SB-0689, As Passed Senate, August 30, 2007
SUBSTITUTE FOR
SENATE BILL NO. 689
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 December 31, 2007, 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 within the classified state civil service,
is an employee of the judicial branch, or is an individual not
described in subsection (2)(b).
(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 or was an employee of the
state judicial council on September 30, 1996 as described in
section 44a. A member who is on layoff status from state employment
is considered to have met the employment requirement of this
subdivision.
(d) Except as may be provided otherwise in subsection (5), the
member executes and files a written application with the retirement
board, on or after August 1, 2007, but not later than October 31,
2007, stating a date on or after November 1, 2007, but not later
than December 31, 2007, on which he or she desires to retire. A
member may withdraw a written application on or before December 15,
2007 or 7 days after the rejection of an extension requested under
subsection (5), whichever is later. A written application submitted
by a member and not withdrawn on or before December 15, 2007 or 7
days after the rejection of an extension requested under subsection
(5), whichever is later, is irrevocable.
(e) The member is not employed in a covered position defined
in section 45.
(f) The member is not a conservation officer as described in
section 48.
(2) 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 December 31, 2007, 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 employee of the legislature, is an
employee of the office of governor, or is an unclassified employee
within the executive branch.
(c) Except as provided in section 13(8), the member was
employed by this state or the legislature 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) Except as may be provided otherwise in subsection (5), the
member executes and files a written application with the retirement
board, on or after August 1, 2007, but not later than October 31,
2007, stating a date on or after November 1, 2007, but not later
than December 31, 2007, on which he or she desires to retire. A
member may withdraw a written application on or before December 15,
2007 or 7 days after the rejection of an extension requested under
subsection (5), whichever is later. A written application submitted
by a member and not withdrawn on or before December 15, 2007 or 7
days after the rejection of an extension requested under subsection
(5), whichever is later, is irrevocable.
(e) The member is not employed in a covered position defined
in section 45.
(f) The member is not a conservation officer as described in
section 48.
(3) 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, 2007.
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(1), 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) 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 or any other accumulated leave otherwise
paid in a lump sum at retirement, if applicable, shall be paid in
60 consecutive equal monthly installments on or after November 1,
2007. These payments are not pensions, annuities, retirement
allowances, optional benefits, or any other rights described in
section 40(1), 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.
(5) The director of a principal department may request that
the effective date of retirement under subsection (1) of a member
employed by that department be extended to a date not later than
December 31, 2010. To make a request under this subsection, the
director shall submit a written request and the written concurrence
of the member to the office of the state employer and the state
budget office on or before December 31, 2007. Upon receipt of the
written request and concurrence, the office of the state employer
and the state budget office may extend the effective date of
retirement of a member otherwise eligible to retire under
subsection (1) to a date not later than December 31, 2010. Upon
written approval of the senate majority leader for a member who is
an employee of the senate, the speaker of the house of
representatives for a member who is an employee of the house of
representatives, the senate majority leader and the speaker of the
house of representatives for a member who is an employee of the
office of the auditor general, director or chair of the legislative
retirement system for a member who is an employee of the
legislative retirement system, or the chair and alternate chair of
the legislative council for a member who is an employee of an
agency under the jurisdiction of the legislative council, and upon
written concurrence of the member, the effective date of retirement
for that member under subsection (2) may be extended to a date not
later than December 31, 2010. Upon written approval of the chief
justice for a member who is an employee of the judicial branch,
including, but not limited to, members described in section 44a,
and upon written concurrence of the member, the effective date of
retirement for that member under subsection (1) may be extended to
a date not later than December 31, 2010. The individual or
individuals who approve the extension of an effective date of
retirement for a member who is an employee of the legislature,
supreme court, or court of appeals shall submit written
notification to the office of retirement services of all extensions
approved on or before December 31, 2007. A member who has elected
to extend his or her effective date of retirement under this
section shall not receive a retirement allowance under this section
until on or after the extended effective date of retirement. The
retirement allowance of a member who has elected to extend his or
her retirement under this section shall be calculated under
subsection (6) without taking into account the additional years of
service or final average compensation accruing as a result of the
extension.
(6) Except as otherwise provided in subsection (5), 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).
(7) 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).
(8) 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.