HB-6113, As Passed House, December 4, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6113

     A bill to amend 1961 PA 88, entitled

"Reciprocal retirement act,"

by amending sections 4 and 5 (MCL 38.1104 and 38.1105), as amended

by 1990 PA 274.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 4. A member of a reciprocal retirement system who leaves

the employ of a reciprocal unit, designated as the preceding

reciprocal unit, and enters the employ of another governmental

unit, designated as the succeeding governmental unit, shall be

entitled to a retirement allowance payable by the preceding

reciprocal unit's retirement system subject to the following

conditions:

     (a) The member has 30 months or more of credited service in

force acquired in the employ of the preceding reciprocal unit.

     (b) The Beginning September 1, 2006, the member does not

withdraw his or her accumulated deposits from the preceding

reciprocal unit's retirement system, or if the member has withdrawn

the accumulated deposits, the member deposits with the preceding

reciprocal unit the amount withdrawn together with interest

compounded annually at the rate in effect for the preceding

reciprocal unit; the deposit to be made within 5 20 years after the

date the member becomes employed by the succeeding governmental

unit.

     (c) The Beginning September 1, 2006, the member enters the

employ of each succeeding governmental unit within 15 20 years

after the date of leaving the employ of each preceding governmental

unit.

     (d) The member's credited service in force with the preceding

reciprocal retirement systems plus the member's credited service

acquired in the employ of succeeding governmental units equals or

exceeds the minimum credited service required for age and service

retirement in the applicable preceding reciprocal retirement

system.

     (e) The retirement allowance payable by any preceding

reciprocal retirement system shall be determined at the time the

member ceased to be a member of the preceding reciprocal retirement

system, upon the basis of the retirement allowance formula of the

preceding reciprocal retirement system, the member's credited

service in force in the preceding reciprocal retirement system, and

the member's final average salary at that time.

     (f) Payment of a retirement allowance by a preceding

reciprocal retirement system shall begin on the first day of the

second calendar month immediately following the month in which

proper written application is filed with the governing body of the

preceding reciprocal retirement system on or after attainment of 60

years of age. The retirement allowance shall not begin before

attainment of the minimum age for age and service retirement

required in the preceding reciprocal retirement system.

     Sec. 5. A member of a reciprocal retirement system who has 30

months or more of credited service acquired as a member of the

system and who has attained the age but has not met the service

requirements for age and service retirement shall be entitled to

use his or her credited service in force previously acquired as a

member of governmental unit retirement systems in meeting the

service requirements of the system from which he or she retires. If

Beginning September 1, 2006, if the member has a break in

governmental unit employment for a period longer than 15 20 years,

his or her service rendered in the employ of the governmental units

prior to his or her last break in service shall not be used in

satisfying the service requirement for age and service retirement

in the system from which he or she retires. Except as provided in

section 6, credited service acquired in a governmental unit in

which the member was previously employed shall not be used in

determining the amount of his or her retirement allowance payable

by the reciprocal retirement system from which he or she retires

unless otherwise provided by the retirement system.