226 | + | 25 |
|---|
| 1227 | + | |
|---|
| 1228 | + | 26 |
|---|
| 1229 | + | |
|---|
| 1230 | + | 27 |
|---|
| 1231 | + | |
|---|
| 1232 | + | 28 |
|---|
| 1233 | + | |
|---|
| 1234 | + | 29 |
|---|
| 1235 | + | |
|---|
| 1236 | + | election under subsection (5) shall not receive any health insurance coverage premium from the retirement system for any benefits under section 91 or as a result of benefits provided under section 86, 87, or 89. In lieu of any of these benefits that might have been paid by the retirement system, a member's or qualified participant's employer shall make a matching contribution up to 2% of the member's or qualified participant's compensation to Tier 2 for each member who first became a member or qualified participant on or after September 4, 2012 or who made the election under subsection (5). A matching contribution under this subsection shall not be used as the basis for a loan from an employee's Tier 2 account. If the department or retirement system offers a health expenditure account or similar account for the purpose of managing a member's health care funds under this section, as permitted by state or federal law, the department or retirement system shall issue a request for proposals before implementation of that health expenditure account or similar account. |
|---|
| 1237 | + | |
|---|
| 1238 | + | (2) An individual who first became a member or qualified participant on or after September 4, 2012 or who made the election under subsection (5) may make a contribution up to 2% of the member's or qualified participant's compensation to a Tier 2 account. A member or qualified participant described in this subsection may make additional contributions to his or her Tier 2 account as permitted by the department and the internal revenue code. |
|---|
| 1239 | + | |
|---|
| 1240 | + | (3) Except as otherwise provided in this subsection, a member or qualified participant is vested in contributions made to his or her Tier 2 account under subsections (1) and (2) according to the vesting provisions under section 132. A member who is eligible for |
|---|
| 1241 | + | |
|---|
| 1242 | + | 1 |
|---|
| 1243 | + | |
|---|
| 1244 | + | 2 |
|---|
| 1245 | + | |
|---|
| 1246 | + | 3 |
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| 1247 | + | |
|---|
| 1248 | + | 4 |
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| 1249 | + | |
|---|
| 1250 | + | 5 |
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| 1251 | + | |
|---|
| 1252 | + | 6 |
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| 1253 | + | |
|---|
| 1254 | + | 7 |
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| 1255 | + | |
|---|
| 1256 | + | 8 |
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| 1257 | + | |
|---|
| 1258 | + | 9 |
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| 1259 | + | |
|---|
| 1260 | + | 10 |
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| 1261 | + | |
|---|
| 1262 | + | 11 |
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| 1263 | + | |
|---|
| 1264 | + | 12 |
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| 1265 | + | |
|---|
| 1266 | + | 13 |
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| 1267 | + | |
|---|
| 1268 | + | 14 |
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| 1269 | + | |
|---|
| 1270 | + | 15 |
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| 1271 | + | |
|---|
| 1272 | + | 16 |
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| 1273 | + | |
|---|
| 1274 | + | 17 |
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| 1275 | + | |
|---|
| 1276 | + | 18 |
|---|
| 1277 | + | |
|---|
| 1278 | + | 19 |
|---|
| 1279 | + | |
|---|
| 1280 | + | 20 |
|---|
| 1281 | + | |
|---|
| 1282 | + | 21 |
|---|
| 1283 | + | |
|---|
| 1284 | + | 22 |
|---|
| 1285 | + | |
|---|
| 1286 | + | 23 |
|---|
| 1287 | + | |
|---|
| 1288 | + | 24 |
|---|
| 1289 | + | |
|---|
| 1290 | + | 25 |
|---|
| 1291 | + | |
|---|
| 1292 | + | 26 |
|---|
| 1293 | + | |
|---|
| 1294 | + | 27 |
|---|
| 1295 | + | |
|---|
| 1296 | + | 28 |
|---|
| 1297 | + | |
|---|
| 1298 | + | 29 |
|---|
| 1299 | + | |
|---|
| 1300 | + | the payment of health insurance coverage premiums by the retirement system as a result of benefits provided under section 90 is not vested in any employer contributions under subsection (1) and forfeits the employer contributions and earnings on those contributions. |
|---|
| 1301 | + | |
|---|
| 1302 | + | (4) The contributions described in this section shall begin with the first payroll date after the member or qualified participant is employed or on or after the transition date for a member who makes the election under subsection (5) and end upon his or her termination of employment. |
|---|
| 1303 | + | |
|---|
| 1304 | + | (5) Except as otherwise provided in this section, beginning September 4, 2012 and ending at 5 p.m. eastern standard time on January 9, 2013, the retirement system shall permit each qualified member to make an election to opt out of health insurance coverage premiums that would have been paid by the retirement system under section 91 and opt into the Tier 2 account provisions of this section effective on the transition date. A qualified member who makes the election under this subsection shall cease accruing years of service credit for purposes of calculating a portion of the health insurance coverage premiums that would have been paid by the retirement system under section 91 as if that section continued to apply. |
|---|
| 1305 | + | |
|---|
| 1306 | + | (6) A qualified member who does not make the election under subsection (5) continues to be eligible for the payment of health insurance coverage premiums by the retirement system under section 91 and is not eligible for the Tier 2 account provisions of this section. An individual who is not a qualified member, who is a former member on September 3, 2012, and who is reemployed by an employer on or after September 4, 2012 shall be treated in the same |
|---|
| 1307 | + | |
|---|
| 1308 | + | 1 |
|---|
| 1309 | + | |
|---|
| 1310 | + | 2 |
|---|
| 1311 | + | |
|---|
| 1312 | + | 3 |
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| 1313 | + | |
|---|
| 1314 | + | 4 |
|---|
| 1315 | + | |
|---|
| 1316 | + | 5 |
|---|
| 1317 | + | |
|---|
| 1318 | + | 6 |
|---|
| 1319 | + | |
|---|
| 1320 | + | 7 |
|---|
| 1321 | + | |
|---|
| 1322 | + | 8 |
|---|
| 1323 | + | |
|---|
| 1324 | + | 9 |
|---|
| 1325 | + | |
|---|
| 1326 | + | 10 |
|---|
| 1327 | + | |
|---|
| 1328 | + | 11 |
|---|
| 1329 | + | |
|---|
| 1330 | + | 12 |
|---|
| 1331 | + | |
|---|
| 1332 | + | 13 |
|---|
| 1333 | + | |
|---|
| 1334 | + | 14 |
|---|
| 1335 | + | |
|---|
| 1336 | + | 15 |
|---|
| 1337 | + | |
|---|
| 1338 | + | 16 |
|---|
| 1339 | + | |
|---|
| 1340 | + | 17 |
|---|
| 1341 | + | |
|---|
| 1342 | + | 18 |
|---|
| 1343 | + | |
|---|
| 1344 | + | 19 |
|---|
| 1345 | + | |
|---|
| 1346 | + | 20 |
|---|
| 1347 | + | |
|---|
| 1348 | + | 21 |
|---|
| 1349 | + | |
|---|
| 1350 | + | 22 |
|---|
| 1351 | + | |
|---|
| 1352 | + | 23 |
|---|
| 1353 | + | |
|---|
| 1354 | + | 24 |
|---|
| 1355 | + | |
|---|
| 1356 | + | 25 |
|---|
| 1357 | + | |
|---|
| 1358 | + | 26 |
|---|
| 1359 | + | |
|---|
| 1360 | + | 27 |
|---|
| 1361 | + | |
|---|
| 1362 | + | 28 |
|---|
| 1363 | + | |
|---|
| 1364 | + | 29 |
|---|
| 1365 | + | |
|---|
| 1366 | + | manner as a member described in this subsection who did not make the election under subsection (5). |
|---|
| 1367 | + | |
|---|
| 1368 | + | (7) The retirement system shall calculate an amount to be credited to a Tier 2 account for each member who makes the election under subsection (5). The amount described in this subsection shall be an amount equal to the contributions made by the member under section 43e. A member who makes the election under subsection (5) shall cease making contributions under section 43e as determined by the retirement system, but no later than the first payroll date after the transition date. The amount calculated under this subsection shall be deposited as an employer contribution into the member's Tier 2 account as determined by the retirement system, but no later than the first payroll date after March 1, 2013. A member is immediately 100% vested in amounts deposited to his or her Tier 2 account under this subsection. |
|---|
| 1369 | + | |
|---|
| 1370 | + | (8) A member or former member who does not make the election under subsection (5), who is 60 years of age or older, who does not qualify for the payment of health insurance coverage premiums by the retirement system under section 91, and who files an application with the retirement system on or after termination of employment shall receive a separate retirement allowance as calculated under this subsection. Except as otherwise provided under this subsection, the separate retirement allowance under this subsection shall be paid for 60 months and shall be equal to 1/60 of the amount equal to the contributions made by the member under section 43e. The retirement system may pay out de minimus amounts as a lump sum as determined by the retirement system and as permitted by the internal revenue code. A member receiving a separate retirement allowance under this subsection shall not |
|---|
| 1371 | + | |
|---|
| 1372 | + | 1 |
|---|
| 1373 | + | |
|---|
| 1374 | + | 2 |
|---|
| 1375 | + | |
|---|
| 1376 | + | 3 |
|---|
| 1377 | + | |
|---|
| 1378 | + | 4 |
|---|
| 1379 | + | |
|---|
| 1380 | + | 5 |
|---|
| 1381 | + | |
|---|
| 1382 | + | 6 |
|---|
| 1383 | + | |
|---|
| 1384 | + | 7 |
|---|
| 1385 | + | |
|---|
| 1386 | + | 8 |
|---|
| 1387 | + | |
|---|
| 1388 | + | 9 |
|---|
| 1389 | + | |
|---|
| 1390 | + | 10 |
|---|
| 1391 | + | |
|---|
| 1392 | + | 11 |
|---|
| 1393 | + | |
|---|
| 1394 | + | 12 |
|---|
| 1395 | + | |
|---|
| 1396 | + | 13 |
|---|
| 1397 | + | |
|---|
| 1398 | + | 14 |
|---|
| 1399 | + | |
|---|
| 1400 | + | 15 |
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| 1401 | + | |
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| 1402 | + | 16 |
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| 1403 | + | |
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| 1404 | + | 17 |
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| 1405 | + | |
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| 1406 | + | 18 |
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| 1407 | + | |
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| 1408 | + | 19 |
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| 1409 | + | |
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| 1410 | + | 20 |
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| 1411 | + | |
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| 1412 | + | 21 |
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| 1413 | + | |
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| 1414 | + | 22 |
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| 1415 | + | |
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| 1416 | + | 23 |
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| 1417 | + | |
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| 1418 | + | 24 |
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| 1419 | + | |
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| 1420 | + | 25 |
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| 1421 | + | |
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| 1422 | + | 26 |
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| 1423 | + | |
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| 1424 | + | 27 |
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| 1425 | + | |
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| 1426 | + | 28 |
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| 1427 | + | |
|---|
| 1428 | + | 29 |
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| 1429 | + | |
|---|
| 1430 | + | subsequently receive the payment of health insurance coverage premiums by the retirement system under section 91. A member who dies before qualifying for the payment of health insurance coverage premiums by the retirement system under section 91 shall have a separate retirement allowance as provided in this subsection paid to the member's beneficiary upon application to the retirement system. A member who qualifies for the payment of health insurance coverage premiums by the retirement system under section 91 but who dies before the payment of health insurance coverage premiums by the retirement system in an amount equal to or greater than the amounts contributed under section 43e shall have a separate retirement allowance as provided in this subsection paid to the member's beneficiary following the cessation of health insurance coverage premiums paid by the retirement system in an amount equal to the difference between the health insurance coverage premiums paid by the retirement system under section 91 and contributions made by the member under section 43e. The amount of the separate retirement allowance as determined under this subsection shall be increased in a manner as determined by the retirement system by a percentage equal to 1.5% multiplied by the total number of years that member made contributions under section 43e. |
|---|
| 1431 | + | |
|---|
| 1432 | + | (9) A member or former member who has a break in service and is reemployed retains the same election that the member made under this section before the break in service. If the member made the election under subsection (5), the member shall continue to receive the Tier 2 account contributions as provided in subsections (1) and (2). If the member did not make the election under subsection (5), the member shall continue to make the contributions as provided under section 43e and is subject to subsection (8), if applicable. |
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| 1433 | + | |
|---|
| 1434 | + | 1 |
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| 1435 | + | |
|---|
| 1436 | + | 2 |
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| 1437 | + | |
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| 1438 | + | 3 |
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| 1439 | + | |
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| 1440 | + | 4 |
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| 1441 | + | |
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| 1442 | + | 5 |
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| 1443 | + | |
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| 1444 | + | 6 |
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| 1445 | + | |
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| 1446 | + | 7 |
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| 1447 | + | |
|---|
| 1448 | + | 8 |
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| 1449 | + | |
|---|
| 1450 | + | 9 |
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| 1451 | + | |
|---|
| 1452 | + | 10 |
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| 1453 | + | |
|---|
| 1454 | + | 11 |
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| 1455 | + | |
|---|
| 1456 | + | 12 |
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| 1457 | + | |
|---|
| 1458 | + | 13 |
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| 1459 | + | |
|---|
| 1460 | + | 14 |
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| 1461 | + | |
|---|
| 1462 | + | 15 |
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| 1463 | + | |
|---|
| 1464 | + | 16 |
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| 1465 | + | |
|---|
| 1466 | + | 17 |
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| 1467 | + | |
|---|
| 1468 | + | 18 |
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| 1469 | + | |
|---|
| 1470 | + | 19 |
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| 1471 | + | |
|---|
| 1472 | + | 20 |
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| 1473 | + | |
|---|
| 1474 | + | 21 |
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| 1475 | + | |
|---|
| 1476 | + | 22 |
|---|
| 1477 | + | |
|---|
| 1478 | + | 23 |
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| 1479 | + | |
|---|
| 1480 | + | 24 |
|---|
| 1481 | + | |
|---|
| 1482 | + | 25 |
|---|
| 1483 | + | |
|---|
| 1484 | + | 26 |
|---|
| 1485 | + | |
|---|
| 1486 | + | 27 |
|---|
| 1487 | + | |
|---|
| 1488 | + | 28 |
|---|
| 1489 | + | |
|---|
| 1490 | + | 29 |
|---|
| 1491 | + | |
|---|
| 1492 | + | (10) In lieu of any other health insurance coverage premium that might have been paid by the retirement system under section 91, a credit to a health reimbursement account within the trust created under the public employee retirement health care funding act, 2010 PA 77, MCL 38.2731 to 38.2747, shall be made by the retirement system in the amounts and to the members or qualified participants as follows: |
|---|
| 1493 | + | |
|---|
| 1494 | + | (a) Two thousand dollars to an individual who first became a member or qualified participant on or after September 4, 2012, who is 60 years of age or older, and who has at least 10 years of service at his or her first termination of employment. |
|---|
| 1495 | + | |
|---|
| 1496 | + | (b) One thousand dollars to an individual who first became a member or qualified participant on or after September 4, 2012, who is less than 60 years of age, and who has at least 10 years of service at his or her first termination of employment. |
|---|
| 1497 | + | |
|---|
| 1498 | + | (11) The retirement system shall determine a method to implement subsections (5) to (10), including a method for crediting the amounts in those subsections to comply with any restrictions imposed by the internal revenue code. Notwithstanding any provision of this act to the contrary, the Tier 2 plan provisions of this section shall be implemented by the department as soon as feasible but not later than January 1, 2013. |
|---|
| 1499 | + | |
|---|
| 1500 | + | (12) Subsections (5) to (10) do not apply to a member who is eligible for the payment of health insurance coverage premiums by the retirement system as a result of benefits provided under section 90. |
|---|
| 1501 | + | |
|---|
| 1502 | + | (13) On or before July 1, 2017, the retirement system shall provide a report to the chairs of the house and senate appropriations committees that provides the projected impact of |
|---|
| 1503 | + | |
|---|
| 1504 | + | 1 |
|---|
| 1505 | + | |
|---|
| 1506 | + | 2 |
|---|
| 1507 | + | |
|---|
| 1508 | + | 3 |
|---|
| 1509 | + | |
|---|
| 1510 | + | 4 |
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| 1511 | + | |
|---|
| 1512 | + | 5 |
|---|
| 1513 | + | |
|---|
| 1514 | + | 6 |
|---|
| 1515 | + | |
|---|
| 1516 | + | 7 |
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| 1517 | + | |
|---|
| 1518 | + | 8 |
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| 1519 | + | |
|---|
| 1520 | + | 9 |
|---|
| 1521 | + | |
|---|
| 1522 | + | 10 |
|---|
| 1523 | + | |
|---|
| 1524 | + | 11 |
|---|
| 1525 | + | |
|---|
| 1526 | + | 12 |
|---|
| 1527 | + | |
|---|
| 1528 | + | 13 |
|---|
| 1529 | + | |
|---|
| 1530 | + | 14 |
|---|
| 1531 | + | |
|---|
| 1532 | + | 15 |
|---|
| 1533 | + | |
|---|
| 1534 | + | 16 |
|---|
| 1535 | + | |
|---|
| 1536 | + | subsection (10) as it applies to members first employed and entered upon the payroll of reporting units on or after July 1, 2017 with regard to the annual required contribution as used by the governmental accounting standards board and for purposes of the annual financial statements prepared under section 28(1). |
|---|
| 1537 | + | |
|---|
| 1538 | + | (14) This section does not apply after the effective date of the amendatory act that added this subsection. |
|---|
| 1539 | + | |
|---|
| 1540 | + | (15) (14) As used in this section: |
|---|
| 1541 | + | |
|---|
| 1542 | + | (a) "Compensation" means that term as defined in section 122(2). |
|---|
| 1543 | + | |
|---|
| 1544 | + | (b) "Qualified member" means a member who meets all of the following requirements: |
|---|
| 1545 | + | |
|---|
| 1546 | + | (i) He or she first became a member before September 4, 2012. |
|---|
| 1547 | + | |
|---|
| 1548 | + | (ii) He or she has earned service credit in the 12 months ending September 3, 2012 or was on an approved professional services or military leave of absence on September 3, 2012. |
|---|