HOUSE BILL No. 5730 February 21, 2002, Introduced by Reps. Williams, Richardville, Birkholz, Meyer, Vander Veen, Vander Roest and Lemmons and referred to the Committee on Senior Health, Security and 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 1998 PA 502. 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 dependent of an employee, either with or without cost 8 participation by the employee, and appropriate the necessary 9 funds for the insurance. For a county with 100 employees or 02687'01 MRM 2 1 more, self-insure for health, accident and hospitalization, and 2 group disability coverage for a county employee, retired employ- 3 ee, or an employee of an office, board, or department of the 4 county, including the board of county road commissioners, and a 5 dependent of an employee, either with or without cost participa- 6 tion by the employee, and appropriate the necessary funds. 7 (b) Adopt and establish a plan by which the county purchases 8 or participates in the cost of an endowment policy or retirement 9 annuity for a county employee or an employee of an office, board, 10 or department of the county, including the board of county road 11 commissioners, to provide monthly pension or retirement benefits 12 for each employee 60 years of age or older in an amount not to 13 exceed $150.00 per month or 2% of the average monthly earnings of 14 the employee for 5 years immediately before retirement times the 15 years of service of the employee, whichever is the lesser sum. 16 As an option, a county board of commissioners may adopt and 17 establish a plan by which the county pays pension or retirement 18 benefits to a county employee or an employee of an office, board, 19 or department of the county, including the board of county road 20 commissioners, who has been employed for not less than 25 years, 21 or who is 60 years of age or older and has been employed for not 22 less than 5 years, in monthly payments not to exceed 2.5% of the 23 employee's highest average monthly compensation or earnings 24 received from the county or county road fund for 5 years of serv- 25 ice times the total number of years of service of the employee, 26 including a fraction of a year, not to exceed 3/4 of the average 27 final compensation of the employee. A plan may also pay early 02687'01 3 1 retirement benefits at 55 years of age or older to the extent of 2 actuarially equivalent benefits not increasing the costs of the 3 plan. Except as provided in subsection(28)(27), endowment 4 policies, retirement benefits, pensions, or annuity retirement 5 benefits in excess of the amounts stipulated in this subdivision 6 may be provided for by a plan of employee participation to cover 7 the cost of the excess. If the employment or the pension or 8 retirement benefits of an employee who participated in the cost 9 of pension or retirement benefits are terminated before the 10 employee receives pension or retirement benefits equal to the 11 total amount of the employee's participation, the balance of the 12 total participation shall be refunded to the employee at the time 13 of termination, if living, or if deceased, to the employee's 14 heir, estate, legal representative, or designated beneficiary as 15 provided in the plan adopted and established by the county board 16 of commissioners. If a terminated employee is subsequently 17 rehired by the county, the employee may repay the amount of par- 18 ticipation refunded to the employee upon the employee's termina- 19 tion, together with compound interest from the date of refund to 20 the dates of repayment at the rates provided in the plan. As 21 conditions for repayment, the plan may require return to employ- 22 ment for a period not to exceed 3 years and may require that 23 repayment be completed within a period of not less than 1 year 24 following return to employment. A plan adopted for the payment 25 of retirement benefits or a pension shall grant benefits to an 26 employee eligible for pension or retirement benefits according to 27 a uniform scale for all persons in the same general class or 02687'01 4 1 classification. An employee shall not be denied benefits by 2 termination of his or her employment after the employee becomes 3 eligible for benefits under the plan and this section. An endow- 4 ment policy or annuity purchased pursuant to this section shall 5 be purchased from an insurer authorized to write endowment poli- 6 cies or annuities in this state. 7 (2) In a plan adopted under this section, at least 60% of 8 the total pension or retirement benefit granted to an employee 9 from county funds shall consist of a percentage not to exceed 10 2.5% of the employee's average final compensation times the 11 employee's years of service and shall be granted to each employee 12 eligible for retirement under the plan uniformly and without 13 restriction or limitation other than those prescribed in this 14 section. As used in this section: 15 (a) "Average final compensation" means the annual average of 16 the highest actual compensation received by a county employee, 17 other than a county employee who is a judge of a municipal court 18 of record subject to subsection(21)(20) or a judge subject to 19 subsection(24)(23), during a period of 5 consecutive years of 20 service contained within the employee's 10 years of service imme- 21 diately before the employee's retirement or a period of 5 years 22 of service as specified in the plan. In a county that adopts a 23 plan for granting longevity pay, the county board of commission- 24 ers may exclude this longevity pay from average final compensa- 25 tion for the purpose of computing the rate of employee contribu- 26 tion and the amount of benefits payable to an employee upon 27 retirement. 02687'01 5 1 (b) "Longevity pay" means increments of compensation payable 2 at annual or semiannual intervals and based upon years of service 3 to the county, exclusive of compensation provided for a given 4 class of positions. 5 (3) A circuit court stenographer is eligible for membership 6 in, and the benefits of, a pension or retirement benefit under a 7 plan established pursuant to this section, or a social security 8 plan established by the county or 1 of the counties that pays a 9 portion of the compensation of a circuit court stenographer. 10 (4) If the employment of a county employee eligible to 11 receive a pension or retirement benefit under a plan established 12 pursuant to this section is terminated after the employee has 13 completed 8 or more years of service in county employment, the 14 employee shall receive the amount of pension or retirement bene- 15 fit to which the employee's service would have entitled the 16 employee under the plan established, if the employee waives the 17 employee's right to a refund of the employee's total participa- 18 tion upon the termination of employment. The payment of pension 19 or retirement benefits shall begin, as provided in the plan, 20 after the employee would have become eligible for retirement 21 under the plan had the employee's employment not been terminated, 22 but not later than 90 days after the employee becomes 65 years of 23 age. The payment of pension or retirement benefits shall not 24 begin until the employee has applied for pension or retirement 25 benefits in the manner prescribed in the plan established. 26 (5) A plan established under this section may provide for 27 pension or retirement benefits for a county employee who becomes 02687'01 6 1 totally disabled for work in the county service from any cause, 2 after not less than 10 years of county employment, to the extent 3 of the limitations provided in this section. A plan may also 4 provide for pension or retirement benefits to the extent of the 5 limitations provided in this section or $400.00 per month, which- 6 ever is the greater sum, for an employee who becomes totally dis- 7 abled for work in the county service from causes that are the 8 direct and proximate result of county employment, to continue for 9 the duration of the disability or until the employee becomes eli- 10 gible for retirement pursuant to other provisions of the plan 11 authorized by this section. A plan may also provide for pension 12 or retirement benefits, to the extent of the limitations provided 13 in this section, for the actual dependents of a county employee 14 who dies while still employed by the county after not less than 15 10 years of county employment, or who dies after leaving county 16 employment with not less than the number of years of service 17 required to vest in the plan but before becoming eligible to 18 receive a pension or retirement benefit. A plan may also provide 19 for pension or retirement benefits to the extent of the limita- 20 tions provided in this section or $400.00 per month, whichever is 21 greater, for the actual dependents of a deceased county employee 22 whose death is the direct and proximate result of county 23 employment. The plan may provide that the period from the end of 24 the deceased or disabled employee's period of service to the date 25 that employee would have become eligible for retirement be used 26 as service for the sole purpose of computing the amount of 27 disability or death pension. 02687'01 7 1 (6) As used in this section, "county employee" includes a 2 bailiff of the district court in the thirty-sixth district who 3 serves pursuant to section 8322 of the revised judicature act of 4 1961, 1961 PA 236, MCL 600.8322, and a person who receives more 5 than 50% of all compensation for personal services, rendered to 6 governmental units, from a county fund or county road fund, 7 except a person, other than a bailiff of the district court in 8 the thirty-sixth district, engaged for special services on a con- 9 tract or fee basis. Until December 31, 1979, a plan adopted 10 under this section may include as a county employee a person on 11 leave of absence from county employment who is not a member of 12 another retirement system except as a retirant and who pays or 13 arranges payment of contributions equal to the contributions that 14 would have been required to be paid under the plan by both the 15 county and the employee, based upon the compensation the employee 16 would have received from the county, if the employee had not 17 taken a leave of absence or a person who complies with the 18 requirements of such a provision approved for inclusion in a plan 19 by the county board of commissioners before January 1, 1976, who 20 shall be considered to be a county employee during the period of 21 compliance. A plan adopted under this section may exclude a 22 person who is employed on a temporary basis and a person employed 23 in a position normally requiring less than 1,000 hours, or some 24 lesser specified number of hours, work per year. A bailiff serv- 25 ing in the district court in the thirty-sixth district is eligi- 26 ble to receive benefits under this section if a plan has been 27 established by law by which the cost of benefits is payable from 02687'01 8 1 sources including charges on all legal instruments in which the 2 service of process by a bailiff is required and earmarked by law 3 for benefits, and contributions made by the city of Detroit and 4 each bailiff pursuant to section 8322(6) of the revised judica- 5 ture act of 1961, 1961 PA 236, MCL 600.8322. The plan shall 6 include provisions by which a bailiff or former bailiff who 7 served as bailiff as of January 1, 1967, may retire after 25 8 years of service regardless of age, with maximum benefits to be 9 computed as follows: starting as of January 1, 1969, the average 10 of any 5 years of earnings of the previous 10 years served in 11 succession before retirement multiplied by 1.9% times the years 12 of service; starting as of June 1, 1975, the average of any 5 13 years of earnings multiplied by 2% times the years of service. 14 As used in this subsection, "earnings" means the salary and fees, 15 other than mileage, received by a bailiff pursuant to section 16 8322(5) of the revised judicature act of 1961, 1961 PA 236, 17 MCL 600.8322. The plan shall include provisions by which health, 18 accident, and hospitalization insurance premiums may be paid out 19 of the earnings of this fund. These payments shall be made at 20 the discretion of the pension board of trustees. A county that 21 has a retirement fund for bailiffs under this section shall annu- 22 ally review the retirement fund and shall ensure that the fund is 23 maintained in an actuarially sound condition. Copies of the 24 actuarial reports shall be provided to the employer designated 25 under section 8274(2) or (3) of the revised judicature act of 26 1961, 1961 PA 236, MCL 600.8274, and to the state court 27 administrator. 02687'01 9 1 (7) An employee while receiving a pension or retirement 2 benefit because of disability, pursuant to this section, may be 3 considered as employed in the county service for the purpose of 4 retirement under this section. 5 (8) A county employee who is included by law in another pen- 6 sion or retirement system by reason of the compensation the 7 employee receives from the county may be excluded from a plan 8 established under this section or included only to the extent of 9 the difference between benefits granted under this section and 10 the other pension or retirement system. 11 (9) The county board of commissioners, upon the request of a 12 county employee, by not less than a 3/5 vote may credit that 13 county employee with the amount of government service resulting 14 from employment with the United States government, except mili- 15 tary service, employment with a state, or employment with any of 16 their political subdivisions under the following conditions: 17 (a) Employment by the county occurred within 15 years fol- 18 lowing the county employee's separation from service of the last 19 unit of government by which the county employee was employed. 20 (b) Service rendered before the last break in service of 21 more than 15 years shall not be credited. 22 (c) Service that is recognized for the purpose of a deferred 23 retirement allowance under a retirement system or other 24 employer-funded retirement benefit plan, except for a retirement 25 benefit plan under the social security act, chapter 531, 49 26 Stat. 620, of the United States government, a state, or a 27 political subdivision of a state shall not be credited if the 02687'01 10 1 county employee retired under a retirement system of the United 2 States government, a state, or any of their political subdivi- 3 sions or until the county employee irrevocably forfeits the right 4 to the deferred retirement allowance. 5 (d) The county employee deposits in the plan established 6 under this section an amount equal to the aggregate amount of 7 contributions the county employee would have made had the service 8 been acquired in the employ of the county, plus interest from the 9 dates the contributions would have been made to the date of 10 deposit, at rates determined by the county board of 11 commissioners. If records are insufficient or unavailable to 12 compute the exact amount of required deposit, the county board of 13 commissioners may estimate the amount. 14 (e) The county employee has 8 or more years of credited 15 service in county employment, has legal vesting in the county 16 plan, and deposits in the county employees' retirement system an 17 amount equal to the aggregate amount of contributions the 18 employer would have made had the government service being cred- 19 ited under this section been acquired in the employ of the 20 county. 21 (10) A plan adopted under this section may provide for 22 annual or less frequent postretirement redetermination of a 23 pension. The redetermined amount of pension shall be not greater 24 than the amount of pension otherwise payable multiplied by the 25 sum of 100% and the percentage the county board of commissioners 26 determines appropriate for each full year, excluding a fraction 27 of a year, in the period from the effective date of payments of 02687'01 11 1 the pension and the date as of which the redetermination is being 2 made. The redetermined amount shall not be less than the amount 3 of pension otherwise payable. A provision of this section that 4 limits the amount of a pension shall not apply to the operation 5 of this subsection redetermining the amount of a pension. As 6 used in this subsection, "the amount of pension otherwise 7 payable" means the amount of pension that would be payable with- 8 out regard to this subsection. The application of a provision 9 redetermining pension amounts may be restricted to pensions that 10 have an effective date of payment either before or after a speci- 11 fied date. 12 (11) The cost of pension or retirement benefits for a county 13 employee under this section may be paid from the same fund from 14 which the employee receives compensation, and the county board of 15 commissioners may appropriate the necessary funds to carry out 16 the purposes of this section. If a county establishes a plan by 17 which the county pays pension or retirement benefits to an 18 employee pursuant to this section, the county, pursuant to provi- 19 sions for pension or retirement benefits that are incorporated in 20 the plan, shall establish and maintain reserves on an actuarial 21 basis in the manner provided in this subsection sufficient to 22 finance the pension and retirement and death benefit liabilities 23 under the plan and sufficient to pay the pension and retirement 24 and death benefits as they become due. A county that adopts a 25 retirement plan under this section and establishes reserves on an 26 actuarial basis shall maintain the reserves as provided in this 27 subsection. The reserves shall be determined by an actuarial 02687'01 12 1 valuation and established and maintained by yearly appropriations 2 by the county and contributions by employees. The reserves shall 3 be established, maintained, and funded to cover the pension and 4 other benefits provided for in the plan in the same manner and 5 within the same limits as to time as is provided for Benefit 6 Program B in the municipal employees retirement system described 7 in former section 14 of the municipal employees retirement act of 8 1984, 1984 PA 427. These reserves are trust funds and shall not 9 be used for any other purpose than the payment of pension, 10 retirement, and other benefits and refunds of employee contribu- 11 tions pursuant to the plan established in a county. An 12 employee's contributions shall be kept and accumulated in a sepa- 13 rate fund and used only for the payment of annuities and refunds 14 to employees. This subsection does not apply to a county that 15 adopted a retirement plan under this section and did not estab- 16 lish reserves on an actuarial basis before October 11, 1947. 17(12) A plan established by a county for the payment of pen-18sion and retirement benefits to an employee under this section19shall be approved as complying with this section by a county pen-20sion plan committee consisting of the attorney general, the state21treasurer, and the executive secretary of the state employees'22retirement system created by the state employees' retirement act,231943 PA 240, MCL 38.1 to 38.69, before the plan becomes effective24or operative in the county. Each county retirement plan operat-25ing under this section shall be approved by the committee as com-26plying with this section biennially. A financial statement for27each county retirement plan operating under this section shall be02687'01 13 1submitted annually to the county pension plan committee by the2county board, official, or employee designated by the county3board of commissioners. The financial statement shall be in the4form, contain the information, and be submitted as the county5pension plan committee prescribes. The state treasurer shall6audit the funds and accounts of county retirement plans estab-7lished under this section in the same manner as the state trea-8surer audits other county accounts and may audit and investigate9county retirement plan funds and accounts to the extent necessary10to effectuate the purposes of this section. This subsection does11not apply to a county that adopted a retirement plan under this12section and did not establish reserves on an actuarial basis13before October 11, 1947.14 (12)(13)If a county establishes a plan for the payment 15 of pension and retirement benefits to its employees pursuant to 16 this section, the county board of commissioners may provide for a 17 board of trustees to administer the plan and for the manner of 18 election or appointment of the members of the board of trustees. 19 The county board of commissioners may grant authority to the 20 board of trustees to fully administer and operate the plan and to 21 deposit, invest, and reinvest the funds and reserves of the plan 22 within the limitations prescribed by the county board of commis- 23 sioners in the plan. The county board of commissioners may 24 authorize the investment of funds of a county retirement plan 25 established under this section in anything in which the funds of 26 the state employees' retirement system or the funds of the 27 municipal employees retirement system may be invested, pursuant 02687'01 14 1 to the state employees' retirement act, 1943 PA 240, MCL 38.1 to 2 38.69, and the municipal employees retirement act of 1984, 1984 3 PA 427, MCL 38.1501 to 38.1555. A county retirement plan estab- 4 lished under this section may provide for financing, funding, and 5 the payment of benefits in the same manner and to the same extent 6 as is provided for in the state employees' retirement act, 1943 7 PA 240, MCL 38.1 to 38.69, and the municipal employees retirement 8 act of 1984, 1984 PA 427, MCL 38.1501 to 38.1555, may provide for 9 and require contributions by county employees, and may permit 10 additional employee contributions on a voluntary basis. 11 (13)(14)Upon the approval of the county board of commis- 12 sioners, a member who entered the armed service of the United 13 States before June 1, 1980 or who entered the armed service of 14 the United States on or after June 1, 1980 during a time of war 15 or emergency condition as described in section 1 of 1965 PA 190, 16 MCL 35.61, may elect to receive credited service for not more 17 than 5 years of active military service. Credit for military 18 service shall be given upon request and payment to the retirement 19 system of an amount equal to 5% of the member's full-time or 20 equated full-time annual compensation for the year in which pay- 21 ment is made multiplied by the number of years, and fraction of a 22 year, of credited service that the member elects to purchase up 23 to the maximum. Service shall not be credited if the service is 24 or would be credited under any other federal, state, or local 25 publicly supported retirement system, except for service that is 26 or would be credited under the federal government for services in 27 the reserve. Service shall not be credited under this subsection 02687'01 15 1 until the member has the number of years of credited service 2 needed to vest under the plan. Only completed years and months 3 of armed service shall be credited under this subsection. 4 (14)(15)A member who enters or entered any armed service 5 of the United States may purchase credited service for periods of 6 continuous active duty lasting 30 days or more, subject to the 7 following conditions: 8 (a) The county board of commissioners authorizes the pur- 9 chase of credited service under this subsection by an affirmative 10 vote of a majority of the members of the county board of 11 commissioners. The county board of commissioners shall establish 12 a written policy to implement the provisions of this subsection 13 in order to provide uniform application of this subsection to all 14 members of the plan. 15 (b) The member has at least the number of years of credited 16 service needed to vest under the plan, not including any credited 17 service purchased under this subsection and subsection(14)18 (13). 19 (c) The member pays the plan 5% of the member's annual com- 20 pensation multiplied by the period of credited service being 21 purchased. As used in this subdivision, "annual compensation" 22 means the aggregate amount of compensation paid the member during 23 the 4 most recent calendar quarters for each of which the member 24 was credited 3/12 of a year of credited service. 25 (d) Fractional months of armed service shall not be recog- 26 nized for the purposes of this subsection. 02687'01 16 1 (e) Armed service credited a member under subsection(14)2 (13) shall not be the basis of credited service under this 3 section. 4 (f) Armed service credited a member under this subsection 5 shall not exceed either 5 years or the difference between 5 years 6 and the armed service credited the member under subsection(14)7 (13). 8 (g) Credited service shall not be granted for periods of 9 armed service that are or could be used for obtaining or increas- 10 ing a benefit from another retirement system, except for service 11 that is or would be credited under the federal government for 12 services in the reserve. 13 (15)(16)As used in this subsection, "transitional public 14 employment program" means a public service employment program in 15 the area of environmental quality, health care, education, public 16 safety, crime prevention and control, prison rehabilitation, 17 transportation, recreation, maintenance of parks, streets, and 18 other public facilities, solid waste removal, pollution control, 19 housing and neighborhood improvements, rural development, conser- 20 vation, beautification, veterans' outreach, or any other area of 21 human betterment and community improvement as part of a program 22 of comprehensive manpower services authorized, undertaken, and 23 financed pursuant to the former comprehensive employment and 24 training act of 1973, Public Law 93-203. A person participating 25 in a transitional public employment program shall not be eligible 26 for membership in a retirement system or pension plan established 27 under this section. If the person later becomes a member of a 02687'01 17 1 retirement system or pension plan established under this section 2 within 12 months after the date of termination as a participant 3 in a transitional public employment program, service credit shall 4 be given for employment in the transitional public employment 5 program for purposes of determining a retirement allowance upon 6 the payment by the person and the person's employer under the 7 transitional public employment program from funds provided under 8 the former comprehensive employment and training act of 1973, 9 Public Law 93-203, as funds permit, to the retirement system of 10 the contributions, plus regular interest, the person and the 11 employer would have paid had the employment been rendered in a 12 position covered by this section. During the person's employment 13 in the transitional public employment program, the person's 14 employer shall provide an opportunity by payroll deduction for 15 the person to make his or her employee contribution to the appli- 16 cable pension system. To provide for the eventual payment of the 17 employer's contribution, the person's employer shall during this 18 same period place in reserve a reasonable but not necessarily an 19 actuarially determined amount equal to the contributions that the 20 employer would have paid to the retirement system for those 21 employees in the transitional public employment program as if 22 they were members under this section, but only for that number of 23 employees that the employer determined would transfer from the 24 transitional public employment program into positions covered by 25 this section. If the funds provided under the former comprehen- 26 sive employment and training act of 1973, Public Law 93-203, are 02687'01 18 1 insufficient, the remainder of the employer contributions shall 2 be paid by the person's current employer. 3 (16)(17)Subsection(16)(15) does not exclude the par- 4 ticipant in a transitional public employment program from the 5 accident, disability, or other benefits available to members of 6 the retirement system covered by this section. 7 (17)(18)If a probate judge who is a member of a plan 8 established under this section contributes for 20 years or more, 9 the county board of commissioners may allow the probate judge to 10 cease further contributions. 11 (18)(19)An employee of the circuit court in the third 12 judicial circuit, the common pleas court of the city of Detroit, 13 or the recorder's court of the city of Detroit who became an 14 employee of the state judicial council on September 1, 1981, and 15 who was 44 years of age or older as of that date, and who will 16 have accumulated 25 or more years of service credit by 17 September 1, 1987, shall continue to be eligible for membership 18 in, and the benefits of, a pension or retirement benefit plan 19 established pursuant to this section in the same manner as the 20 employee was eligible before September 1, 1981. A person who was 21 an employee of the circuit court in the third judicial circuit, 22 the common pleas court of the city of Detroit, or the recorder's 23 court of the city of Detroit on August 31, 1981, who last entered 24 county employment before November 2, 1956, who became an employee 25 of the state judicial council on September 1, 1981, and who accu- 26 mulated not less than 24 years of service credit by August 31, 27 1981, shall continue to be eligible for membership in, and the 02687'01 19 1 benefits of, a pension or retirement benefit plan established 2 pursuant to this section in the same manner as the employee was 3 eligible before September 1, 1981. An election to continue to be 4 a member of a pension or retirement benefit plan established pur- 5 suant to this section as authorized by section 594(2) of the 6 revised judicature act of 1961, 1961 PA 236, MCL 600.594, as that 7 section read on February 8, 1985, or former section 36(2) of 1919 8 PA 369, is not effective unless the employee has made the elec- 9 tion in the manner prescribed by those sections and has made the 10 payments required by those sections. 11 (19)(20)A plan adopted under this section may provide 12 that an employee of the circuit court in the third judicial cir- 13 cuit, the common pleas court of the city of Detroit, or the 14 recorder's court of the city of Detroit who is a member of the 15 Wayne county employees' retirement system on August 31, 1981, who 16 becomes an employee of the state judicial council and a member of 17 the state employees' retirement system on September 1, 1981, 18 receive a benefit based on the annual average of the highest 19 actual compensation received by the employee during a period of 5 20 years of county or state service. 21 (20)(21)Beginning September 1, 1981, for determining the 22 retirement benefit for a county employee who is a judge of a 23 municipal court of record pursuant to subsection (2), "average 24 final compensation" means the annual average of the highest 25 actual compensation received by the judge as additional salary 26 pursuant to former section 13(2) of 1919 PA 369, or section 27 9932(3) of the revised judicature act of 1961, 1961 PA 236, 02687'01 20 1 MCL 600.9932, during a period of 5 years of service as specified 2 in the plan. This subsection shall not be construed to diminish 3 or impair an accrued financial benefit. 4 (21)(22)Beginning September 1, 1981, for each county 5 employee who is a judge of a municipal court of record, or of the 6 circuit or district court, the sum of the average final compensa- 7 tion determined for that county employee pursuant to this section 8 and the final salary determined for that county employee as a 9 member of the state of Michigan judges' retirement system created 10 by former 1951 PA 198, or as a member of the Michigan judges 11 retirement system created by the judges retirement act of 1992, 12 1992 PA 234, MCL 38.2101 to 38.2670, shall not exceed the 13 employee's total annual judicial salary payable from all sources 14 at the time of his or her retirement. This subsection shall not 15 be construed to diminish or impair an accrued financial benefit. 16 (22)(23)Beginning September 1, 1981, for each county 17 employee who is a judge of the probate court, the sum of the 18 average final compensation calculated for that employee pursuant 19 to this section and the final salary calculated for that employee 20 as a member of the state of Michigan probate judges retirement 21 system created by former 1954 PA 165 or as a member of the 22 Michigan judges retirement system created by the judges retire- 23 ment act of 1992, 1992 PA 234, MCL 38.2101 to 38.2670, shall not 24 exceed the employee's total annual judicial salary payable from 25 all sources at the time of his or her retirement. This subsec- 26 tion shall not be construed to diminish or impair an accrued 27 financial benefit. 02687'01 21 1 (23)(24)Beginning September 1, 1981, for determining a 2 retirement benefit pursuant to subsection (2) for a county 3 employee who is a judge who receives an annuity pursuant to sec- 4 tion 14(5) of former 1951 PA 198 or pursuant to section 503(2)(c) 5 of the judges retirement act of 1992, 1992 PA 234, MCL 38.2503, 6 "average final compensation" means the difference between the 7 judge's total annual salary payable from all sources on August 8 31, 1981, and the judge's state base salary payable on August 31, 9 1981. This subsection shall not be construed to diminish or 10 impair an accrued financial benefit. 11 (24)(25)Beginning January 1, 1983, the sum of the final 12 salary determined for each county employee who is a judge of the 13 probate court used as the basis for determining the judge's 14 retirement allowance as a member of a retirement system estab- 15 lished pursuant to this section and the salary or compensation 16 figure used as the basis for determining the judge's retirement 17 allowance as a member of the state of Michigan judges' retirement 18 system created by former 1951 PA 198 or as a member of the 19 Michigan judges retirement system created by the judges retire- 20 ment act of 1992, 1992 PA 234, MCL 38.2101 to 38.2670, shall not 21 exceed the judge's total annual salary payable from all sources 22 at the time of his or her retirement. This subsection shall not 23 be construed to diminish or impair an accrued financial benefit. 24 (25)(26)The county board of commissioners, upon the 25 request of a county employee, by not less than a 3/5 vote may 26 credit that county employee with the amount of membership service 27 that the county employee was previously credited with by the 02687'01 22 1 retirement system established under this section under the 2 following conditions: 3 (a) The membership service previously credited to the county 4 employee was service rendered for the same county. 5 (b) Service that is recognized for the purpose of a deferred 6 retirement allowance under a retirement system or other 7 employer-funded retirement benefit plan, except for a retirement 8 benefit plan under the social security act, chapter 531, 49 9 Stat. 620, of the United States government, a state, or a politi- 10 cal subdivision of a state shall not be credited if the county 11 employee retired under a retirement system of the United States 12 government, a state, or any of their political subdivisions or 13 until the county employee irrevocably forfeits the right to the 14 deferred retirement allowance. 15 (c) The county employee deposits in the plan established 16 under this section an amount equal to the aggregate amount of 17 contributions the county employee made at the time of the previ- 18 ous membership service plus interest from the date of withdrawal 19 of the accumulated contributions to the date of deposit, at rates 20 determined by the county board of commissioners. If records are 21 insufficient or unavailable to compute the exact amount of 22 required deposit, the county board of commissioners may estimate 23 the amount. 24 (d) The county employee deposits in the county employees' 25 retirement system an amount equal to the aggregate amount of con- 26 tributions the employer made at the time of the previous 27 membership service plus interest from the date of separation to 02687'01 23 1 the date of deposit, at rates determined by the county board of 2 commissioners. 3 (26)(27)A person participating in a program described in 4 this subsection is not eligible for membership in a retirement 5 system or pension plan established under this section. In addi- 6 tion, that person shall not receive service credit for the 7 employment described in this subsection even though the person 8 subsequently becomes or has been a member of the retirement 9 system. This subsection applies to all of the following: 10 (a) A person, not regularly employed by the county, who is 11 employed by the county through participation in a program estab- 12 lished pursuant to the job training partnership act, Public Law 13 97-300, 96 Stat. 1322. 14 (b) A person, not regularly employed by the county, who is 15 employed by the county through participation in a program estab- 16 lished pursuant to the Michigan opportunity and skills training 17 program, first established under sections 12 to 23 of 1983 18 PA 259. 19 (c) A person, not regularly employed by the county, who is 20 employed by the county through participation in a program estab- 21 lished pursuant to the Michigan community service corps program, 22 first established under sections 25 to 35 of 1983 PA 259 and sec- 23 tions 148 to 160 of 1984 PA 246. 24 (d) A person, not regularly employed by the county, who is 25 hired by the county to administer a program described in subdivi- 26 sion (a), (b), or (c). 02687'01 24 1 (27)(28)If a county enters into a collective bargaining 2 agreement pursuant to 1947 PA 336, MCL 423.201 to 423.217, that 3 provides for retirement benefits that are in excess of the 4 retirement benefits otherwise authorized to be provided under 5 this section for employees of the county who are covered by a 6 plan under this section, then the county board of commissioners 7 may amend or adopt a plan under this section to provide those 8 benefits to employees who are members of the bargaining unit cov- 9 ered by the agreement, and may, after December 31, 1987, amend or 10 adopt a plan under this section to provide those benefits to 11 other employees of the county. 12 (28)(29)One of the following conditions applies to a 13 retirant who is receiving a pension or retirement benefit from a 14 plan under this section if the retirant becomes employed by a 15 county that has established a plan under this section: 16 (a) Payment of the pension or retirement benefit to the 17 retirant shall be suspended if the retirant is employed by the 18 county from which the retirant retired and the retirant does not 19 meet the requirements of subdivision (b) or (d). Suspension of 20 the payment of the pension or retirement benefit shall become 21 effective the first day of the calendar month that follows the 22 sixtieth day after the retirant is employed by the county. 23 Payment of the pension or retirement benefit shall resume on the 24 first day of the calendar month that follows termination of the 25 employment. Payment of the pension or retirement benefit shall 26 be resumed without change in amount or conditions by reason of 02687'01 25 1 the employment. The retirant shall not be a member of the plan 2 during the period of employment. 3 (b) Payment of the pension or retirement benefit to the 4 retirant shall continue without change in amount or conditions by 5 reason of employment by the county from which the retirant 6 retired if all of the following requirements are met: 7 (i) The retirant meets 1 of the following requirements: 8 (A) For any retirant, is employed by the county for not more 9 than 1,000 hours in any 12-month period. 10 (B) For a retirant who was not an elected or appointed 11 county official at retirement, is elected or appointed as a 12 county official for a term of office that begins after the 13 retirant's retirement allowance effective date. 14 (C) For a retirant who was an elected or appointed county 15 official at retirement, is elected or appointed as a county offi- 16 cial to a different office from which the retirant retired for a 17 term of office that begins after the retirant's retirement allow- 18 ance effective date. 19 (D) For a retirant who was an elected or appointed county 20 official at retirement, is elected or appointed as a county offi- 21 cial to the same office from which the retirant retired for a 22 term of office that begins 2 years or more after the retirant's 23 retirement allowance effective date. 24 (ii) The retirant is not eligible for any benefits from the 25 county other than those required by law or otherwise provided to 26 the retirant by virtue of his or her being a retirant. 02687'01 26 1 (iii) The retirant is not a member of the plan during the 2 period of reemployment, does not receive additional retirement 3 credits during the period of reemployment, and does not receive 4 any increase in pension or retirement benefits because of the 5 employment under this subdivision. 6 (c) Payment of the pension or retirement benefit to the 7 retirant shall continue without change in amount or conditions by 8 reason of the employment if the retirant becomes employed by a 9 county other than the county from which the retirant retired. 10 For the purposes of membership and potential benefit entitlement 11 under the plan of the other county, the retirant shall be consid- 12 ered in the same manner as an individual with no previous record 13 of employment by that county. 14 (d) Payment of the pension or retirement benefit to the 15 retirant shall continue without change in amount or conditions by 16 reason of employment by the county from which the retirant 17 retired if the retirant was an employee of the state judicial 18 council on September 30, 1996, and becomes a county-paid employee 19 of the recorder's court of the city of Detroit or the third judi- 20 cial circuit of the circuit court on October 1, 1996. 21 (29)(30)A county may increase the percentage of the 22 highest average monthly compensation or earnings that was used to 23 calculate the pension or retirement benefit under 24 subsection (1)(b) of a person receiving a pension or retirement 25 benefit under this section on the date the county increases the 26 percentage of compensation or earnings. The county shall 27 recalculate the pension or retirement benefit using the increased 02687'01 27 1 percentage of compensation or earnings. The person receiving the 2 pension or retirement benefit is eligible to receive an adjusted 3 pension or retirement benefit based upon the recalculation effec- 4 tive the first day of the month following the date the county 5 increases the percentage of compensation or earnings under this 6 subsection. 7 (30)(31)The payment of pension or retirement benefits 8 under a plan established pursuant to this section is subject to 9 an eligible domestic relations order under the eligible domestic 10 relations order act, 1991 PA 46, MCL 38.1701 to 38.1711. 11 (31)(32)If a county retirement plan established under 12 this section provides an optional form of payment of a retirement 13 allowance and if a retirant receiving a reduced retirement allow- 14 ance under that plan is divorced from the spouse who had been 15 named the retirant's survivor beneficiary, the election of a 16 reduced retirement allowance form of payment shall be considered 17 void by the retirement system if the judgment of divorce or award 18 or order of the court, or an amended judgment of divorce or award 19 or order of the court dated after July 18, 1991 provides that the 20 election of a reduced retirement allowance form of payment is to 21 be considered void by the retirement system and the retirant pro- 22 vides a certified copy of 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, to the retirement system. If the election of 25 a reduced retirement allowance form of payment is considered void 26 by the retirement system under this subsection, the retirant's 27 retirement allowance shall revert to a straight life retirement 02687'01 28 1 allowance, including postretirement adjustments, if any, subject 2 to an award or order of the court. The retirement allowance 3 shall revert to a straight life retirement allowance under this 4 subsection effective the first of the month after the date the 5 retirement system receives a certified copy of the judgment of 6 divorce or award or order of the court. This subsection does not 7 supersede a judgment of divorce or award or order of the court in 8 effect on July 18, 1991. This subsection does not require the 9 retirement system to distribute or pay retirement assets on 10 behalf of a retirant in an amount that exceeds the actuarially 11 determined amount that would otherwise become payable if a judg- 12 ment of divorce had not been rendered. 13 (32)(33)A county board of commissioners of a county 14 having a population of more than 400,000 but less than 800,000, 15 which county has an employee credit union organized under 1925 16 PA 285, MCL 490.1 to 490.31, may include as a member of a plan 17 under this section a past or present employee of the credit 18 union, if that past or present employee has 5 or more years of 19 service credit with that credit union on or before June 30, 20 1990. 21 (33)(34)The county board of commissioners shall estab- 22 lish a written policy to implement the provisions of this section 23 in order to provide uniform application of this section to all 24 members of the plan. 02687'01 Final page. MRM