Bill Text: MI SB0167 | 2023-2024 | 102nd Legislature | Introduced

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Bill Title: Retirement: state employees; membership in the retirement system of certain law enforcement officers first hired after certain date; provide for, and allow for purchasing service credit for certain law enforcement officers' service under the state employees' retirement system. Amends 1986 PA 182 (MCL 38.1601 - 38.1674) by adding secs. 24c, 24d & 24e. TIE BAR WITH: SB 0166'23, SB 0165'23

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced) 2023-09-19 - Referred To Committee Of The Whole With Substitute (s-1) [SB0167 Detail]

Download: Michigan-2023-SB0167-Introduced.html

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SENATE BILL NO. 167

A bill to amend 1986 PA 182, entitled

"State police retirement act of 1986,"

(MCL 38.1601 to 38.1674) by adding sections 24c, 24d, and 24e.

the people of the state of michigan enact:

Sec. 24c. (1) Subject to subsection (5), the retirement system shall grant service under this act for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, to a member described in section 4(1)(b) if the member pays to the retirement system an amount equal to the actuarial value of the service as determined by the retirement system's actuary.

(2) Service under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, is not creditable toward retirement under this act if the member is or will be receiving a retirement allowance for the same service from another retirement system.

(3) A member described in subsection (1) is not required to do either of the following:

(a) Purchase any service credit under this section for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69.

(b) If the member does purchase service credit under this section for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, purchase all of the service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69.

(4) After May 31, 2025 at 5 p.m. Eastern Daylight Saving Time, a member is not eligible to initiate service credit purchase under this section. A member has 5 years after the date of initiating service credit purchase under this section to complete payment. If a member does not complete purchasing service credit within 5 years after the date of initiating the purchase, the member will not be granted service credit under this section. A member may purchase service under this section in 1 or more of the following manners:

(a) Tax-deferred payments, in a form and manner as determined by the retirement system.

(b) Additional payments, in a form and manner as determined by the retirement system.

(5) The retirement system shall establish a method to implement the payments under subsection (4).

(6) For purposes of vesting under section 42b, a member is granted service under this act for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, even if the member did not purchase service under this section.

Sec. 24d. (1) Subject to subsection (5), the retirement system shall grant service under this act for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, to a member described in section 4(1)(d) if the member pays to the retirement system an amount equal to the actuarial value of the service as determined by the retirement system's actuary.

(2) Service under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, is not creditable toward retirement under this act if the member is or will be receiving a retirement allowance for the same service from another retirement system.

(3) A member described in subsection (1) is not required to do either of the following:

(a) Purchase any service credit under this section for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69.

(b) If the member does purchase service credit under this section for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, purchase all of the service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69.

(4) After May 31, 2025 at 5 p.m. Eastern Daylight Saving Time, a member is not eligible to initiate service credit purchase under this section. A member has 5 years after the date of initiating service credit purchase under this section to complete payment. If a member does not complete purchasing service credit within 5 years after the date of initiating the purchase, the member will not be granted service credit under this section. A member may purchase service under this section in 1 or more of the following manners:

(a) Tax-deferred payments, in a form and manner as determined by the retirement system.

(b) Additional payments, in a form and manner as determined by the retirement system.

(5) The retirement system shall establish a method to implement the payments under subsection (4).

(6) For purposes of vesting under section 42b, a member is granted service under this act for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, even if the member did not purchase service under this section.

Sec. 24e. (1) Subject to subsection (5), the retirement system shall grant service under this act for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, to a member described in section 4(1)(f) if the member pays to the retirement system an amount equal to the actuarial value of the service as determined by the retirement system's actuary.

(2) Service under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, is not creditable toward retirement under this act if the member is or will be receiving a retirement allowance for the same service from another retirement system.

(3) A member described in subsection (1) is not required to do either of the following:

(a) Purchase any service credit under this section for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69.

(b) If the member does purchase service credit under this section for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, purchase all of the service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69.

(4) After May 31, 2025 at 5 p.m. Eastern Daylight Saving Time, a member is not eligible to initiate service credit purchase under this section. A member has 5 years after the date of initiating service credit purchase under this section to complete payment. If a member does not complete purchasing service credit within 5 years after the date of initiating the purchase, the member will not be granted service credit under this section. A member may purchase service under this section in 1 or more of the following manners:

(a) Tax-deferred payments, in a form and manner as determined by the retirement system.

(b) Additional payments, in a form and manner as determined by the retirement system.

(5) The retirement system shall establish a method to implement the payments under subsection (4).

(6) For purposes of vesting under section 42b, a member is granted service under this act for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, even if the member did not purchase service under this section.

Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law:

(a) Senate Bill No. 166.

 

(b) Senate Bill No. 165.