HOUSE BILL No. 4976


     June 26, 1997, Introduced by Reps. Fitzgerald, McBryde, Goschka, Hammerstrom, Byl and Raczkowski and referred to the Committee on Public Retirement.


        A bill to amend 1986 PA 182, entitled

   "State police retirement act of 1986,"

   by amending section 32 (MCL 38.1632).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 32.  (1) A member of this retirement system who has

 2    accumulated 10 or more years of retirement system service credit

 3    under this act or former  Act No. 251 of the Public Acts of 1935 

 4    1935 PA 251, or both, and who, while an employee of the depart-

 5    ment of state police, was or is drafted, enlisted, inducted, or

 6    commissioned into active duty with the military, naval, marine,

 7    or other armed service of the United States government and who is

 8    accepted for reemployment as an employee of the department of

 9    state police who subscribes to the constitutional oath of office

10    within 6 months following discharge from active service, or if

11    hospitalized at date of discharge, is accepted for reemployment


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 1    as an employee of the department who subscribes to the

 2    constitutional oath of office within 6 months following release

 3    from the military facility, shall have not more than 2 years of

 4    the active service credited as a member of the retirement system,

 5    in the same manner as if the member had served uninterruptedly.

 6    During the period of active service, and until reemployment, the

 7    member's contributions to the reserve for employee contributions

 8    shall be suspended and the member's balance in his or her account

 9    standing to the member's credit as of the last payroll date pre-

10    ceding the member's leave of absence shall be accumulated at reg-

11    ular interest.  If the member withdraws all or part of the accu-

12    mulated contributions from his or her account, the active service

13    shall not be credited until the member returns to the reserve for

14    employee contributions those amounts withdrawn, together with

15    regular interest computed from the date of withdrawal to the date

16    of repayment.

17         (2) A member of this retirement system who does not meet the

18    requirements of subsection (1) and who was drafted, enlisted,

19    inducted, or commissioned into active duty with the military or

20    other armed service of the United States government may elect to

21    receive service credit for not more than 2 years of active duty

22    upon request and payment to the retirement system of an amount

23    equal to 5% of the member's full-time compensation for the fiscal

24    year in which the payment is made multiplied by the years and

25    months the member elects to purchase up to the maximum.

26         (3) A MEMBER WHO DOES NOT MEET THE REQUIREMENTS OF

27    SUBSECTION (1) MAY ELECT TO PURCHASE SERVICE CREDIT EQUAL TO 1



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 1    YEAR OF SERVICE CREDIT FOR EVERY 3 YEARS OF ACTUAL TIME SPENT IN

 2    THE MICHIGAN NATIONAL GUARD OR A RESERVE COMPONENT OF THE ARMED

 3    FORCES OF THE UNITED STATES, OR BOTH, UPON REQUEST AND PRESENTA-

 4    TION OF ACCEPTABLE DOCUMENTATION AS DETERMINED BY THE RETIREMENT

 5    BOARD.  THE MEMBER SHALL PAY TO THE RETIREMENT SYSTEM AN AMOUNT

 6    EQUAL TO 5% OF THE MEMBER'S FULL-TIME COMPENSATION FOR THE FISCAL

 7    YEAR IN WHICH PAYMENT IS MADE MULTIPLIED BY THE NUMBER OF YEARS

 8    INCLUDING ANY FRACTION OF A YEAR OF SERVICE THAT THE MEMBER

 9    ELECTS TO PURCHASE UP TO THE MAXIMUM.  A MEMBER SHALL NOT PUR-

10    CHASE MORE THAN 2 YEARS OF SERVICE CREDIT UNDER THIS SUBSECTION,

11    LESS ANY SERVICE CREDIT PURCHASED UNDER SUBSECTION (2).

12         (4) Service shall not be credited UNDER SUBSECTION (2) OR

13    (3) if the service is or would be credited under any other feder-

14    al, state, or local publicly supported retirement system, but

15    this restriction  shall  DOES not apply to those persons who have

16    or will have acquired retirement eligibility under the federal

17    government for service in the reserve.  Armed service shall not

18    be credited under  this  subsection (2) OR (3) until the member

19    has accumulated 10 years of credited service, of which the last 5

20    are continuous.  FOR PURPOSES OF COMPUTING PAYMENT UNDER SUBSEC-

21    TION (2) OR (3), THE COMPENSATION AMOUNT USED SHALL NOT BE LESS

22    THAN THE HIGHEST FISCAL YEAR COMPENSATION PREVIOUSLY RECEIVED BY

23    THE MEMBER.

24         (5)  (3)  Service credit may be purchased under this section

25    instead of, but not in addition to, purchasing service credit

26    under section 33.





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