HB-6477, As Passed House, December 21, 2018
HB-6477, As Passed Senate, December 20, 2018
November 7, 2018, Introduced by Rep. Albert and referred to the Committee on Financial Liability Reform.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 13 (MCL 38.13), as amended by 2002 PA 743.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 13. (1) Except as otherwise provided in this act,
membership in the retirement system consists of state employees
occupying permanent positions in the state civil service. All state
employees except those specifically excluded by law and those who
are members or eligible to be members of other statutory retirement
systems
in this state, shall must become members of the retirement
system. The employees may use service previously performed as an
employee of this state in meeting the service requirements for the
retirement allowances and death benefits provided by the retirement
system.
However, the prior service shall must not be used in
computing the amount of a retirement allowance to be paid by the
retirement system unless the employee pays to the retirement system
the amount the employee's contributions would have been had the
employee
become a member immediately upon on employment by the
state with interest compounded annually at the regular rate from a
date 1 year after the date of employment by this state to the date
of
payment. A person An
individual who draws compensation as a
state employee of a political subdivision of this state is eligible
for
the benefits provided by this act to the extent of the person's
individual's compensation paid by this state. An individual who
meets the requirements of section 44a is a member of the retirement
system.
(2) Elected or appointed state officials may elect not to
become or continue as members of the retirement system by filing
written notice with the retirement board. An appointed state
official who is a member of a state board, commission, or council
and who receives a per diem rate in his or her capacity as a member
of the board, commission, or council is excluded from membership in
the retirement system for the service rendered in his or her
capacity as a member of the board, commission, or council. Service
performed by an elected or appointed official during the time the
official
elects not to participate shall must
not be used in
meeting the service requirement or in computing the amount of
retirement allowance to be paid by the retirement system. A member
who
elects not to participate shall must
be refunded all
contributions made before the election.
(3) Membership in the retirement system does not include any
of the following:
(a) A person who is a contributing member in the public school
employees' retirement system provided for in the public school
employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to
38.1408.38.1437.
(b) A person who is a contributing member in the Michigan
judges retirement system provided for in the judges retirement act
of 1992, 1992 PA 234, MCL 38.2101 to 38.2670.
(c) A person who comes within the Michigan state police
retirement system provided for in the state police retirement act
of
1986, 1986 PA 182, MCL 38.1601 to 38.1648.38.1675.
(d) An individual who is first employed and entered upon the
payroll on or after March 31, 1997 for employment for which the
individual would have been eligible for membership under this
section before March 31, 1997. An individual described in this
subdivision is eligible to be a qualified participant in Tier 2
subject to sections 50 to 69.
(e) Except as provided in section 19g, an individual who
elects to terminate membership under section 50 and who, but for
that election, would otherwise be eligible for membership in Tier 1
under this section.
(f) A retirant who again becomes employed by the state and is
entered upon the payroll on or after December 1, 2002, for
employment for which the retirant would have been eligible for
membership under this section before December 1, 2002. A retirant
described
in this subdivision shall be is
a qualified participant
in Tier 2 subject to sections 50 to 69.
(4)
A person An individual who is hired in state classified or
unclassified service after June 30, 1974, who is first employed and
entered upon the payroll before March 31, 1997, and who possesses a
Michigan
teaching certificate shall be is
a member of this
retirement system. After June 30, 1974, but before March 31, 1997,
a
person an individual who returns to state employment in the
classified or unclassified service who previously was a
contributing member of the Michigan public school employees'
retirement
system shall have the person's individual's
accumulated
contributions and service transferred to this retirement system, or
having withdrawn the contributions, may pay into the retirement
system the amount withdrawn together with regular interest and have
credit restored as provided for in section 16. On and after March
31, 1997, an individual described in this subsection who returns to
state service shall make an irrevocable election to remain in Tier
1 or to become a qualified participant of Tier 2 in the manner
prescribed in section 50.
(5)
A person, An individual, not regularly employed by this
state, who is employed through participation in 1 or more of the
following programs, shall not be a member of the retirement system
and
shall must not receive service credit for the employment:
(a) A program authorized, undertaken, and financed pursuant to
the comprehensive employment and training act of 1973, former
Public Law 93-203, 87 Stat. 839.
(b)
A summer youth employment program established pursuant to
under the Michigan youth corps act, 1983 PA 69, MCL 409.221 to
409.229.
(c) A program established pursuant to the job training
partnership act, Public Law 97-300, 96 Stat. 1322.
(d) A program established pursuant to the Michigan opportunity
and skills training program, first established under sections 12 to
23 of 1983 PA 259.
(e) A program established pursuant to the Michigan community
service corps program, first established under sections 25 to 35 of
1983 PA 259.
(6)
A person, An individual, not regularly employed by this
state, who is employed to administer a program described in
subsection
(5) shall is not be a member of the retirement system
and
shall must not receive service credit for the employment.
(7)
If a person an individual described in subsection (5)(a)
later becomes a member of this retirement system within 12 months
after the date of termination as a participant in a transitional
public employment program, service credit shall be given for
employment
which that is excluded in subsection (5) for purposes of
determining
a retirement allowance upon on
the payment by the
person's
individual's employer under subsection (5) from funds
provided under the comprehensive employment and training act of
1973, former Public Law 93-203, 87 Stat. 839, as funds permit, to
the retirement system of the contributions, plus regular interest,
the employer would have paid had the employment been rendered in a
position
covered by this act. During the person's individual's
employment in the transitional public employment program, the
person's
individual's employer shall place in reserve a reasonable
but not necessarily an actuarially determined amount equal to the
contributions that the employer would have paid to the retirement
system for those employees in the transitional public employment
program as if they were members under this act, but only for that
number of employees that the employer determined would move from
the transitional public employment program into positions covered
by this act. If the funds provided under the comprehensive
employment and training act of 1973, former Public Law 93-203, 87
Stat. 839, are insufficient, the remainder of the employer
contributions
shall must be paid by the person's individual's
current employer.
(8)
For purposes of section 19g, a former member shall be is
considered
a member and shall be is considered to have satisfied
the requirements of section 19g(1)(c) and (2)(c) if the former
member was employed by the department formerly known as the
department of mental health on January 1, 1996 and went on layoff
status before January 1, 1997.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6475 (request no.
05259'18) of the 99th Legislature is enacted into law.