September 29, 2010, Introduced by Reps. Nathan, Meadows, Slavens, Johnson, Jackson, Durhal, Cushingberry, Melton, Corriveau, Constan, Lipton and Rick Jones and referred to the Committee on Government Operations.
A bill to amend 1992 PA 234, entitled
"The judges retirement act of 1992,"
by amending section 105 (MCL 38.2105), as amended by 2008 PA 514.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 105. (1) Beginning January 1, 2002, except as otherwise
provided in this subsection, "eligible retirement plan" means 1 or
more of the following:
(a) An individual retirement account described in section
408(a) of the internal revenue code, 26 USC 408.
(b) An individual retirement annuity described in section
408(b) of the internal revenue code, 26 USC 408.
(c) An annuity plan described in section 403(a) of the
internal revenue code, 26 USC 403.
(d) A qualified trust described in section 401(a) of the
internal revenue code, 26 USC 401.
(e) An annuity contract described in section 403(b) of the
internal revenue code, 26 USC 403.
(f) An eligible plan under section 457(b) of the internal
revenue code, 26 USC 457, that is maintained by a state, political
subdivision of a state, or an agency or instrumentality of a state
or political subdivision of a state and that separately accounts
for amounts transferred into such eligible plan under section
457(b) of the internal revenue code, 26 USC 457, from this
retirement system, that accepts the distributee's eligible rollover
distribution.
(g) Beginning January 1, 2008, a Roth individual retirement
account as described in section 408A of the internal revenue code,
26 USC 408A, subject to the rules that apply to rollovers from a
traditional individual retirement account to a Roth individual
retirement account.
(2) Beginning January 1, 2007, "eligible rollover
distribution" means a distribution of all or any portion of the
balance to the credit of the distributee. Eligible rollover
distribution does not include any of the following:
(a) A distribution made for the life or life expectancy of the
distributee or the joint lives or joint life expectancies of the
distributee and the distributee's designated beneficiary.
(b) A distribution for a specified period of 10 years or more.
(c) A distribution to the extent that the distribution is
required under section 401(a)(9) of the internal revenue code, 26
USC 401.
(d) The portion of any distribution that is not includable in
federal gross income, except to the extent such portion of the
distribution is paid to either of the following:
(i) An individual retirement account or annuity described in
section 408(a) or 408(b) of the internal revenue code, 26 USC 408.
(ii) A qualified plan described in section 401(a) of the
internal revenue code, 26 USC 401, or an annuity contract described
in section 403(b) of the internal revenue code, 26 USC 403, and the
plan providers agree to separately account for the amounts paid,
including any portion of the distribution that is includable in
federal gross income, and the portion of the distribution which is
not so includable.
(3) "Executive secretary" means the executive secretary of the
retirement system as provided in section 205.
(4) Except as otherwise provided in this subsection, "final
compensation" means the annual rate of compensation for the
calendar year of retirement. For a member who retires on January 1,
final compensation means the annual rate of compensation for the
calendar year or years immediately preceding the date of
retirement, whichever is applicable. Final compensation does not
include an amount that exceeds the maximum salary set forth for
that particular member or vested former member in the revised
judicature act, if applicable. For a member who is a judge and who
performs judicial duties for a limited period or a specific
assignment as authorized by the supreme court pursuant to section
23 of article VI of the state constitution of 1963, and who retires
before October 1, 2010, final compensation means the annual rate of
compensation the member was being paid at the termination of his or
her tenure in office as an elected judge. For a member who is a
judge and who retires on or after October 1, 2010, final
compensation means the average of the highest rate of compensation
for a period of 3 consecutive years of employment.
(5) "Former elected official" means a member who held a state
elective office before membership in this retirement system, the
former judges retirement system, or the former probate judges
retirement system.
(6) "Former judges retirement system" means the state of
Michigan judges' retirement system created by former 1951 PA 198.
(7) "Former probate judges retirement system" means the state
of Michigan probate judges retirement system created by former 1954
PA 165.