Bill Text: MI HB4420 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Retirement; college employees; removal of community college employees from school retirement system; provide for. Amends secs. 6 & 7 of 1980 PA 300 (MCL 38.1306 & 38.1307).
Spectrum: Strong Partisan Bill (Republican 10-1)
Status: (Introduced - Dead) 2011-05-26 - Recommendation Concurred In [HB4420 Detail]
Download: Michigan-2011-HB4420-Introduced.html
HOUSE BILL No. 4420
March 15, 2011, Introduced by Reps. Walsh, Goike, Rutledge, Wayne Schmidt, Heise, Cotter, Potvin, Foster, Zorn, Horn and Shirkey and referred to the Committee on Oversight, Reform, and Ethics.
A bill to amend 1980 PA 300, entitled
"The public school employees retirement act of 1979,"
by amending sections 6 and 7 (MCL 38.1306 and 38.1307), as amended
by 1995 PA 272.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) "Original member" means a member employed in
Michigan public schools before July 1, 1945.
(2) "Out of system public education service" means service
performed in public education meeting 1 or more of the following
requirements:
(a) Performed in other states in the United States or its
territorial possessions.
(b) Performed at the university of Michigan, Michigan state
university, Wayne state university, Grand Valley state university,
Oakland university, or Saginaw Valley university.
(c) Service purchased before January 31, 1991 and performed in
a juvenile training school operated by a county in this state.
(d) Service purchased before January 31, 1991 and performed in
a
community mental health service program operated under former Act
No.
54 of the Public Acts of 1963 1963
PA 54 for the severely
mentally retarded in day care programs, day training programs, or
day care training programs that were transferred to an intermediate
school district by direction of the department of education.
(e) Service purchased before January 31, 1991 and performed as
an elementary or secondary teacher at a United States armed forces
military base in the United States or a foreign country.
(f) Service purchased before January 31, 1991 and performed as
a teacher or administrator of American nationals in overseas public
elementary or secondary schools operated by the United States
department of defense.
(g) Performed by a person who first becomes employed by an
institution of higher education described in section 4, 5, or 6 of
article VIII of the state constitution of 1963 on or after January
1, 1996.
(h) Performed by a person who first becomes employed by a
qualified tax supported community or junior college on or after
January 1, 2012.
(3) "Prior service" means service performed before July 1,
1945.
(4) Except as otherwise provided in this subsection, "public
school academy" means a public school academy established under
part
6a or 6b of the revised school code, of 1976, Act No. 451 of
the
Public Acts of 1976, being sections 380.501 to 380.507 and
380.511
to 380.518 of the Michigan Compiled Laws 1976 PA 451, MCL
380.501 to 380.507. Public school academy does not include any of
the following:
(a) A public school academy operated by a state public
university that is not subject to the optional retirement act of
1967,
Act No. 156 of the Public Acts of 1967, being sections 38.381
to
38.388 of the Michigan Compiled Laws 1967 PA 156, MCL 38.381 to
38.388.
(b) A public school academy corporation formed by a state
public
university that is not subject to Act No. 156 of the Public
Acts
of 1967 the optional
retirement act of 1967, 1967 PA 156, MCL
38.381 to 38.388.
(5) Except as otherwise provided in this subsection, "public
school employee" means an employee of a public local school
district, intermediate school district, public school academy, tax
supported community or junior college, eastern Michigan university,
central Michigan university, northern Michigan university, western
Michigan university, Ferris state university, Michigan
technological university, Lake Superior state university, or
district library as defined in section 69g if the conditions in
section 69g(1) are met for that employee. Service at Michigan
technological university shall be creditable only if the amount of
the accumulated contributions in the state employees' retirement
system
created by the state employees' retirement act, Act No. 240
of
the Public Acts of 1943, being sections 38.1 to 38.48 of the
Michigan
Compiled Laws 1943 PA 240,
MCL 38.1 to 38.69, for service
is paid to the retirement system. Service at Ferris state
university shall be creditable as prior service or membership
service only if the employee was employed at Ferris state
university on a full-time basis for 2 or more years after May 17,
1949. Until January 1, 1988, public school employee also includes a
person holding a Michigan teacher certificate and serving as an
employee of the Michigan high school athletic association, other
than a person whose effective date of employment with the Michigan
high school athletic association is on or after December 31, 1986.
Public school employee includes a public school employee on an
approved leave of absence. Public school employee does not include
a person who first becomes employed by a university described in
this subsection on or after January 1, 1996. Public school employee
does not include a person who first becomes employed by a qualified
tax supported community or junior college on or after January 1,
2012.
(6) "Qualified tax supported community or junior college"
means a tax supported community or junior college that has
submitted an appropriate resolution to withdraw from the retirement
system to the retirement board no later than December 1, 2011.
Sec. 7. (1) "Refund beneficiary" means 1 or more persons whom
the member or former member nominates in writing and files with the
retirement system for the purpose of being paid accumulated
contributions in the event of the death of the member or former
member. If a valid nomination is not on file, the retirement board
shall pay the accumulated contributions to the legal representative
of the deceased member or deceased former member, if any, or to the
estate of the deceased member or deceased former member.
(2) "Regular interest" means interest at 1 or more rates per
annum determined by the retirement board and compounded annually.
(3) Except as otherwise provided in this subsection,
"reporting unit" means a public school district, intermediate
school district, public school academy, tax supported community or
junior college, or university, or an agency having employees on its
payroll who are members of this retirement system. The reporting
unit shall be the employer for purposes of this act. On and after
January 1, 1996, reporting unit does not include a university,
except to the extent that university has employees on its payroll
who are members of this retirement system. On and after January 1,
2012, reporting unit does not include a qualified tax supported
community or junior college except to the extent that the community
or junior college has employees on its payroll who are members of
the system.
(4) "Retirant" means a member who retires with a retirement
allowance payable from reserves of the retirement system.
(5) "Retirement allowance" means a payment for life or a
temporary period provided for in this act to which a retirant,
retirement allowance beneficiary, or refund beneficiary is
entitled.
(6) "Retirement allowance beneficiary" means a person who is
being paid or has entitlement to the payment of a retirement
allowance in the event of the death of a member, deferred member,
or retirant.
(7) "Retirement board" means the board provided to administer
this retirement system.
(8) "Retirement system" means the Michigan public school
employees' retirement system provided for in this act.
