HB-6379, As Passed House, December 4, 2008
SUBSTITUTE FOR
HOUSE BILL NO. 6379
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
(MCL 38.1 to 38.69) by adding section 19k.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 19k. (1) Notwithstanding section 19, a member may retire
and receive a retirement allowance computed under this section if
the member meets all of the following requirements:
(a) On or before January 1, 2010, or on the effective date of
his or her retirement, whichever is earlier, the member's combined
age and length of credited service is equal to or greater than 75
years.
(b) The member is an individual employed by the Wayne county
judicial council, if created, by the Detroit judicial council, if
created, or by the city of Detroit or Wayne county performing
judicial duties in the circuit court in the third judicial circuit,
in the recorder's court of the city of Detroit, or in the district
court in the thirty-sixth district.
(c) Except as provided in section 13(8), the member was
employed by this state for the 6-month period ending on the
effective date of his or her retirement. A member who is on layoff
status from state employment is considered to have met the
employment requirement of this subdivision.
(d) The member executes and files a written application with
the retirement board, on or after August 1, 2009, but not later
than November 1, 2009, stating a date on or after November 1, 2009,
but not later than January 1, 2010, on which he or she desires to
retire. A member may withdraw a written application on or before
December 15, 2009. A written application submitted by a member and
not withdrawn on or before December 15, 2009 is irrevocable.
(e) The member is not eligible for a supplemental early
retirement under section 46 as a covered employee defined in
section 45 on or after November 1, 2009 through the effective date
of the member's retirement under this section.
(f) The member is not a conservation officer as described in
section 48.
(2) Any amount that a member retiring under this section would
otherwise be entitled to receive in a lump sum at retirement on
account of accumulated sick leave shall be paid in 60 consecutive
equal monthly installments beginning on or after November 1, 2009.
Payments received under this subsection shall not be used to
purchase service credit under this act. These payments for
accumulated sick leave are to be paid from funds appropriated to
the appointing authority and not from funds of the retirement
system. These payments are not pensions, annuities, retirement
allowances, optional benefits, or any other rights described in
section 40, are not exempt from taxation, are subject to execution,
garnishment, attachment, the operation of bankruptcy or insolvency
laws, or other process of law, and may be assignable as provided in
this act.
(3) Any amount that a member retiring under this section is
entitled to receive in a lump sum at retirement on account of
accumulated annual leave shall be paid on or after November 1,
2009. These payments are not pensions, annuities, retirement
allowances, optional benefits, or any other rights described in
section 40, are not exempt from taxation, are subject to execution,
garnishment, attachment, the operation of bankruptcy or insolvency
laws, or other process of law, and may be assignable as provided in
this act.
(4) Upon his or her retirement as provided in this section, a
member who did not make an election under section 50 to terminate
membership in Tier 1 and become a qualified participant in Tier 2
shall receive a retirement allowance equal to the member's number
of years and fraction of a year of credited service multiplied by
1-3/4% of his or her final average compensation. Except for the
calculation provided in this subsection, the member's retirement
allowance is subject to section 20. The member's retirement
allowance is not subject to reduction pursuant to section 19(2).
(5) Upon his or her retirement as provided in this section, a
former member who made an election under section 50 to terminate
membership in Tier 1 and become a qualified participant in Tier 2
shall receive a retirement allowance equal to the member's number
of years and fraction of a year of credited service multiplied by
1/4% of his or her final average compensation. Except for the
calculation provided in this subsection, the former member's
retirement allowance is subject to section 20. The former member's
retirement allowance is not subject to reduction pursuant to
section 19(2).
(6) For purposes of this section, an individual who elected to
terminate membership under section 50 and who, but for that
election, would otherwise be eligible for membership in Tier 1
under section 13, shall be considered a member of Tier 1 for the
limited purpose of receiving a retirement allowance calculated
under this section and paid by the retirement system.