May 13, 2008, Introduced by Rep. Walker and referred to the Committee on Government Operations.
A bill to amend 1961 PA 88, entitled
"Reciprocal retirement act,"
by amending section 4 (MCL 38.1104), 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 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if the member has withdrawn the accumulated deposits, the member
deposits with the preceding reciprocal unit the amount withdrawn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
years after the date the member becomes employed by the succeeding
governmental unit.
(c) 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.