HOUSE BILL No. 4391


     March 1, 2001, Introduced by Reps. Vander Veen, Voorhees and Birkholz 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 46 (MCL 38.1346), as amended by 1991 PA 47.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 46.  (1) Except as otherwise provided in this section,

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      a retirement allowance, an optional benefit, or any other benefit

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      accrued or accruing to a person under this act, the reserves cre-

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      ated by this act, and the money, investments, or income of those

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      reserves are exempt from state, county, municipal, or other local

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      tax and are not subject to execution, garnishment, attachment,

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      the operation of bankruptcy or insolvency laws, or other process

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      of law.  The right to a retirement allowance, an optional bene-

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      fit, or any other benefit accrued or accruing to a person under

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      this act is unassignable, except as specifically provided in this

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      act.


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           (2) The retirement system may offset retirement benefits or

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      refunds payable under this act against amounts owed to the

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      retirement system by a member, retirant, retirement allowance

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      beneficiary, or refund beneficiary.

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           (3) If the retirement system is required by the federal gov-

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      ernment pursuant to a court order to transmit a part of a

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      member's contributions standing to the member's credit in the

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      reserve for employee contributions to a federal agency, the serv-

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      ice credit that is covered by the payment shall be forfeited in

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      the same manner as if the employee had requested and been paid a

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      refund of the member's most recent contributions.

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           (4) A retirement allowance, an optional benefit, accumulated

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      contributions, or any other benefit to a member, a deferred

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      member, a retirement allowance beneficiary, or a retirant under

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      this act is subject to award by a court court pursuant to section

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       88  18 of  chapter 84 of the Revised Statutes of 1846, being

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      section  1846 RS 84, MCL 552.18,  of the Michigan Compiled
   Laws,

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      and to any other order of a court pertaining to alimony or child

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      support.  However, this subsection does not permit or require a

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      benefit to be paid or to be provided that is not otherwise avail-

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      able under this act.

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           (5) If an award or order described in subsection (4)

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      requires the retirement system to withhold payment of a retire-

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      ment allowance, deferred retirement allowance, accumulated con-

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      tributions, or other benefit from the person to whom it is due or

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      requires the retirement system to pay or requires the person to

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      request that the retirement system pay a retirement allowance,



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      deferred retirement allowance, accumulated contributions, or

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      other benefit, for the purpose of meeting the person's obliga-

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      tions to a spouse, former spouse, or child, as provided in

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      subsection (4), the withholding or payment provisions of the

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      award or order are effective only against such amounts as they

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      become payable to the person otherwise entitled to receive the

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      retirement allowance unless otherwise provided in an eligible

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      domestic relations order under the eligible domestic relations

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      order act, 1991 PA 46, MCL 38.1701 TO 38.1711.  The limitation

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      contained in this subsection does not apply to the accumulated

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      contributions of a person who has terminated employment before

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      acquiring a vested member status.

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           (6) A retirement allowance or an optional benefit payable to

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      a member, deferred member, or retirant under this act is subject

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      to an eligible domestic relations order under the eligible domes-

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      tic relations order act, 1991 PA 46, MCL 38.1701 TO 38.1711.

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           (7) NOTWITHSTANDING SUBSECTION (5), A RETIRANT WHO DIVORCED

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      HIS OR HER SPOUSE AFTER HIS OR HER RETIREMENT DATE AND BEFORE THE

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      EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS SUBSECTION

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      SHALL PRESENT TO THE RETIREMENT SYSTEM AN ORDER OF THE COURT TO

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      PAY HIS OR HER DIVORCED SPOUSE A BENEFIT UNDER THIS ACT.  THE

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      RETIREMENT SYSTEM SHALL PAY THE DIVORCED SPOUSE THE BENEFIT AS

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      THE COURT DIRECTS.

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           Enacting section 1.  This amendatory act does not take

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      effect unless all of the following bills of the 91st Legislature

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      are enacted into law:





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           (a) Senate Bill No. _____ or House Bill No. 4388  (request

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      no. 00283'01 *).

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           (b) Senate Bill No. _____ or House Bill No. 4389  (request

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      no. 00284'01 *).

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           (c) Senate Bill No. _____ or House Bill No. 4390  (request

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      no. 00284'01 a *).












































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