December 10, 2009, Introduced by Rep. Dillon and referred to the Committee on Public Employee Health Care Reform.
A bill to amend 1937 PA 345, entitled
"Fire fighters and police officers retirement act,"
by amending section 9 (MCL 38.559), as amended by 2002 PA 98.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9. (1) The contributions of a member to the retirement
system shall be 5% of the salary paid to the member by the
municipality. The officer responsible for making up the payroll
shall cause the contributions provided for in this subsection to be
deducted from the salary of each member on each payroll for each
payroll period so long as he or she remains an active member in the
employ of the municipality. The amounts deducted shall be paid into
the funds of the retirement system. The members' contributions
provided for in this act shall be made notwithstanding that the
minimum salary provided for by law is changed by the members'
contributions. Every member shall be considered to consent and to
agree to the deductions made and provided for in this act and shall
receipt for his or her full salary and payment of his or her salary
less the deduction, which is a full and complete discharge and
acquittance of all claims and demands for the services rendered by
the member during the period covered by the payment, except as to
benefits provided by this retirement system.
(2) For the purpose of creating and maintaining a fund for the
payment of the pensions and other benefits payable as provided in
this
act, the municipality, subject to the provisions of this act,
shall
appropriate, at the end of such the
regular intervals as may
be
that are adopted, quarterly, semiannually, or annually, an
amount sufficient to maintain actuarially determined reserves
covering pensions payable or that might be payable on account of
service performed and to be performed by active members, and
pensions being paid to retired members and beneficiaries. The
appropriations to be made by the municipality in any fiscal year
shall be sufficient to pay all pensions due and payable in that
fiscal year to all retired members and beneficiaries. The amount of
the appropriation in a fiscal year shall not be less than 10% of
the aggregate pay received during that fiscal year by members of
the retirement system unless, by actuarial determination, it is
satisfactorily established that a lesser percentage is needed. All
deductions and appropriations shall be payable to the treasurer of
the municipality and he or she shall pay the deductions and
appropriations into the retirement system. Except in municipalities
that
are subject to the 15 mill tax limitation as provided by in
section 6 of article IX of the state constitution of 1963, the
amount required by taxation to meet the appropriations to be made
by municipalities under this act shall be in addition to any tax
limitation imposed upon tax rates in those municipalities by
charter provisions or by state law subject to section 25 of article
IX of the state constitution of 1963.
(3) If, at the beginning or during any fiscal year, it has
been satisfactorily determined by the retirement board that the
accumulated funds of the retirement system plus the municipality's
contribution of 10% of the aggregate pay received during that
fiscal year by members of the retirement system plus members'
contributions of 5% of payroll, are insufficient to pay all
pensions and other benefits due and payable in that year out of
funds of the retirement system, then all pensions and other
benefits payable shall be prorated for the remainder of the fiscal
year by the retirement board.
(4) Any clerical, legal, actuarial, or medical expenses
required by the retirement board, or any other necessary expense
for the operation of the retirement system, shall be provided for
by the municipality or shall be paid from the investment income of
the retirement system, as determined by the governing body of the
municipality. The retirement board shall submit expenses
periodically to the governing body of the municipality. If use of
investment income to pay these expenses causes an actuarial
insufficiency in the assets of the retirement system used to pay
pensions, the insufficiency shall be made up by the municipality.
(5) All pensions allowed and payable to retired members and
beneficiaries under this act shall become obligations of and be
payable from the funds of the retirement system.
(6) The right of a person to a pension, to the return of
member contributions, to any optional benefits, or any other right
accrued or accruing to a member or beneficiary under this act and
the money belonging to the retirement system is subject to the
public employee retirement benefit protection act, 2002 PA 100, MCL
38.1681 to 38.1689.
(7) If any municipality under this act provides retirement
health care coverage, coverage provided and plans authorized shall
be provided and authorized in accordance with the Michigan health
benefits program act. Coverage provided and plans authorized in
accordance with the Michigan health benefits program act shall be
provided and authorized subject to section 21 of the Michigan
health benefits program act.
Enacting section 1. This amendatory act does not take effect
unless House Bill No. 5345 of the 95th Legislature is enacted into
law.