PSERS: PURCHASE CHILD REARING CREDIT
House Bill 4243
Sponsor: Rep. Tupac Hunter
Committee: Senior Health, Security and Retirement
Complete to 3-4-03
A SUMMARY OF HOUSE BILL 4243 AS INTRODUCED 2-18-03
Under the Public School Employees Retirement Act, a member of the retirement system may purchase service credit at actuarial cost for up to five years for maternity, paternity, or child rearing leave. Under current law, to be eligible to purchase service credit under this provision, the time must be preceded and succeeded by time spent working as a public school employee, without other intervening employment of more than 20 hours per week.
House Bill 4243 would amend this provision to allow a member of the retirement system to purchase service credit for maternity, paternity, or child rearing time that occurred before the person became a public school employee. Further, for a period of one year after the bill's effective date, service credit purchased under this provision would be at a cost calculated based on the member's age at the time he or she first became a member of the retirement system (rather than at the age of the member on the date of the purchase).
MCL 38.1375
_____________________________________________________________________________________________________________________
This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.