HOUSE BILL No. 5039 July 10, 1997, Introduced by Reps. Perricone, Rocca and LaForge and referred to the Committee on Public Retirement. A bill to amend 1851 PA 156, entitled "An act to define the powers and duties of the county boards of commissioners of the several counties, and to confer upon them certain local, administrative and legislative powers; and to pre- scribe penalties for the violation of the provisions of this act," by amending section 12a (MCL 46.12a), as amended by 1996 PA 390. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 12a. (1) A county board of commissioners at a lawfully 2 held meeting may do 1 or more of the following: 3 (a) Provide group life, health, accident and hospitaliza- 4 tion, and disability coverage for a county employee, retired 5 employee, or an employee of an office, board, or department of 6 the county, including the board of county road commissioners AND 7 A COMMUNITY MENTAL HEALTH AUTHORITY CREATED UNDER SECTION 205 OF 8 THE MENTAL HEALTH CODE, 1974 PA 258, MCL 330.1205, and a 9 dependent of an employee, either with or without cost 03925'97 KKR 2 1 participation by the employee, and appropriate the necessary 2 funds for the insurance. For a county with 100 employees or 3 more, self-insure for health, accident and hospitalization, and 4 group disability coverage for a county employee, retired employ- 5 ee, or an employee of an office, board, or department of the 6 county, including the board of county road commissioners AND A 7 COMMUNITY MENTAL HEALTH AUTHORITY CREATED UNDER SECTION 205 OF 8 THE MENTAL HEALTH CODE, 1974 PA 258, MCL 330.1205, and a depen- 9 dent of an employee, either with or without cost participation by 10 the employee, and appropriate the necessary funds. 11 (b) Adopt and establish a plan by which the county purchases 12 or participates in the cost of an endowment policy or retirement 13 annuity for a county employee or an employee of an office, board, 14 or department of the county, including the board of county road 15 commissioners AND A COMMUNITY MENTAL HEALTH AUTHORITY CREATED 16 UNDER SECTION 205 OF THE MENTAL HEALTH CODE, 1974 PA 258, MCL 17 330.1205, to provide monthly pension or retirement benefits for 18 each employee 60 years of age or older in an amount not to exceed 19 $150.00 per month or 2% of the average monthly earnings of the 20 employee for 5 years immediately before retirement times the 21 years of service of the employee, whichever is the lesser sum. 22 As an option, a county board of commissioners may adopt and 23 establish a plan by which the county pays pension or retirement 24 benefits to a county employee or an employee of an office, board, 25 or department of the county, including the board of county road 26 commissioners AND A COMMUNITY MENTAL HEALTH AUTHORITY CREATED 27 UNDER SECTION 205 OF THE MENTAL HEALTH CODE, 1974 PA 258, MCL 03925'97 3 1 330.1205, who has been employed for not less than 25 years, or 2 who is 60 years of age or older and has been employed for not 3 less than 5 years, in monthly payments not to exceed 2.5% of the 4 employee's highest average monthly compensation or earnings 5 received from the county,orcounty road fund, OR A COMMUNITY 6 MENTAL HEALTH AUTHORITY FUND for 5 years of service times the 7 total number of years of service of the employee, including a 8 fraction of a year, not to exceed 3/4 of the average final com- 9 pensation of the employee. A plan may also pay early retirement 10 benefits at 55 years of age or older to the extent of actuarially 11 equivalent benefits not increasing the costs of the plan. Except 12 as provided in subsection (28), endowment policies, retirement 13 benefits, pensions, or annuity retirement benefits in excess of 14 the amounts stipulated in this subdivision may be provided for by 15 a plan of employee participation to cover the cost of the 16 excess. If the employment or the pension or retirement benefits 17 of an employee who participated in the cost of pension or retire- 18 ment benefits are terminated before the employee receives pension 19 or retirement benefits equal to the total amount of the 20 employee's participation, the balance of the total participation 21 shall be refunded to the employee at the time of termination, if 22 living, or if deceased, to the employee's heir, estate, legal 23 representative, or designated beneficiary as provided in the plan 24 adopted and established by the county board of commissioners. If 25 a terminated employee is subsequently rehired by the county, the 26 employee may repay the amount of participation refunded to the 27 employee upon the employee's termination, together with compound 03925'97 4 1 interest from the date of refund to the dates of repayment at the 2 rates provided in the plan. As conditions for repayment, the 3 plan may require return to employment for a period not to exceed 4 3 years and may require that repayment be completed within a 5 period of not less than 1 year following return to employment. A 6 plan adopted for the payment of retirement benefits or a pension 7 shall grant benefits to an employee eligible for pension or 8 retirement benefits according to a uniform scale for all persons 9 in the same general class or classification. An employee shall 10 not be denied benefits by termination of his or her employment 11 after the employee becomes eligible for benefits under the plan 12 and this section. An endowment policy or annuity purchased pur- 13 suant to this section shall be purchased from an insurer autho- 14 rized to write endowment policies or annuities in this state. 15 (2) In a plan adopted under this section, at least 60% of 16 the total pension or retirement benefit granted to an employee 17 from county funds shall consist of a percentage not to exceed 18 2.5% of the employee's average final compensation times the 19 employee's years of service and shall be granted to each employee 20 eligible for retirement under the plan uniformly and without 21 restriction or limitation other than those prescribed in this 22 section. As used in this section: 23 (a) "Average final compensation" means the annual average of 24 the highest actual compensation received by a county employee, 25 other than a county employee who is a judge of a municipal court 26 of record subject to subsection (21) or a judge subject to 27 subsection (24), during a period of 5 consecutive years of 03925'97 5 1 service contained within the employee's 10 years of service 2 immediately before the employee's retirement or a period of 5 3 years of service as specified in the plan. In a county that 4 adopts a plan for granting longevity pay, the county board of 5 commissioners may exclude this longevity pay from average final 6 compensation for the purpose of computing the rate of employee 7 contribution and the amount of benefits payable to an employee 8 upon retirement. 9 (b) "Longevity pay" means increments of compensation payable 10 at annual or semiannual intervals and based upon years of service 11 to the county, exclusive of compensation provided for a given 12 class of positions. 13 (3) A circuit court stenographer is eligible for membership 14 in, and the benefits of, a pension or retirement benefit under a 15 plan established pursuant to this section, or a social security 16 plan established by the county or 1 of the counties that pays a 17 portion of the compensation of a circuit court stenographer. 18 (4) If the employment of a county employee eligible to 19 receive a pension or retirement benefit under a plan established 20 pursuant to this section is terminated after the employee has 21 completed 8 or more years of service in county employment, the 22 employee shall receive the amount of pension or retirement bene- 23 fit to which the employee's service would have entitled the 24 employee under the plan established, if the employee waives the 25 employee's right to a refund of the employee's total participa- 26 tion upon the termination of employment. The payment of pension 27 or retirement benefits shall begin, as provided in the plan, 03925'97 6 1 after the employee would have become eligible for retirement 2 under the plan had the employee's employment not been terminated, 3 but not later than 90 days after the employee becomes 65 years of 4 age. The payment of pension or retirement benefits shall not 5 begin until the employee has applied for pension or retirement 6 benefits in the manner prescribed in the plan established. 7 (5) A plan established under this section may provide for 8 pension or retirement benefits for a county employee who becomes 9 totally disabled for work in the county service from any cause, 10 after not less than 10 years of county employment, to the extent 11 of the limitations provided in this section. A plan may also 12 provide for pension or retirement benefits to the extent of the 13 limitations provided in this section or $400.00 per month, which- 14 ever is the greater sum, for an employee who becomes totally dis- 15 abled for work in the county service from causes that are the 16 direct and proximate result of county employment, to continue for 17 the duration of the disability or until the employee becomes eli- 18 gible for retirement pursuant to other provisions of the plan 19 authorized by this section. A plan may also provide for pension 20 or retirement benefits, to the extent of the limitations provided 21 in this section, for the actual dependents of a county employee 22 who dies while still employed by the county after not less than 23 10 years of county employment, or who dies after leaving county 24 employment with not less than the number of years of service 25 required to vest in the plan but before becoming eligible to 26 receive a pension or retirement benefit. A plan may also provide 27 for pension or retirement benefits to the extent of the 03925'97 7 1 limitations provided in this section or $400.00 per month, 2 whichever is greater, for the actual dependents of a deceased 3 county employee whose death is the direct and proximate result of 4 county employment. The plan may provide that the period from the 5 end of the deceased or disabled employee's period of service to 6 the date that employee would have become eligible for retirement 7 be used as service for the sole purpose of computing the amount 8 of disability or death pension. 9 (6) As used in this section, "county employee" includes a 10 bailiff of the district court in the thirty-sixth district who 11 serves pursuant to section 8322 of the revised judicature act of 12 1961,Act No. 236 of the Public Acts of 1961, being section13600.8322 of the Michigan Compiled Laws1961 PA 236, MCL 14 600.8322, and a person who receives more than 50% of all compen- 15 sation for personal services, rendered to governmental units, 16 from a county fund,orcounty road fund, OR A COMMUNITY MENTAL 17 HEALTH AUTHORITY FUND, except a person, other than a bailiff of 18 the district court in the thirty-sixth district, engaged for spe- 19 cial services on a contract or fee basis. Until December 31, 20 1979, a plan adopted under this section may include as a county 21 employee a person on leave of absence from county employment who 22 is not a member of another retirement system except as a retirant 23 and who pays or arranges payment of contributions equal to the 24 contributions that would have been required to be paid under the 25 plan by both the county and the employee, based upon the compen- 26 sation the employee would have received from the county, if the 27 employee had not taken a leave of absence or a person who 03925'97 8 1 complies with the requirements of such a provision approved for 2 inclusion in a plan by the county board of commissioners before 3 January 1, 1976, who shall be considered to be a county employee 4 during the period of compliance. A plan adopted under this sec- 5 tion may exclude a person who is employed on a temporary basis 6 and a person employed in a position normally requiring less than 7 1,000 hours, or some lesser specified number of hours, work per 8 year. A bailiff serving in the district court in the 9 thirty-sixth district is eligible to receive benefits under this 10 section if a plan has been established by law by which the cost 11 of benefits is payable from sources including charges on all 12 legal instruments in which the service of process by a bailiff is 13 required and earmarked by law for benefits, and contributions 14 made by the city of Detroit and each bailiff pursuant to section 15 8322(6) ofAct No. 236 of the Public Acts of 1961THE REVISED 16 JUDICATURE ACT OF 1961, 1961 PA 236, MCL 600.8322. The plan 17 shall include provisions by which a bailiff or former bailiff who 18 served as bailiff as of January 1, 1967, may retire after 25 19 years of service regardless of age, with maximum benefits to be 20 computed as follows: starting as of January 1, 1969, the average 21 of any 5 years of earnings of the previous 10 years served in 22 succession before retirement multiplied by 1.9% times the years 23 of service; starting as of June 1, 1975, the average of any 5 24 years of earnings multiplied by 2% times the years of service. 25 As used in this subsection, "earnings" means the salary and fees, 26 other than mileage, received by a bailiff pursuant to section 27 8322(5) ofAct No. 236 of the Public Acts of 1961THE REVISED 03925'97 9 1 JUDICATURE ACT OF 1961, 1961 PA 236, MCL 600.8322. The plan 2 shall include provisions by which health, accident, and hospital- 3 ization insurance premiums may be paid out of the earnings of 4 this fund. These payments shall be made at the discretion of the 5 pension board of trustees. A county that has a retirement fund 6 for bailiffs under this section shall annually review the retire- 7 ment fund and shall ensure that the fund is maintained in an 8 actuarially sound condition. Copies of the actuarial reports 9 shall be provided to the employer designated under section 10 8274(2) or (3) ofAct No. 236 of the Public Acts of 1961, being11section 600.8274 of the Michigan Compiled LawsTHE REVISED JUDI- 12 CATURE ACT OF 1961, 1961 PA 236, MCL 600.8274, and to the state 13 court administrator. 14 (7) An employee while receiving a pension or retirement ben- 15 efit because of disability, pursuant to this section, may be con- 16 sidered as employed in the county service for the purpose of 17 retirement under this section. 18 (8) A county employee who is included by law in another pen- 19 sion or retirement system by reason of the compensation the 20 employee receives from the county may be excluded from a plan 21 established under this section or included only to the extent of 22 the difference between benefits granted under this section and 23 the other pension or retirement system. 24 (9) The county board of commissioners, upon the request of a 25 county employee, by not less than a 3/5 vote may credit that 26 county employee with the amount of government service resulting 27 from employment with the United States government, except 03925'97 10 1 military service, employment with a state, or employment with any 2 of their political subdivisions under the following conditions: 3 (a) Employment by the county occurred within 15 years fol- 4 lowing the county employee's separation from service of the last 5 unit of government by which the county employee was employed. 6 (b) Service rendered before the last break in service of 7 more than 15 years shall not be credited. 8 (c) Service that is recognized for the purpose of a deferred 9 retirement allowance under a retirement system or other 10 employer-funded retirement benefit plan, except for a retirement 11 benefit plan under the social security act, chapter 531, 49 12 Stat. 620, of the United States government, a state, or a politi- 13 cal subdivision of a state shall not be credited if the county 14 employee retired under a retirement system of the United States 15 government, a state, or any of their political subdivisions or 16 until the county employee irrevocably forfeits the right to the 17 deferred retirement allowance. 18 (d) The county employee deposits in the plan established 19 under this section an amount equal to the aggregate amount of 20 contributions the county employee would have made had the service 21 been acquired in the employ of the county, plus interest from the 22 dates the contributions would have been made to the date of 23 deposit, at rates determined by the county board of 24 commissioners. If records are insufficient or unavailable to 25 compute the exact amount of required deposit, the county board of 26 commissioners may estimate the amount. 03925'97 11 1 (e) The county employee has 8 or more years of credited 2 service in county employment, has legal vesting in the county 3 plan, and deposits in the county employees' retirement system an 4 amount equal to the aggregate amount of contributions the 5 employer would have made had the government service being cred- 6 ited under this section been acquired in the employ of the 7 county. 8 (10) A plan adopted under this section may provide for 9 annual or less frequent postretirement redetermination of a 10 pension. The redetermined amount of pension shall be not greater 11 than the amount of pension otherwise payable multiplied by the 12 sum of 100% and the percentage the county board of commissioners 13 determines appropriate for each full year, excluding a fraction 14 of a year, in the period from the effective date of payments of 15 the pension and the date as of which the redetermination is being 16 made. The redetermined amount shall not be less than the amount 17 of pension otherwise payable. A provision of this section that 18 limits the amount of a pension shall not apply to the operation 19 of this subsection redetermining the amount of a pension. As 20 used in this subsection, "the amount of pension otherwise 21 payable" means the amount of pension that would be payable with- 22 out regard to this subsection. The application of a provision 23 redetermining pension amounts may be restricted to pensions that 24 have an effective date of payment either before or after a speci- 25 fied date. 26 (11) The cost of pension or retirement benefits for a county 27 employee under this section may be paid from the same fund from 03925'97 12 1 which the employee receives compensation, and the county board of 2 commissioners may appropriate the necessary funds to carry out 3 the purposes of this section. If a county establishes a plan by 4 which the county pays pension or retirement benefits to an 5 employee pursuant to this section, the county, pursuant to provi- 6 sions for pension or retirement benefits that are incorporated in 7 the plan, shall establish and maintain reserves on an actuarial 8 basis in the manner provided in this subsection sufficient to 9 finance the pension and retirement and death benefit liabilities 10 under the plan and sufficient to pay the pension and retirement 11 and death benefits as they become due. A county that adopts a 12 retirement plan under this section and establishes reserves on an 13 actuarial basis shall maintain the reserves as provided in this 14 subsection. The reserves shall be determined by an actuarial 15 valuation and established and maintained by yearly appropriations 16 by the county and contributions by employees. The reserves shall 17 be established, maintained, and funded to cover the pension and 18 other benefits provided for in the plan in the same manner and 19 within the same limits as to time as is provided for Benefit 20 Program B in the municipal employees retirement system described 21 in former section 14 of the municipal employees retirement act of 22 1984,Act No. 427 of the Public Acts of 19841984 PA 427. 23 These reserves are trust funds and shall not be used for any 24 other purpose than the payment of pension, retirement, and other 25 benefits and refunds of employee contributions pursuant to the 26 plan established in a county. An employee's contributions shall 27 be kept and accumulated in a separate fund and used only for the 03925'97 13 1 payment of annuities and refunds to employees. This subsection 2 does not apply to a county that adopted a retirement plan under 3 this section and did not establish reserves on an actuarial basis 4 before October 11, 1947. 5 (12) A plan established by a county for the payment of pen- 6 sion and retirement benefits to an employee under this section 7 shall be approved as complying with this section by a county pen- 8 sion plan committee consisting of the attorney general, the state 9 treasurer, and the executive secretary of the state employees' 10 retirement system created by the state employees' retirement act, 11Act No. 240 of the Public Acts of 1943, being sections 38.1 to1238.49 of the Michigan Compiled Laws1943 PA 240, MCL 38.1 TO 13 38.69, before the plan becomes effective or operative in the 14 county. Each county retirement plan operating under this section 15 shall be approved by the committee as complying with this section 16 biennially. A financial statement for each county retirement 17 plan operating under this section shall be submitted annually to 18 the county pension plan committee by the county board, official, 19 or employee designated by the county board of commissioners. The 20 financial statement shall be in the form, contain the informa- 21 tion, and be submitted as the county pension plan committee 22 prescribes. The state treasurer shall audit the funds and 23 accounts of county retirement plans established under this sec- 24 tion in the same manner as the state treasurer audits other 25 county accounts and may audit and investigate county retirement 26 plan funds and accounts to the extent necessary to effectuate the 27 purposes of this section. This subsection does not apply to a 03925'97 14 1 county that adopted a retirement plan under this section and did 2 not establish reserves on an actuarial basis before October 11, 3 1947. 4 (13) If a county establishes a plan for the payment of pen- 5 sion and retirement benefits to its employees pursuant to this 6 section, the county board of commissioners may provide for a 7 board of trustees to administer the plan and for the manner of 8 election or appointment of the members of the board of trustees. 9 The county board of commissioners may grant authority to the 10 board of trustees to fully administer and operate the plan and to 11 deposit, invest, and reinvest the funds and reserves of the plan 12 within the limitations prescribed by the county board of commis- 13 sioners in the plan. The county board of commissioners may 14 authorize the investment of funds of a county retirement plan 15 established under this section in anything in which the funds of 16 the state employees' retirement system or the funds of the munic- 17 ipal employees retirement system may be invested, pursuant to 18Act No. 240 of the Public Acts of 1943THE STATE EMPLOYEES' 19 RETIREMENT ACT, 1943 PA 240, MCL 38.1 TO 38.69, andAct No. 42720of the Public Acts of 1984, being sections 38.1501 to 38.1555 of21the Michigan Compiled LawsTHE MUNICIPAL EMPLOYEES RETIREMENT 22 ACT OF 1984, 1984 PA 427, MCL 38.1501 TO 38.1555. A county 23 retirement plan established under this section may provide for 24 financing, funding, and the payment of benefits in the same 25 manner and to the same extent as is provided for inAct No. 24026of the Public Acts of 1943THE STATE EMPLOYEES' RETIREMENT ACT, 27 1943 PA 240, MCL 38.1 TO 38.69, andAct No. 427 of the Public03925'97 15 1Acts of 1984THE MUNICIPAL EMPLOYEES RETIREMENT ACT OF 1984, 2 1984 PA 427, MCL 38.1501 TO 38.1555, may provide for and require 3 contributions by county employees, and may permit additional 4 employee contributions on a voluntary basis. 5 (14) Upon the approval of the county board of commissioners, 6 a member who entered the armed service of the United States 7 before June 1, 1980 or who entered the armed service of the 8 United States on or after June 1, 1980 during a time of war or 9 emergency condition as described in section 1 ofAct No. 190 of10the Public Acts of 1965, being section 35.61 of the Michigan11Compiled Laws1965 PA 190, MCL 35.61, may elect to receive cred- 12 ited service for not more than 5 years of active military 13 service. Credit for military service shall be given upon request 14 and payment to the retirement system of an amount equal to 5% of 15 the member's full-time or equated full-time annual compensation 16 for the year in which payment is made multiplied by the number of 17 years, and fraction of a year, of credited service that the 18 member elects to purchase up to the maximum. Service shall not 19 be credited if the service is or would be credited under any 20 other federal, state, or local publicly supported retirement 21 system. Service shall not be credited under this subsection 22 until the member has the number of years of credited service 23 needed to vest under the plan. Only completed years and months 24 of armed service shall be credited under this subsection. 25 (15) A member who enters or entered any armed service of the 26 United States may purchase credited service for periods of 03925'97 16 1 continuous active duty lasting 30 days or more, subject to the 2 following conditions: 3 (a) The county board of commissioners authorizes the pur- 4 chase of credited service under this subsection by an affirmative 5 vote of a majority of the members of the county board of 6 commissioners. The county board of commissioners shall establish 7 a written policy to implement the provisions of this subsection 8 in order to provide uniform application of this subsection to all 9 members of the plan. 10 (b) The member has at least the number of years of credited 11 service needed to vest under the plan, not including any credited 12 service purchased under this subsection and subsection (14). 13 (c) The member pays the plan 5% of the member's annual com- 14 pensation multiplied by the period of credited service being 15 purchased. As used in this subdivision, "annual compensation" 16 means the aggregate amount of compensation paid the member during 17 the 4 most recent calendar quarters for each of which the member 18 was credited 3/12 of a year of credited service. 19 (d) Fractional months of armed service shall not be recog- 20 nized for the purposes of this subsection. 21 (e) Armed service credited a member under subsection (14) 22 shall not be the basis of credited service under this section. 23 (f) Armed service credited a member under this subsection 24 shall not exceed either 5 years or the difference between 5 years 25 and the armed service credited the member under subsection (14). 26 (g) Credited service shall not be granted for periods of 27 armed service that are or could be used for obtaining or 03925'97 17 1 increasing a benefit from another retirement system, EXCEPT FOR 2 SERVICE THAT IS OR WOULD BE CREDITED UNDER THE FEDERAL GOVERNMENT 3 FOR SERVICES IN THE RESERVE. 4 (16) As used in this subsection, "transitional public 5 employment program" means a public service employment program in 6 the area of environmental quality, health care, education, public 7 safety, crime prevention and control, prison rehabilitation, 8 transportation, recreation, maintenance of parks, streets, and 9 other public facilities, solid waste removal, pollution control, 10 housing and neighborhood improvements, rural development, conser- 11 vation, beautification, veterans' outreach, or any other area of 12 human betterment and community improvement as part of a program 13 of comprehensive manpower services authorized, undertaken, and 14 financed pursuant to the former comprehensive employment and 15 training act of 1973, Public Law 93-203. A person participating 16 in a transitional public employment program shall not be eligible 17 for membership in a retirement system or pension plan established 18 under this section. If the person later becomes a member of a 19 retirement system or pension plan established under this section 20 within 12 months after the date of termination as a participant 21 in a transitional public employment program, service credit shall 22 be given for employment in the transitional public employment 23 program for purposes of determining a retirement allowance upon 24 the payment by the person and the person's employer under the 25 transitional public employment program from funds provided under 26 the former comprehensive employment and training act of 1973, 27 Public Law 93-203, as funds permit, to the retirement system of 03925'97 18 1 the contributions, plus regular interest, the person and the 2 employer would have paid had the employment been rendered in a 3 position covered by this section. During the person's employment 4 in the transitional public employment program, the person's 5 employer shall provide an opportunity by payroll deduction for 6 the person to make his or her employee contribution to the appli- 7 cable pension system. To provide for the eventual payment of the 8 employer's contribution, the person's employer shall during this 9 same period place in reserve a reasonable but not necessarily an 10 actuarially determined amount equal to the contributions that the 11 employer would have paid to the retirement system for those 12 employees in the transitional public employment program as if 13 they were members under this section, but only for that number of 14 employees that the employer determined would transfer from the 15 transitional public employment program into positions covered by 16 this section. If the funds provided under the former comprehen- 17 sive employment and training act of 1973, Public Law 93-203, are 18 insufficient, the remainder of the employer contributions shall 19 be paid by the person's current employer. 20 (17) Subsection (16) does not exclude the participant in a 21 transitional public employment program from the accident, dis- 22 ability, or other benefits available to members of the retirement 23 system covered by this section. 24 (18) If a probate judge who is a member of a plan estab- 25 lished under this section contributes for 20 years or more, the 26 county board of commissioners may allow the probate judge to 27 cease further contributions. 03925'97 19 1 (19) An employee of the circuit court in the third judicial 2 circuit, the common pleas court of the city of Detroit, or the 3 recorder's court of the city of Detroit who became an employee of 4 the state judicial council on September 1, 1981, and who was 44 5 years of age or older as of that date, and who will have accumu- 6 lated 25 or more years of service credit by September 1, 1987, 7 shall continue to be eligible for membership in, and the benefits 8 of, a pension or retirement benefit plan established pursuant to 9 this section in the same manner as the employee was eligible 10 before September 1, 1981. A person who was an employee of the 11 circuit court in the third judicial circuit, the common pleas 12 court of the city of Detroit, or the recorder's court of the city 13 of Detroit on August 31, 1981, who last entered county employment 14 before November 2, 1956, who became an employee of the state 15 judicial council on September 1, 1981, and who accumulated not 16 less than 24 years of service credit by August 31, 1981, shall 17 continue to be eligible for membership in, and the benefits of, a 18 pension or retirement benefit plan established pursuant to this 19 section in the same manner as the employee was eligible before 20 September 1, 1981. An election to continue to be a member of a 21 pension or retirement benefit plan established pursuant to this 22 section as authorized by section 594(2) of the revised judicature 23 act of 1961,Act No. 236 of the Public Acts of 1961, being sec-24tion 600.594 of the Michigan Compiled Laws1961 PA 236, MCL 25 600.594, as that section read on February 8, 1985, or former sec- 26 tion 36(2) ofAct No. 369 of the Public Acts of 19191919 PA 27 369, is not effective unless the employee has made the election 03925'97 20 1 in the manner prescribed by those sections and has made the 2 payments required by those sections. 3 (20) A plan adopted under this section may provide that an 4 employee of the circuit court in the third judicial circuit, the 5 common pleas court of the city of Detroit, or the recorder's 6 court of the city of Detroit who is a member of the Wayne county 7 employees' retirement system on August 31, 1981, who becomes an 8 employee of the state judicial council and a member of the state 9 employees' retirement system on September 1, 1981, receive a ben- 10 efit based on the annual average of the highest actual compensa- 11 tion received by the employee during a period of 5 years of 12 county or state service. 13 (21) Beginning September 1, 1981, for determining the 14 retirement benefit for a county employee who is a judge of a 15 municipal court of record pursuant to subsection (2), "average 16 final compensation" means the annual average of the highest 17 actual compensation received by the judge as additional salary 18 pursuant to former section 13(2) ofAct No. 369 of the Public19Acts of 19191919 PA 369, or section 9932(3) ofAct No. 236 of20the Public Acts of 1961, being section 600.9932 of the Michigan21Compiled LawsTHE REVISED JUDICATURE ACT OF 1961, 1961 PA 236, 22 MCL 600.9932, during a period of 5 years of service as specified 23 in the plan. This subsection shall not be construed to diminish 24 or impair an accrued financial benefit. 25 (22) Beginning September 1, 1981, for each county employee 26 who is a judge of a municipal court of record, or of the circuit 27 or district court, the sum of the average final compensation 03925'97 21 1 determined for that county employee pursuant to this section and 2 the final salary determined for that county employee as a member 3 of the state of Michigan judges' retirement system created by 4 formerAct No. 198 of the Public Acts of 19511951 PA 198, or 5 as a member of the Michigan judges retirement system created by 6 the judges retirement act of 1992,Act No. 234 of the Public7Acts of 1992, being sections 38.2101 to 38.2608 of the Michigan8Compiled Laws1992 PA 234, MCL 38.2101 TO 38.2670, shall not 9 exceed the employee's total annual judicial salary payable from 10 all sources at the time of his or her retirement. This subsec- 11 tion shall not be construed to diminish or impair an accrued 12 financial benefit. 13 (23) Beginning September 1, 1981, for each county employee 14 who is a judge of the probate court, the sum of the average final 15 compensation calculated for that employee pursuant to this sec- 16 tion and the final salary calculated for that employee as a 17 member of the state of Michigan probate judges retirement system 18 created by formerAct No. 165 of the Public Acts of 19541954 19 PA 165 or as a member of the Michigan judges retirement system 20 created byAct No. 234 of the Public Acts of 1992THE JUDGES 21 RETIREMENT ACT OF 1992, 1992 PA 234, MCL 38.2101 TO 38.2670, 22 shall not exceed the employee's total annual judicial salary pay- 23 able from all sources at the time of his or her retirement. This 24 subsection shall not be construed to diminish or impair an 25 accrued financial benefit. 26 (24) Beginning September 1, 1981, for determining a 27 retirement benefit pursuant to subsection (2) for a county 03925'97 22 1 employee who is a judge who receives an annuity pursuant to 2 section 14(5) of formerAct No. 198 of the Public Acts of 19513 1951 PA 198 or pursuant to section 503(2)(c) ofAct No. 234 of4the Public Acts of 1992, being section 38.2503 of the Michigan5Compiled LawsTHE JUDGES RETIREMENT ACT OF 1992, 1992 PA 234, 6 MCL 38.2503, "average final compensation" means the difference 7 between the judge's total annual salary payable from all sources 8 on August 31, 1981, and the judge's state base salary payable on 9 August 31, 1981. This subsection shall not be construed to 10 diminish or impair an accrued financial benefit. 11 (25) Beginning January 1, 1983, the sum of the final salary 12 determined for each county employee who is a judge of the probate 13 court used as the basis for determining the judge's retirement 14 allowance as a member of a retirement system established pursuant 15 to this section and the salary or compensation figure used as the 16 basis for determining the judge's retirement allowance as a 17 member of the state of Michigan judges' retirement system created 18 by formerAct No. 198 of the Public Acts of 19511951 PA 198 or 19 as a member of the Michigan judges retirement system created by 20Act No. 234 of the Public Acts of 1992THE JUDGES RETIREMENT 21 ACT OF 1992, 1992 PA 234, MCL 38.2101 TO 38.2670, shall not 22 exceed the judge's total annual salary payable from all sources 23 at the time of his or her retirement. This subsection shall not 24 be construed to diminish or impair an accrued financial benefit. 25 (26) The county board of commissioners, upon the request of 26 a county employee, by not less than a 3/5 vote may credit that 27 county employee with the amount of membership service that the 03925'97 23 1 county employee was previously credited with by the retirement 2 system established under this section under the following 3 conditions: 4 (a) The membership service previously credited to the county 5 employee was service rendered for the same county. 6 (b) Service that is recognized for the purpose of a deferred 7 retirement allowance under a retirement system or other 8 employer-funded retirement benefit plan, except for a retirement 9 benefit plan under the social security act, chapter 531, 49 10 Stat. 620, of the United States government, a state, or a politi- 11 cal subdivision of a state shall not be credited if the county 12 employee retired under a retirement system of the United States 13 government, a state, or any of their political subdivisions or 14 until the county employee irrevocably forfeits the right to the 15 deferred retirement allowance. 16 (c) The county employee deposits in the plan established 17 under this section an amount equal to the aggregate amount of 18 contributions the county employee made at the time of the previ- 19 ous membership service plus interest from the date of withdrawal 20 of the accumulated contributions to the date of deposit, at rates 21 determined by the county board of commissioners. If records are 22 insufficient or unavailable to compute the exact amount of 23 required deposit, the county board of commissioners may estimate 24 the amount. 25 (d) The county employee deposits in the county employees' 26 retirement system an amount equal to the aggregate amount of 27 contributions the employer made at the time of the previous 03925'97 24 1 membership service plus interest from the date of separation to 2 the date of deposit, at rates determined by the county board of 3 commissioners. 4 (27) A person participating in a program described in this 5 subsection is not eligible for membership in a retirement system 6 or pension plan established under this section. In addition, 7 that person shall not receive service credit for the employment 8 described in this subsection even though the person subsequently 9 becomes or has been a member of the retirement system. This sub- 10 section applies to all of the following: 11 (a) A person, not regularly employed by the county, who is 12 employed by the county through participation in a program estab- 13 lished pursuant to the job training partnership act, Public Law 14 97-300, 96 Stat. 1322. 15 (b) A person, not regularly employed by the county, who is 16 employed by the county through participation in a program estab- 17 lished pursuant to the Michigan opportunity and skills training 18 program, first established under sections 12 to 23 ofAct19No. 259 of the Public Acts of 19831983 PA 259. 20 (c) A person, not regularly employed by the county, who is 21 employed by the county through participation in a program estab- 22 lished pursuant to the Michigan community service corps program, 23 first established under sections 25 to 35 ofAct No. 259 of the24Public Acts of 19831983 PA 259 and sections 148 to 160 ofAct25No. 246 of the Public Acts of 19841984 PA 246. 03925'97 25 1 (d) A person, not regularly employed by the county, who is 2 hired by the county to administer a program described in 3 subdivision (a), (b), or (c). 4 (28) If a county enters into a collective bargaining agree- 5 ment pursuant toAct No. 336 of the Public Acts of 1947, being6sections 423.201 to 423.217 of the Michigan Compiled Laws1947 7 PA 336, MCL 423.201 TO 423.217, that provides for retirement ben- 8 efits that are in excess of the retirement benefits otherwise 9 authorized to be provided under this section for employees of the 10 county who are covered by a plan under this section, then the 11 county board of commissioners may amend or adopt a plan under 12 this section to provide those benefits to employees who are mem- 13 bers of the bargaining unit covered by the agreement, and may, 14 after December 31, 1987, amend or adopt a plan under this section 15 to provide those benefits to other employees of the county. 16 (29) One of the following conditions applies to a retirant 17 who is receiving a pension or retirement benefit from a plan 18 under this section if the retirant becomes employed by a county 19 that has established a plan under this section: 20 (a) Payment of the pension or retirement benefit to the 21 retirant shall be suspended if the retirant is employed by the 22 county from which the retirant retired and the retirant does not 23 meet the requirements of subdivision (b) or (d). Suspension of 24 the payment of the pension or retirement benefit shall become 25 effective the first day of the calendar month that follows the 26 sixtieth day after the retirant is employed by the county. 27 Payment of the pension or retirement benefit shall resume on the 03925'97 26 1 first day of the calendar month that follows termination of the 2 employment. Payment of the pension or retirement benefit shall 3 be resumed without change in amount or conditions by reason of 4 the employment. The retirant shall not be a member of the plan 5 during the period of employment. 6 (b) Payment of the pension or retirement benefit to the 7 retirant shall continue without change in amount or conditions by 8 reason of employment by the county from which the retirant 9 retired if all of the following requirements are met: 10 (i) The retirant meets 1 of the following requirements: 11 (A) For any retirant, is employed by the county for not more 12 than 1,000 hours in any 12-month period. 13 (B) For a retirant who was not an elected or appointed 14 county official at retirement, is elected or appointed as a 15 county official for a term of office that begins after the 16 retirant's retirement allowance effective date. 17 (C) For a retirant who was an elected or appointed county 18 official at retirement, is elected or appointed as a county offi- 19 cial to a different office from which the retirant retired for a 20 term of office that begins after the retirant's retirement allow- 21 ance effective date. 22 (D) For a retirant who was an elected or appointed county 23 official at retirement, is elected or appointed as a county offi- 24 cial to the same office from which the retirant retired for a 25 term of office that begins 2 years or more after the retirant's 26 retirement allowance effective date. 03925'97 27 1 (ii) The retirant is not eligible for any benefits from the 2 county other than those required by law or otherwise provided to 3 the retirant by virtue of his or her being a retirant. 4 (iii) The retirant is not a member of the plan during the 5 period of reemployment, does not receive additional retirement 6 credits during the period of reemployment, and does not receive 7 any increase in pension or retirement benefits because of the 8 employment under this subdivision. 9 (c) Payment of the pension or retirement benefit to the 10 retirant shall continue without change in amount or conditions by 11 reason of the employment if the retirant becomes employed by a 12 county other than the county from which the retirant retired. 13 For the purposes of membership and potential benefit entitlement 14 under the plan of the other county, the retirant shall be consid- 15 ered in the same manner as an individual with no previous record 16 of employment by that county. 17 (d) Payment of the pension or retirement benefit to the 18 retirant shall continue without change in amount or conditions by 19 reason of employment by the county from which the retirant 20 retired if the retirant was an employee of the state judicial 21 council on September 30, 1996, and becomes a county-paid employee 22 of the recorder's court of the city of Detroit or the third judi- 23 cial circuit of the circuit court on October 1, 1996. 24 (30) A county may increase the percentage of the highest 25 average monthly compensation or earnings that was used to calcu- 26 late the pension or retirement benefit under subsection (1)(b) of 27 a person receiving a pension or retirement benefit under this 03925'97 28 1 section on the date the county increases the percentage of 2 compensation or earnings. The county shall recalculate the pen- 3 sion or retirement benefit using the increased percentage of com- 4 pensation or earnings. The person receiving the pension or 5 retirement benefit is eligible to receive an adjusted pension or 6 retirement benefit based upon the recalculation effective the 7 first day of the month following the date the county increases 8 the percentage of compensation or earnings under this 9 subsection. 10 (31) The payment of pension or retirement benefits under a 11 plan established pursuant to this section is subject to an eligi- 12 ble domestic relations order under the eligible domestic rela- 13 tions order act,Act No. 46 of the Public Acts of 1991, being14sections 38.1701 to 38.1711 of the Michigan Compiled Laws1991 15 PA 46, MCL 38.1701 TO 38.1711. 16 (32) If a county retirement plan established under this sec- 17 tion provides an optional form of payment of a retirement allow- 18 ance and if a retirant receiving a reduced retirement allowance 19 under that plan is divorced from the spouse who had been named 20 the retirant's survivor beneficiary, the election of a reduced 21 retirement allowance form of payment shall be considered void by 22 the retirement system if the judgment of divorce or award or 23 order of the court, or an amended judgment of divorce or award or 24 order of the court dated after July 18, 1991 provides that the 25 election of a reduced retirement allowance form of payment is to 26 be considered void by the retirement system and the retirant 27 provides a certified copy of the judgment of divorce or award or 03925'97 29 1 order of the court, or an amended judgment of divorce or award or 2 order of the court, to the retirement system. If the election of 3 a reduced retirement allowance form of payment is considered void 4 by the retirement system under this subsection, the retirant's 5 retirement allowance shall revert to a straight life retirement 6 allowance, including postretirement adjustments, if any, subject 7 to an award or order of the court. The retirement allowance 8 shall revert to a straight life retirement allowance under this 9 subsection effective the first of the month after the date the 10 retirement system receives a certified copy of the judgment of 11 divorce or award or order of the court. This subsection does not 12 supersede a judgment of divorce or award or order of the court in 13 effect on July 18, 1991. This subsection does not require the 14 retirement system to distribute or pay retirement assets on 15 behalf of a retirant in an amount that exceeds the actuarially 16 determined amount that would otherwise become payable if a judg- 17 ment of divorce had not been rendered. 18 (33) A county board of commissioners of a county having a 19 population of more than 400,000 but less than 800,000, which 20 county has an employee credit union organized underAct No. 28521of the Public Acts of 1925, being sections 490.1 to 490.31 of the22Michigan Compiled Laws1925 PA 285, MCL 490.1 TO 490.31, may 23 include as a member of a plan under this section a past or 24 present employee of the credit union, if that past or present 25 employee has 5 or more years of service credit with that credit 26 union on or before June 30, 1990. 03925'97 30 1 (34) The county board of commissioners shall establish a 2 written policy to implement the provisions of this section in 3 order to provide uniform application of this section to all mem- 4 bers of the plan. 03925'97 Final page. KKR