HB-4799, As Passed Senate, September 23, 2007
SUBSTITUTE FOR
HOUSE BILL NO. 4799
(As amended, September 23, 2007)
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 2006 PA 158.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 61. (1) Except as otherwise provided in this section, if
a retirant is receiving a retirement allowance other than a
disability allowance payable under this act or under former 1945 PA
136, on account of either age or years of personal service
performed, or both, and becomes employed by a reporting unit
<<OR IS HIRED AS AN INDEPENDENT CONTRACTOR BY A REPORTING UNIT
>>, the following shall take place:
(a) The retirant shall not be entitled to a new final average
House Bill No. 4799 as amended September 23, 2007
compensation or additional service credit under this retirement
system unless additional service is performed equivalent to 5 or
more years of service credit or, if the retirant has contributed to
the member investment plan, the equivalent of 3 or more years of
service credit. The retirant may elect to have the retirement
allowance recomputed based on the added credit or the final average
compensation resulting from the added service, or both. A
retirement allowance shall not be recomputed until the retirant
pays into the retirement system an amount equal to the retirant's
new final average compensation multiplied by the percentage
determined under section 41(2) for normal cost and unfunded
actuarial accrued liabilities, not including the percentage
required for the funding of health benefits, multiplied by the
total service credit in the period in which the retirant's
additional service was performed.
(b)
<<The
>> retirant's retirement allowance shall be
reduced by the lesser of the amount that the earnings in a calendar
year exceed the amount permitted without a reduction of benefits
under the social security act, chapter 531, 49 Stat. 620, or 1/3 of
the retirant's final average compensation. For purposes of
computing allowable earnings under this subdivision, the final
average compensation shall be increased by 5% for each full year of
retirement.
<<(C) THE RETIRANT SHALL CERTIFY THAT THE HOSPITAL, MEDICAL-
SURGICAL, AND SICK CARE BENEFITS PLAN, DENTAL PLAN, VISION PLAN, AND
HEARING PLAN, AS APPLICABLE, THAT COVERS RETIRANTS, RETIREMENT ALLOWANCE
BENEFICIARIES, AND HEALTH INSURANCE DEPENDENTS CONTAINS A COORDINATION OF BENEFITS PROVISION SO THAT THE PLAN IS COORDINATED WITH ALL OTHER PLANS AVAILABLE TO THE RETIRANT UNDER SECTION 91.
House Bill No. 4799 as amended September 23, 2007
(2) The retirement system may offset retirement benefits
payable under this act against amounts owed to the
retirement
system by a retirant or retirement allowance beneficiary.>>
(3)
Subsection (1) does not apply to a retirant if all of the
following
circumstances exist:
(a)
The retirant is a former teacher or administrator employed
in
a teaching or research capacity by a university that is
considered
a reporting unit for the limited purpose described in
section
7(3).
(b)
The retirant is not eligible to use any service or
compensation
attributable to the employment described in
subdivision
(a) for a recomputation of his or her retirement
allowance.
(c)
A university that employs a retirant pursuant to this
subsection
shall report such employment to the retirement system by
July
1 of each year. The report to be filed shall include the name
of
the retirant, the capacity in which the retirant is employed,
and
the total annual compensation paid to the retirant.
(4)
Until July 1, 2011, subsection (1) does not apply to a
retirant
if all of the following circumstances exist:
(a)
The retirant is employed by a reporting unit that has an
approved
emergency situation, not including a situation caused by a
labor
dispute, that necessitates the hiring of a retirant in the
capacity
of a teacher, principal, stationary engineer,
administrator,
or other category as determined by the
superintendent
of public instruction to prevent depriving students
of
an education. The chief executive officer or superintendent of
the
school district shall include with the written notification
documentation
showing that more than 8% of all classes in the
district
during the 1998-99 school year are taught by full-time
substitute
teachers who are not certificated in the subjects or
grade
levels which they teach. Within 30 days after receipt of the
notification
and documentation under this subdivision, the
department
of education shall notify the chief executive officer or
superintendent
and the retirement system of its approval or
disapproval
of the emergency situation. If disapproved by the
department
of education, this subsection does not apply.
(b)
The retirant is employed under an emergency situation
described
in subdivision (a) for a period not to exceed 6 years.
(c)
The retirant is not eligible to use any service or
compensation
attributable to the employment described in
subdivision
(a) for a recomputation of his or her retirement
allowance.
(5)
On or before July 1, 1999, the state superintendent of
public
instruction shall compile a listing of critical shortage
disciplines.
This listing shall be updated annually.
(6)
Until July 1, 2011, subsection (1) does not apply to a
retirant
if all of the following circumstances exist:
(a)
The retirant is employed by a reporting unit that has a
situation,
not including a situation caused by a labor dispute,
that
necessitates the hiring of a retirant in an area that has been
identified
by the state superintendent of public instruction as a
critical
shortage discipline pursuant to subsection (5).
(b)
The retirant is employed under a situation described in
House Bill No. 4799 as amended September 23, 2007
subdivision
(a) for a period not to exceed 6 years.
(c)
The retirant is not eligible to use any service or
compensation
attributable to the employment described in
subdivision
(a) for a recomputation of his or her retirement
allowance.
(7)
The provisions of subsections (4) and (6) shall only apply
for
retirants who have been retired for at least 12 months before
becoming
employed under this section.
<<(2)>> Subsection (1) does not apply if all of the following
conditions apply:
(a) The retirant has been directly reemployed by a reporting
unit.
(b) Until July 1, 2009, the retirant is employed by a
reporting unit that has an approved emergency situation, not
including a situation caused by a labor dispute, that necessitates
the hiring of a retirant in the capacity of a teacher, principal,
stationary engineer, administrator, or other category as determined
by the superintendent of public instruction to prevent depriving
students of an education. The chief executive officer or
superintendent of the school district shall include with the
written notification documentation showing that more than 8% of all
classes in the district during the 1998-1999 school year are taught
by full-time substitute teachers who are not certificated in the
subjects or grade levels which they teach. Within 30 days after
receipt of the notification and documentation under this
subdivision, the superintendent of public instruction shall notify
the chief executive officer or superintendent and the retirement
system of his or her approval or disapproval of the emergency
situation and of each specific position of reemployment of a
retirant proposed by the chief executive officer or superintendent.
(c) The retirant is employed under an emergency situation
described in subdivision (b) for a period not to exceed 6 years.
(d) The retirant is not eligible to use any service or
compensation attributable to the employment described in
subdivision (b) for a recomputation of his or her retirement
allowance.
Enacting section 1. This amendatory act does not take effect
unless House Bill No. 4500 of the 94th Legislature is enacted into
law.
Enacting section 2. This amendatory act takes effect January
1, 2008.