Bill Text: MI HB6512 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Retirement; state employees; early retirement option for certain legislative, judicial, executive branch, and unclassified civil service employees; provide for. Amends 1943 PA 240 (MCL 38.1 - 38.69) by adding sec. 19k.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-10-06 - Printed Bill Filed 09/30/2010 [HB6512 Detail]
Download: Michigan-2009-HB6512-Introduced.html
HOUSE BILL No. 6512
September 29, 2010, Introduced by Rep. Cushingberry and referred to the Committee on Government Operations.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
(MCL 38.1 to 38.69) by adding section 19k.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 19k. (1) Notwithstanding section 19, a member may retire
and receive a retirement allowance computed under this section if
the member meets all of the following requirements:
(a) On or before December 31, 2010, or on the effective date
of his or her retirement, whichever is earlier, the member's
combined age and length of credited service is equal to or greater
than 75 years, or, if the member has at least 20 years of service
credit, the member's combined age and length of credited service is
equal to or greater than 65 years.
(b) The member is an employee of the legislature, is an
employee of the office of governor, is an employee of the judicial
system, or is an unclassified employee within the state civil
service.
(c) The member was employed by this state or the legislature
for the 30-month period ending on December 1, 2010. A member who is
on layoff status from state employment is considered to have met
the employment requirement of this subdivision.
(d) The member executes and files a written application with
the retirement board, on or after December 1, 2010, but not later
than December 31, 2010, stating a date on or after January 1, 2011,
but not later than February 1, 2011, on which he or she desires to
retire. A member may withdraw a written application on or before
January 15, 2011. A written application submitted by a member and
not withdrawn on or before January 15, 2011 is irrevocable.
(e) The member is not employed in a covered position as
defined in section 45.
(f) The member is not a conservation officer as described in
section 48.
(2) If a member meets all of the requirements of subsection
(1) except the requirement in subsection (1)(c), the member may
retire and receive a retirement allowance equal to the member's
number of years and fraction of a year of credited service
multiplied by 1-1/2% of his or her final average compensation.
Except for the calculation provided in this subsection, the
member's retirement allowance is subject to section 20. The
member's retirement allowance is not subject to reduction pursuant
to section 19(2).
(3) Any amount that a member retiring under this section would
otherwise be entitled to receive in a lump sum at retirement on
account of accumulated sick leave shall be paid in 60 consecutive
equal monthly installments beginning on or after February 1, 2011.
Payments received under this subsection shall not be used to
purchase service credit under this act. These payments for
accumulated sick leave are to be paid from funds appropriated to
the appointing authority and not from funds of the retirement
system. These payments shall be considered taxable income under the
income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.532.
(4) Upon his or her retirement as provided in this section, a
member who did not make an election under section 50 to terminate
membership in Tier 1 and become a qualified participant in Tier 2
shall receive a retirement allowance equal to the member's number
of years and fraction of a year of credited service multiplied by
1-3/4% of his or her final average compensation. Except for the
calculation provided in this subsection, the member's retirement
allowance is subject to section 20. The member's retirement
allowance is not subject to reduction pursuant to section 19(2).
(5) Upon his or her retirement as provided in this section, a
former member who made an election under section 50 to terminate
membership in Tier 1 and become a qualified participant in Tier 2
shall receive a retirement allowance equal to the member's number
of years and fraction of a year of credited service multiplied by
1/4% of his or her final average compensation. Except for the
calculation provided in this subsection, the former member's
retirement allowance is subject to section 20. The former member's
retirement allowance is not subject to reduction pursuant to
section 19(2).
(6) For purposes of this section, an individual who elected to
terminate membership under section 50 and who, but for that
election, would otherwise be eligible for membership in Tier 1
under section 13, shall be considered a member of Tier 1 for the
limited purpose of receiving a retirement allowance calculated
under this section and paid by the retirement system.
(7) An employee who retires under this section shall not be
hired under contract by the state for a period of 2 years after the
date of separation.