Bill Text: MI HB6024 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Retirement; public school employees; criteria for final average compensation for public school employees' pensions; clarify. Amends sec. 3a of 1980 PA 300 (MCL 38.1303a).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-04-13 - Printed Bill Filed 03/26/2010 [HB6024 Detail]
Download: Michigan-2009-HB6024-Introduced.html
HOUSE BILL No. 6024
March 25, 2010, Introduced by Rep. Mayes and referred to the Committee on Education.
A bill to amend 1980 PA 300, entitled
"The public school employees retirement act of 1979,"
by amending section 3a (MCL 38.1303a), as added by 1996 PA 268.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3a. (1) Except as otherwise provided in this act,
"compensation" means the remuneration earned by a member for
service performed as a public school employee.
(2) Compensation includes salary and wages and all of the
following:
(a) Remuneration earned for all services performed as a public
school employee including, but not limited to, teaching, coaching,
and participation in extracurricular activities.
(b)
On Through September 30, 2010, on a current basis,
investments made in a tax sheltered annuity for a public school
employee as remuneration for service under this act. The
remuneration shall be valued at the amount of money actually paid
into the annuity. On and after October 1, 2010, compensation does
not include the value of investments described in this subdivision
or the value of any annuity or annuity payments received by the
member.
(c) All amounts deducted from the pay of a public school
employee, including amounts deducted pursuant to the member
investment plan.
(d) Longevity pay.
(e) Overtime pay for service performed outside of what is
considered normal working hours for the affected employee.
(f) Pay for vacation, holiday, and sick leave while absent
from work. As used in this subdivision, "sick leave" includes
weekly worker's disability compensation payments received for
personal injury in the employ of and while employed by a reporting
unit.
(g) Items of deferred compensation, exclusive of employer
contributions to the retirement system.
(h) Merit pay as established by a reporting unit for the
purpose of rewarding achievement of specific performance
objectives.
(3) Compensation does not include any of the following:
(a) Payments for unused sick or annual leave.
(b) Bonus payments.
(c) Payments for hospitalization insurance and life insurance
premiums.
(d) Other fringe benefits paid by and from the funds of
employers of public school employees.
(e) Remuneration paid for the specific purpose of increasing
the final average compensation.
(f) Compensation in excess of an amount over the level of
compensation reported for the preceding year except increases
provided by the normal salary schedule for the current job
classification. In cases where the current job classification in
the reporting unit has less than 3 members, the normal salary
schedule for the most nearly identical job classification in the
reporting unit or in similar reporting units shall be used.
(4) The retirement board shall require a sworn affidavit from
the member that final compensation does not include remuneration
paid either directly or indirectly for actual or anticipated
expenses.
(5) Based upon information and documentation provided by the
member, the retirement board shall determine both of the following:
(a) Whether any form of remuneration paid to a member is
identified in this section.
(b) Whether any form of remuneration that is not identified in
this section should be considered compensation reportable to the
retirement system under this section.
(6) In any case where a petitioner seeks to have remuneration
included in compensation reportable to the retirement system, the
petitioner shall have the burden of proof.
