April 30, 2019, Introduced by Reps. Steven Johnson, Albert and Lower and referred to the Committee on Appropriations.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending sections 20g, 38, 49, and 68b (MCL 38.20g, 38.38,
38.49, and 38.68b), section 20g as amended by 1987 PA 241, section
38 as amended and section 68b as added by 2011 PA 264, and section
49 as amended by 2018 PA 336.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 20g. (1) After the end of each state fiscal year, the
department of technology, management, and budget shall determine
the rate and discount rate of investment return earned on
retirement
system assets during the fiscal year, based upon on
methods established by the retirement board.
(2) At the end of each state fiscal year, the retirement
system's actuary shall determine the present value of retirement
allowances to be paid after the end of the fiscal year to retirants
and retirement allowance beneficiaries in receipt of retirement
allowances at the end of the fiscal period. The assumed interest
rate
and discount rate used in the determination shall be 8% must
not
exceed 6% per year, compounded
annually.
(3) The distribution income at the end of each state fiscal
year
shall must be equal to the product of the present value of
retirement allowances determined in subsection (2) at the end of
the previous fiscal year times the positive excess, if any, of the
rate of investment return determined in subsection (1) exceeding
8%.
The distribution income calculated pursuant to this subsection
at
the end of the fiscal years 1984-85 and 1985-86 shall be reduced
by
the costs of postretirement adjustments paid during the fiscal
year
pursuant to sections 20b, 20c, 20e, and 20f.the assumed
interest rate used under subsection (1).
(4) After the end of each state fiscal year, each retirant and
retirement allowance beneficiary in receipt of a retirement
allowance at the end of the fiscal year, and whose effective date
of retirement allowance preceded the beginning of that fiscal year,
shall
must be credited with 1 distribution unit for each full
year
between the effective date of retirement and the end of the fiscal
year and 1 distribution unit for each full year of service credit
in force on the effective date of retirement. Distribution units
shall
must not accumulate from 1 year to the next year.
(5) The distribution amount for an individual retirant or
retirement
allowance beneficiary shall must
be equal to the product
of the distribution income determined in subsection (3) times the
individual's number of distribution units determined in subsection
(4) divided by the total number of distribution units for all
eligible retirants and retirement allowance beneficiaries in
receipt of retirement allowances at the end of the fiscal year. The
distribution amount for an individual retirant or retirement
allowance beneficiary of a retirant whose retirement allowance
effective
date is on or after October 1, September 30, 1987 is
zero.
(6) The distribution amount for each retirant or retirement
allowance
beneficiary shall be is payable in the form of a
supplemental
payment prior to before the seventh month after the
end of the state fiscal year. Except as provided in subsection (9),
a
distribution amount shall is
not be payable after March 31,
1988.
If a retirant dies before receipt of the distribution amount, the
payment
shall must be made to the retirant's retirement allowance
beneficiary, if any. If both the retirant and the retirement
allowance beneficiary die before receipt of the distribution
amount,
no a payment shall must not be made.
(7)
Each The retirement system
shall increase each retirement
allowance
shall be increased each October 1 beginning with the
later
of October 1, 1988 or the first
October 1 which that is at
least 12 months after the retirement allowance effective date. The
amount
of the annual increase shall under
this subsection must be
equal to 3% of the retirement allowance that would be payable as of
the date of the increase without application of this subsection,
except that if the member made the election permitted under section
20(2),
the increase shall must be based on the amount of retirement
allowance that would have been paid without application of section
20(2).
The annual increase shall must
not exceed $300.00.
(8) After the end of each state fiscal year, the cumulative
increase
amount shall must be computed for each retirant or
retirement allowance beneficiary. The cumulative increase amount
shall
must be equal to the difference between the total
retirement
allowance paid during the state fiscal year and the retirement
allowance that would have been payable without application of
subsection (7) and section 20h. The cumulative increase amount for
any retirant or retirement allowance beneficiary whose retirement
allowance
effective date is on or after October 1, September 30,
1987 is zero.
(9) In March of each year, beginning in March, 1989, the
retirement system shall pay each retirant or retirement allowance
beneficiary, shall
be paid, in a single supplemental payment, the
excess, if any, of the distribution amount over the cumulative
increase amount for the previous state fiscal year. If a retirant
dies before receipt of a supplemental payment, the retirement
system
shall pay the supplemental payment shall
be made to the
retirant's retirement allowance beneficiary, if any. If both the
retirant and the retirement allowance beneficiary die before
receipt
of a supplemental payment, no payment shall be made.the
retirement system shall not make a supplemental payment.
Sec.
38. (1) The annual level percent of payroll dollar
contribution rate to finance the benefits provided under this act
shall
must be determined by actuarial valuation pursuant to under
subsections
(2) and (3), upon on the basis of the risk assumptions
adopted by the retirement board with approval of the department of
technology, management, and budget, and in consultation with the
investment counsel and the actuary. An annual actuarial valuation
shall
must be made of the retirement system in order to
determine
the actuarial condition of the retirement system and the required
contribution to the retirement system. The actuary shall report to
the legislature by April 15 of each year on the actuarial condition
of the retirement system as of the end of the previous fiscal year
and on the projections of state contributions for the next fiscal
year. The actuary shall certify in the report that the techniques
and methodologies used are generally accepted within the actuarial
profession and that the assumptions and cost estimates used fall
within the range of reasonable and prudent assumptions and cost
estimates. An annual actuarial gain-loss experience study of the
retirement
system shall must be made in order to determine the
financial effect of variations of actual retirement system
experience from projected experience.
(2) The contribution rate for monthly benefits payable in the
event of the death of a member before retirement or the disability
of
a member shall must be computed using an individual projected
benefit entry age normal cost method of valuation.
(3) Except as otherwise provided in this subsection, the
contribution
rate for benefits shall must
be computed using an
individual projected benefit entry age normal cost method of
valuation.
For the 1995-96 state fiscal year ending September 30,
1996 and for each subsequent fiscal year in which the actuarial
accrued liability for health benefits is less than 100% funded, the
contribution
rate for benefits provided under section 20d shall
must be computed using a cash disbursement method with the payment
schedule
for the employer being based upon on and applied to the
combined payrolls of the employees who are members and qualified
participants. Beginning in the fiscal year after the fiscal year in
which the actuarial accrued liability for health benefits under
section 20d is at least 100% funded by the health advance funding
subaccount created under section 11(9), and continuing for each
subsequent fiscal year, the contribution rate for health benefits
provided
under section 20d shall must
be computed using an
individual projected benefit entry age normal cost method of
valuation. The contribution rate for service that may be rendered
in
the current year, the normal cost contribution rate, shall must
be equal to the aggregate amount of individual entry age normal
costs divided by 1% of the aggregate amount of active members'
valuation compensation. The unfunded actuarial accrued liability
shall
must be equal to the actuarial present value of benefits
reduced by the actuarial present value of future normal cost
contributions and the actuarial value of assets on the valuation
date.
Except as otherwise provided in this subsection, subsection
(1),
the unfunded actuarial accrued
liability shall must be
amortized in accordance with generally accepted governmental
accounting standards over a period equal to or less than 40 years,
with
the payment schedule for the employer being based upon on and
applied to the combined payrolls of the employees who are members
and qualified participants. Beginning with the state fiscal year
ending September 30, 2021, and for each subsequent fiscal year, the
retirement system shall use layered amortization. As used in this
subsection, "layered amortization" means a fixed and closed period
that separately layers the different components to be amortized
over a fixed period not to exceed 10 years, as it emerges. The
amortization period for layered amortization must use a level
dollar amortization method.
(4) The legislature annually shall appropriate to the
retirement
system the amount determined pursuant to under
subsections (2) and (3). The state treasurer shall transfer monthly
to the retirement system an amount equal to the product of the
contribution rates determined in subsections (2) and (3) times the
aggregate amount of active member or qualified participant
compensation, as appropriate, paid during that month. Not later
than
60 days after the termination end
of each state fiscal year,
the executive secretary of the retirement board shall certify to
the director of the department of technology, management, and
budget the actual aggregate compensations paid to active members
and qualified participants during the preceding state fiscal year.
Upon
On receipt of that certification, the director of the
department
of technology, management, and budget shall compute the
any
difference ,
if any, between actual state contributions
received during the preceding state fiscal year and the product of
the contribution rates determined in subsections (2) and (3) times
the aggregate compensations paid to active members or qualified
participants, as appropriate, during the preceding state fiscal
year.
Except as otherwise provided in subsection (5), the any
difference ,
if any, shall must be submitted in the executive
budget
to the legislature for appropriation in the next succeeding
state fiscal year. This subsection does not apply for those fiscal
years in which a deposit occurs pursuant to subsection (6).
(5)
For Except as otherwise
provided in this subsection, for
any differences occurring in fiscal years beginning on or after
October
1, 1991, a minimum of 20% of the any difference between the
estimated and the actual aggregate compensation and the estimated
and
the actual contribution rate described in subsection (4) ,
if
any,
may be submitted in the executive
budget to the legislature
for
appropriation in the next succeeding state fiscal year and a
minimum
of 25% of the remaining difference shall must be submitted
in the executive budget to the legislature for appropriation in
each of the following 4 state fiscal years, or until 100% of the
remaining difference is submitted, whichever first occurs.
Beginning in the state fiscal year ending September 30, 2022 and
each state fiscal year thereafter, not less than 60 days after the
end of the fiscal year, the office of retirement services shall
certify to the department the difference between the estimated and
the actual aggregate compensation and the estimated and the actual
contribution rate described in subsection (4), if any. The
legislature shall appropriate the amount certified under this
subsection
in the next fiscal year. In addition,
interest shall
must be included for each year that a portion of the remaining
difference
is carried forward. The interest rate shall must equal
the actuarially assumed rate of investment return for the state
fiscal year in which payment is made. This subsection does not
apply for those fiscal years in which a deposit occurs pursuant to
subsection (6).
(6) For each fiscal year that begins on or after October 1,
2001,
if the actuarial valuation prepared pursuant to under this
section for each fiscal year demonstrates that as of the beginning
of a fiscal year, and after all credits and transfers required by
this act for the previous fiscal year have been made, the sum of
the actuarial value of assets and the actuarial present value of
future normal cost contributions exceeds the actuarial present
value of benefits, the annual level percent of payroll contribution
rate
as determined pursuant to under
subsections (1), (2), and (3)
may be deposited into the health advance funding subaccount created
under section 11(9).
(7) Notwithstanding any other provision of this act, if the
retirement board establishes an arrangement and fund as described
in section 6 of the public employee retirement benefit protection
act, 2002 PA 100, MCL 38.1686, the benefits that are required to be
paid
from that fund shall must be paid from a portion of the
employer contributions described in this section or other eligible
funds. The retirement board shall determine the amount of the
employer
contributions or other eligible funds that shall must be
allocated to that fund and deposit that amount in that fund before
it deposits any remaining employer contributions or other eligible
funds in the pension fund.
Sec. 49. (1) This section is enacted under section 401(a) of
the internal revenue code, 26 USC 401, which imposes certain
administrative requirements and benefit limitations for qualified
governmental plans. This state intends that the retirement system
be a qualified pension plan created in trust under section 401 of
the internal revenue code, 26 USC 401, and that the trust be an
organization exempt from taxation under section 501 of the internal
revenue code, 26 USC 501. The department shall administer the
retirement system to fulfill this intent.
(2)
The retirement system shall must
be administered in
compliance with section 415 of the internal revenue code, 26 USC
415,
and regulations under that section that are applicable apply
to governmental plans and, beginning January 1, 2010, applicable
provisions of the final regulations issued by the Internal Revenue
Service on April 5, 2007. Employer-financed benefits provided by
the retirement system under this act must not exceed the applicable
limitations set forth in section 415 of the internal revenue code,
26 USC 415, as adjusted by the commissioner of internal revenue
under section 415(d) of the internal revenue code, 26 USC 415, to
reflect cost-of-living increases, and the retirement system shall
adjust the benefits, including benefits payable to retirants and
retirement allowance beneficiaries, subject to the limitation each
calendar year to conform with the adjusted limitation. For purposes
of section 415(b) of the internal revenue code, 26 USC 415, the
applicable limitation applies to aggregated benefits received from
all qualified pension plans for which the office of retirement
services coordinates administration of that limitation. If there is
a conflict between this section and another section of this act,
this section prevails.
(3) The assets of the retirement system must be held in trust
and invested for the sole purpose of meeting the legitimate
obligations of the retirement system and must not be used for any
other purpose. The assets must not be used for or diverted to a
purpose other than for the exclusive benefit of the members, vested
former members, retirants, and retirement allowance beneficiaries
before satisfaction of all retirement system liabilities.
(4) The retirement system shall return post-tax member
contributions made by a member and received by the retirement
system to a member on retirement, under Internal Revenue Service
regulations and approved Internal Revenue Service exclusion ratio
tables.
(5) The required beginning date for retirement allowances and
other distributions must not be later than April 1 of the calendar
year following the calendar year in which the employee attains age
70-1/2 or April 1 of the calendar year following the calendar year
in which the employee retires. The required minimum distribution
requirements imposed by section 401(a)(9) of the internal revenue
code, 26 USC 401, apply to this act and must be administered in
accordance with a reasonable and good faith interpretation of the
required minimum distribution requirements for all years to which
the required minimum distribution requirements apply to the
retirement system.
(6) If the retirement system is terminated, the interest of
the members, vested former members, retirants, and retirement
allowance beneficiaries in the retirement system is nonforfeitable
to the extent funded as described in section 411(d)(3) of the
internal revenue code, 26 USC 411, and related Internal Revenue
Service regulations applicable to governmental plans.
(7) Notwithstanding any other provision of this act to the
contrary that would limit a distributee's election under this act,
a distributee may elect, at the time and in the manner prescribed
by the retirement board, to have any portion of an eligible
rollover distribution paid directly to an eligible retirement plan
specified by the distributee in a direct rollover. This subsection
applies to distributions made after December 31, 1992. Beginning
October 1, 2010, a nonspouse beneficiary may elect to have any
portion of an amount payable under this act that is an eligible
rollover distribution treated as a direct rollover that will be
paid in a direct trustee-to-trustee transfer to an individual
retirement account or individual retirement annuity described in
section 408(a) or (b) of the internal revenue code, 26 USC 408,
that is established for the purpose of receiving a distribution on
behalf of the beneficiary and that will be treated as an inherited
individual retirement account or individual retirement annuity
under section 402(c)(11) of the internal revenue code, 26 USC 402.
(8)
For Except as otherwise
provided in this subsection, for
purposes of determining actuarial equivalent retirement allowances
under sections 31(1) and 20(2), the actuarially assumed interest
rate must be determined by the director of the department of
technology, management, and budget and the retirement board in
consultation with the actuary using the mortality tables adopted by
the department of technology, management, and budget and the
retirement board. Beginning with the state fiscal year ending
September 30, 2021 and for each subsequent state fiscal year, for
purposes of determining actuarial equivalent retirement allowances
under sections 31(1) and 20(2), the actuarially assumed interest
rate and discount rate must not exceed 6% using the most recent
mortality assumptions provided by the Actuarial Standards Board and
adopted as risk assumptions by the actuary.
(9) Notwithstanding any other provision of this act to the
contrary, the compensation of a member of the retirement system
must be taken into account for any year under the retirement system
only to the extent that it does not exceed the compensation limit
established in section 401(a)(17) of the internal revenue code, 26
USC 401, as adjusted by the commissioner of internal revenue. This
subsection applies to an individual who first becomes a member of
the retirement system after September 30, 1996.
(10) Notwithstanding any other provision of this act to the
contrary, contributions, benefits, and service credit with respect
to qualified military service must be provided under the retirement
system in accordance with section 414(u) of the internal revenue
code, 26 USC 414. This subsection applies to all qualified military
service after December 11, 1994. Beginning on January 1, 2007, in
accordance with section 401(a)(37) of the internal revenue code, 26
USC 401, if a member dies while performing qualified military
service for purposes of determining death benefits payable under
this act, the member is treated as having resumed and then
terminated employment because of death.
Sec. 68b. (1) A qualified participant or former qualified
participant
who was first employed and entered upon on the payroll
of
his or her employer on or after January 1, 2012 December 31,
2011
or who made an election under
subsection (5) or (6) shall will
not receive any health insurance coverage premium from this state
under section 68. In lieu of any health insurance coverage premium
that might have been paid by this state under section 68, a
qualified participant's employer shall make a matching contribution
up to 2% of the qualified participant's compensation to an
appropriate tax-deferred account for each qualified participant who
was
first employed and entered upon on
the payroll of his or her
employer
on or after January 1, 2012 December 31, 2011 or who
made
an election under subsection (5) or (6). A matching contribution
under
this subsection shall must
not be used as the basis for a
loan from an employee's Tier 2 or tax-deferred account.
(2) A qualified participant who was first employed and entered
upon
on the payroll of his or her employer on or after
January 1,
2012
December 31, 2011 or who made an election under subsection (5)
or (6) may make a contribution up to 2% of the qualified
participant's compensation to an appropriate tax-deferred account.
(3) Except as otherwise provided in this subsection, a
qualified participant is vested in contributions made to his or her
tax-deferred account under subsections (1) and (2) according to the
vesting provisions under section 64(1). A qualified participant who
is eligible for health insurance coverage under section 67a(4) or
(8) is not vested in any employer contributions under subsection
(1) and forfeits the contributions and earnings on the
contributions.
(4)
The contributions described in this section shall must
begin with the first payday after the qualified participant is
employed
or on or after April 1, March
31, 2012 for a qualified
participant who makes an election under subsection (5) or (6) and
end
upon on his or her termination of employment.
(5) Except as otherwise provided in this subsection, beginning
January 3, 2012 and ending at 5 p.m. eastern standard time on March
2, 2012, the retirement system shall permit each qualified
participant who is a qualified participant on December 31, 2011 to
make an election to opt out of the health insurance coverage
premium that would have been paid by this state under section 68
and opt in to the tax-deferred account provisions of this section
effective April 1, 2012. A qualified participant who is a qualified
participant on December 31, 2011 and who does not make the election
under this subsection continues to be eligible for the health
insurance coverage premium paid by this state under section 68 and
is not eligible for the tax-deferred account provisions of this
section. A qualified participant who is a qualified participant on
December 31, 2011 and who makes the election under this subsection
shall
cease ceases accruing years of service credit for purposes of
calculating a portion of the health insurance coverage premium that
would have been paid by this state under section 68 as if that
section continued to apply and for the portion of the amount to be
calculated under subsection (7) for crediting to a tax-deferred
account. This subsection does not apply to any of the following:
(a) A former member who made an election to become a qualified
participant under section 50.
(b) A member who did not make the election under section 50a.
(c) A member who made the election under section 50a(1) and
the designation under section 50a(2), who has attained 30 years of
credited service, and who remains employed by this state.
(d) A former qualified participant who was a former qualified
participant on December 31, 2011.
(6) Except as otherwise provided in this subsection, a former
qualified participant who has 10 or more years of service on or
before
December 31, 2011 and who is reemployed by this state on or
after
January 1, 2012 December
31, 2011 and before January 1, 2014
may make an election under this subsection and receive an amount,
if any, as determined under this section. Beginning on the date of
the former qualified participant's reemployment and ending 60 days
after the former qualified participant's first pay date, the
retirement system shall permit the former qualified participant to
make an election to opt out of the health insurance coverage
premium that would have been paid by this state under section 68
and opt in to the tax-deferred account provisions of this section
effective on or after the former qualified participant's date of
reemployment. If the former qualified participant does not make the
election under this subsection, he or she continues to be eligible
for the health insurance coverage premium paid by this state under
section 68 and is not eligible for the tax-deferred account
provisions of this section. A former qualified participant who
makes the election under this subsection ceases to accrue years of
service credit for purposes of calculating a portion of the health
insurance coverage premium that would have been paid by this state
under section 68 as if that section continued to apply and for
purposes of calculating the portion of the amount to be credited to
a tax-deferred account under subsection (7). This subsection does
not apply to any of the following:
(a) A former member who made an election to become a qualified
participant under section 50.
(b) A member who did not make the election under section 50a.
(c) A member who made the election under section 50a(1) and
the designation under section 50a(2), who has attained 30 years of
credited service, and who remains employed by this state.
(7) Except as otherwise provided in this section, in lieu of
any health insurance coverage premium that might have been paid by
this state under section 68, the retirement system shall calculate
an amount to be credited at termination to an appropriate tax-
deferred account for each qualified participant who makes an
election under subsection (5) or (6). The amount described in this
subsection
shall must be an amount calculated to approximate the
actuarial present value as of 12 midnight March 31, 2012 of the
projected retirant health benefits based on the current benefit
structure under section 68 and the qualified participant's years of
service as of March 31, 2012. The amount calculated under this
subsection
shall must be equal to the product of all of the
following as determined by the retirement system in consultation
with the actuary for the system:
(a) An average monthly premium of $1,000.00, payable for the
life of the qualified participant, which approximates the overall
average value of all types of premium coverages for single and
multiple
lives during both pre-medicare pre-Medicare
and post-
medicare
post-Medicare periods.
(b) A frozen benefit accrual percent that is the product of 3%
and the qualified participant's years of service as of March 31,
2012, up to 30 years.
(c) A deferred life annuity factor equal to the actuarial
present value as of March 31, 2012 of $1.00 per month payable for
the life of the qualified participant, based on the following
actuarial assumptions:
(i) An Except
as otherwise provided in subparagraph (ii), an
interest discount rate of 4% annually for all future years, which
approximates the use of an assumed rate of investment return or
interest discount rate of 8%, combined with an assumption that the
average premium is projected to increase 4% annually for all future
years.
(ii) Beginning with the state fiscal year ending September
2021, and for each subsequent state fiscal year, an interest
discount rate of 4% annually for all future years, which
approximates the use of an assumed rate of investment return or
interest discount rate not to exceed 6%, combined with an
assumption that the average premium is projected to increase 6%
annually for all future years.
(iii) (ii) Mortality Except as otherwise provided in this
subparagraph, mortality rates based on a 50% male - 50% female
blend of the 1994 group annuity mortality table set forward 1 year
for both males and females. Beginning with the state fiscal year
ending September 30, 2021, and for each subsequent fiscal year, the
most recent mortality assumptions provided by the Actuarial
Standards Board and adopted as risk assumptions by the actuary must
be used.
(iv) (iii) Commencement
of the $1.00 per month deferred life
annuity based on an assumption that the qualified participant will
terminate
employment upon on reaching age 60 and that the qualified
participant would have received health insurance coverage
immediately
upon on termination of employment.
(8)
The amount calculated under subsection (7) shall must be
adjusted annually from March 31, 2012 to the date of the qualified
participant's actual termination of employment. Except as otherwise
provided in this subsection, the retirement system shall establish
the amount of the annual adjustment to be equal to the change in
the
medical care component of the United States consumer price
index
Consumer Price Index for the most recent 12-month period for
which
data are available from the bureau of labor statistics Bureau
of
Labor Statistics of the United States department
Department of
labor.
Labor. The adjustment under this subsection shall must not
be
less than 0% and shall must
not be more than 4%.
(9) The amount calculated under subsection (7) and adjusted
under
subsection (8) shall must be credited at the qualified
participant's first termination of employment following December
31, 2011, to the qualified participant's tax–deferred account
according to the following schedule:
(a) One hundred percent of the calculated amount to a
qualified participant who is at least 60 years of age with at least
10 years of service or is at least 55 years of age with at least 30
years of service.
(b) Fifty percent of the calculated amount to a qualified
participant who has at least 10 years of service and who does not
meet the age and service qualifications of subdivision (a).
(10) An individual who is a former qualified participant on
December 31, 2011, who has 10 or more years of service on or before
December
31, 2011, and who is reemployed by this state on or after
January
1, 2014 shall December 31,
2013 must be treated in the same
manner as a qualified participant under this section who made the
election
under subsection (5) and shall must
receive an amount, if
any, as determined under this section. This subsection does not
apply to any of the following:
(a) A former member who made the election to become a
qualified participant under section 50.
(b) A member who did not make the election under section 50a.
(c) A member who made the election under section 50a(1) and
the designation under section 50a(2), who has attained 30 years of
credited service, and who remains employed by this state.
(11) In lieu of any other health insurance coverage that might
have been paid by this state, a credit to a health reimbursement
account within the trust created under the public employee
retirement health care funding act, 2010 PA 77, MCL 38.2731 to
38.2747,
shall must be made by this state in the amounts and to the
qualified participants or former qualified participants as follows:
(a) Two thousand dollars to a qualified participant who was
first
employed and entered upon on
the payroll of his or her
employer
on or after January 1, 2012, December 31, 2011, who is 60
years of age or older, and who has at least 10 years of service at
his or her first termination of employment.
(b) One thousand dollars to a qualified participant who was
first
employed and entered upon on
the payroll of his or her
employer
on or after January 1, 2012, December 31, 2011, who is
less than 60 years of age, and who has at least 10 years of service
at his or her first termination of employment.
(c) Two thousand dollars to a former qualified participant who
has less than 10 years of service as of December 31, 2011, who is
reemployed
by this state on or after January 1, 2012, December 31,
2011, who is 60 years of age or older, and who has at least 10
years of service at his or her first termination of employment
following December 31, 2011. This subdivision does not apply to an
individual described in subsection (10)(a), (b), or (c).
(d) One thousand dollars to a former qualified participant who
has less than 10 years of service as of December 31, 2011, who is
reemployed
by this state on or after January 1, 2012, December 31,
2011, who is less than 60 years of age, and who has at least 10
years of service at his or her first termination of employment
following December 31, 2011. This subdivision does not apply to an
individual described in subsection (10)(a), (b), or (c).
(e) Two thousand dollars shall be the minimum amount credited
to a qualified participant who made an election under subsection
(5) and who does not otherwise qualify for an amount or qualifies
for a lesser amount under this subsection at his or her first
termination of employment after December 31, 2011.
(12) The retirement system shall determine a method to
implement subsections (5) to (11), including a method for crediting
the amounts in subsection (9) to comply with any contribution
limits imposed by the internal revenue code, including, but not
limited to, crediting of payments before termination of employment.
(13) Subsections (5) to (11) do not apply to a qualified
participant who is eligible for health insurance coverage under
section 67a(4) or (8).
(14) On or before January 1, 2017, the retirement system shall
provide a report to the chair of the house and senate
appropriations committees that provides the projected impact of
subsection (11) as it applies to qualified participants entered
upon
on the payroll of this state on or after January
1, 2017
December 31, 2016 with regard to the annual required contribution
as used by the governmental accounting standards board and for
purposes of the annual financial statements prepared under section
12(1).