HOUSE BILL No. 4082


     January 28, 1999, Introduced by Rep. Law and referred to the Committee on Senior Health, Security and Retirement.


        A bill to amend 1980 PA 300, entitled

   "The public school employees retirement act of 1979,"

   by amending section 61 (MCL 38.1361), as amended by 1989 PA 194.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 61.  (1)  If  EXCEPT AS OTHERWISE PROVIDED IN THIS SEC-

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      TION, IF a retirant is receiving a retirement allowance other

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      than a disability allowance payable under this act or under

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      former  Act No. 136 of the Public Acts of 1945  1945 PA 136, on

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      account of either age or years of personal service performed, or

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      both, and becomes employed by a reporting unit, the following

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      shall take place:

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           (a) The retirant shall not be entitled to a new final aver-

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      age compensation or additional service credit under this

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      retirement system unless additional service is performed

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      equivalent to 5 or more years of service credit or, if the


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      retirant has contributed to the member investment plan, the

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      equivalent of 3 or more years of service credit.  The retirant

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      may elect to have the retirement allowance recomputed based on

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      the added credit or the final average compensation resulting from

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      the added service, or both.  A retirement allowance shall not be

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      recomputed until the retirant pays into the retirement system an

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      amount equal to the retirant's new final average compensation

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      multiplied by the percentage determined under section 41(2) for

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      normal cost and unfunded actuarial accrued liabilities, not

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      including the percentage required for the funding of health bene-

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      fits, multiplied by the total service credit in the period in

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      which the retirant's additional service was performed.

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           (b) The retirant's retirement allowance shall be reduced by

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      the lesser of the amount that the earnings in a calendar year

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      exceed the amount permitted without a reduction of benefits under

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      the social security act, chapter 531, 49  stat.  STAT. 620, or

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       1/3  1/2 of the retirant's final average compensation.  For pur-

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      poses of computing allowable earnings under this subdivision, the

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      final average compensation shall be increased by 5% for each full

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      year of retirement.

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           (2)  (c)  The retirement system may offset retirement bene-

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      fits payable under this act against amounts owed to the retire-

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      ment system by a retirant or retirement allowance beneficiary.

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           (3) SUBSECTION (1) DOES NOT APPLY TO A RETIRANT IF ALL OF

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      THE FOLLOWING CIRCUMSTANCES EXIST:







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           (A) THE RETIRANT IS EMPLOYED BY A UNIVERSITY THAT IS

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      CONSIDERED A REPORTING UNIT FOR THE LIMITED PURPOSE DESCRIBED IN

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      SECTION 7(3).

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           (B) THE RETIRANT IS NOT ELIGIBLE TO USE ANY SERVICE OR COM-

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      PENSATION ATTRIBUTABLE TO THE EMPLOYMENT DESCRIBED IN SUBDIVISION

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      (A) FOR A RECOMPUTATION OF HIS OR HER RETIREMENT ALLOWANCE.

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           (4) SUBSECTION (1) DOES NOT APPLY TO A RETIRANT IF ALL OF

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      THE FOLLOWING CIRCUMSTANCES EXIST:

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           (A) THE RETIRANT IS EMPLOYED BY A REPORTING UNIT THAT HAS AN

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      APPROVED EMERGENCY SITUATION, NOT INCLUDING A SITUATION CAUSED BY

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      A LABOR DISPUTE, THAT NECESSITATES THE HIRING OF A RETIRANT TO

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      PREVENT DEPRIVING STUDENTS OF AN EDUCATION.  THE CHIEF EXECUTIVE

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      OFFICER OF THE REPORTING UNIT SHALL NOTIFY THE DEPARTMENT OF EDU-

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      CATION IN WRITING THAT AN EMERGENCY SITUATION EXISTS.  THE CHIEF

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      EXECUTIVE OFFICER OF THE REPORTING UNIT SHALL INCLUDE WITH THE

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      WRITTEN NOTIFICATION DOCUMENTATION SUPPORTING THE REPORTING

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      UNIT'S INABILITY TO EMPLOY QUALIFIED PERSONNEL TO FILL A

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      VACANCY.  SUPPORTING DOCUMENTATION INCLUDES EVIDENCE OF THE

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      REPORTING UNIT'S UNSUCCESSFUL EFFORTS TO RECRUIT QUALIFIED PER-

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      SONNEL THROUGH MEANS SUCH AS ADVERTISING THE OPEN POSITION IN

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      APPROPRIATE MASS MEDIA, LISTING THE OPEN POSITION WITH COLLEGE

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      AND UNIVERSITY PLACEMENT OFFICES OR OTHER EMPLOYMENT AGENCIES,

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      AND SENDING PUBLIC NOTIFICATION OF THE OPEN POSITION TO APPROPRI-

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      ATE AGENCIES, EMPLOYEE UNIONS, OR PROFESSIONAL ASSOCIATIONS.

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      UPON RECEIPT OF THE NOTIFICATION AND DOCUMENTATION UNDER THIS

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      SUBDIVISION, THE DEPARTMENT OF EDUCATION SHALL NOTIFY THE CHIEF

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      EXECUTIVE OFFICER AND THE RETIREMENT SYSTEM OF HIS OR HER



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      APPROVAL OR DISAPPROVAL OF THE EMERGENCY SITUATION.  IF

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      DISAPPROVED BY THE DEPARTMENT OF EDUCATION, THIS SUBSECTION DOES

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      NOT APPLY.

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           (B) THE RETIRANT IS EMPLOYED UNDER AN EMERGENCY SITUATION

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      DESCRIBED IN SUBDIVISION (A) FOR A PERIOD NOT TO EXCEED 1 YEAR.

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           (C) THE RETIRANT IS NOT ELIGIBLE TO USE ANY SERVICE OR COM-

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      PENSATION ATTRIBUTABLE TO THE EMPLOYMENT DESCRIBED IN SUBDIVISION

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      (A) FOR A RECOMPUTATION OF HIS OR HER RETIREMENT ALLOWANCE.








































   00226'99          Final page.                            KKR