May 9, 2007, Introduced by Rep. David Law and referred to the Committee on Government Operations.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 60 (MCL 38.60), as added by 1996 PA 487.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 60. (1) A qualified participant shall not participate in
any other public sector retirement benefits plan for simultaneous
service rendered to the same public sector employer. Except as
otherwise provided in this act or by the state treasurer, this
section does not prohibit a qualified participant from
participating in a retirement plan established by this state or
other public sector employer under the internal revenue code.
(2) A qualified participant who first becomes a qualified
participant on or after July 1, 2007 consents as a condition of
participation in Tier 2 that he or she shall not receive a
retirement allowance or other benefit from any other public sector
retirement benefits plan while holding the position that qualifies
him or her for participation in Tier 2 and the other plan. A
qualified participant who receives a retirement allowance in
violation of this subsection forfeits his or her right to employer
contributions under this act. If a qualified participant violates
this subsection, this state shall immediately suspend employer
contributions under this act. A qualified participant who is a
contributing member in a local public sector retirement benefits
plan on the day before he or she becomes a qualified participant in
Tier 2 and who does not have a vested right to a retirement benefit
under that plan on that date may withdraw the contributions made by
that participant to the local plan without violating this
subsection. This subsection does not apply to a former qualified
participant.