December 13, 2017, Introduced by Rep. Hornberger and referred to the Committee on Financial Liability Reform.
A bill to amend 1980 PA 300, entitled
"The public school employees retirement act of 1979,"
by amending section 71 (MCL 38.1371), as amended by 2017 PA 92.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 71. (1) Until September 29, 2017 at 5 p.m. Eastern
Daylight Saving Time, the retirement board shall grant service
credit for the time a member is on a sabbatical leave authorized by
a reporting unit, if the member returns to regular employment with
the same reporting unit and acquires 1 year or more of subsequent
service credit with that same reporting unit and if the member
acquired 5 or more years of credited service with the reporting
unit immediately before the sabbatical leave.
(2) If the sabbatical leave described in subsection (1) is
granted before July 1, 1981, the reporting unit, if the reporting
unit had a noncontributory plan at the time the sabbatical leave is
granted, or the member, if the reporting unit has a contributory
plan at the time the sabbatical leave is granted, shall pay to the
system for each year of sabbatical leave credit an amount equal to
5% of the member's compensation earned in the school fiscal year
immediately before the school fiscal year in which the sabbatical
leave
is granted , together with and regular interest from
the end
of the school fiscal year in which the sabbatical leave was or is
granted
to the earlier of the following dates following the date of
payment,
the first day of the school fiscal
year beginning after
the date of payment or the first day of the seventh month of the
school fiscal year in which the payment is made, whichever is
earlier. If the reporting unit makes the payment required by this
subsection, the reporting unit also shall pay the required
interest. If the member makes the payment required by this
subsection, the member also shall pay the required interest.
(3) If the sabbatical leave described in subsection (1) is
granted after June 30, 1981, the member shall pay an amount equal
to 5% of the member's full-time or equated full-time compensation
earned in the school fiscal year immediately before the school
fiscal year in which payment is made for each year of service
credit the member elects to purchase. In computing payment under
this subsection, the compensation amount used, except as otherwise
provided in this subsection, must not be less than the highest
school fiscal year compensation the member earned from the
reporting unit that granted the sabbatical leave. If the
compensation amount used for computing payment under this
subsection exceeds the member's final average compensation
determined at the time of retirement, the payment required under
this subsection must be recomputed using the member's final average
compensation and a refund must be made based on the recomputation.
(4) If, before October 31, 1980, either the reporting unit or
the member has contributed 5% of the member's compensation for the
school fiscal year in which the sabbatical leave was granted in
order to purchase service credit for that sabbatical leave, a
further payment for the purchase of service credit for that
sabbatical
leave shall is not be required. If a member has paid the
amount required under subsection (2) for the purchase of service
credit for sabbatical leave, but later receives a refund of that
amount, the member, not the reporting unit, shall repay the amount
with regular interest as required by subsection (2) if the member
elects to purchase service credit for the sabbatical leave.
(5) Effective October 1, 1981, except as otherwise provided in
subsection (8), the retirement board shall grant service credit for
the time a member is on either an employee organization
professional services leave or employee organization professional
services released time authorized by a reporting unit if all of the
following conditions are satisfied, as applicable:
(a) For a member who is on either a professional services
leave or professional services released time that first began
before October 1, 1996, which leave or released time is renewed
annually by the reporting unit, the member is included on the
reporting unit's reports required by section 42(6) and
compensation, service, contribution, and other requirements are
reported on the same basis as for those members of the reporting
unit who were not granted an employee organization professional
services leave or employee organization professional services
released time.
(b) For a member who is on either a professional services
leave or professional services released time, which leave or
released time does not meet the requirements of subdivision (a),
the member is included on the reporting unit's reports in the
manner required by subdivision (a), except that compensation is
reported at the rate of compensation paid to the member by the
reporting unit immediately preceding the date the member commenced
the professional services leave or professional services released
time
along with the normal and customary compensation increases
that would have been paid to the member by the reporting unit had
the member remained in the same position held at the reporting unit
immediately preceding the date the member commenced the leave or
released time. However, if the member was not working a full 12-
month period for the reporting unit immediately preceding the date
the member commenced the professional services leave or
professional services released time and is working a full 12-month
period for the public school employee organization, the rate of
compensation paid to the member by the reporting unit immediately
preceding the date the member commenced the leave or released time
may be increased proportionately to reflect the additional time
worked for the public school employee organization. That adjusted
compensation,
along with the normal and customary compensation
increases otherwise allowed in this subdivision, must then be
reported as required in this subdivision.
(c) For a member who is on either a professional services
leave or professional services released time that first began
before October 1, 1996, which leave or released time is renewed
annually by the reporting unit, the reporting unit remits the
amount required by section 42 and the percentage of aggregate
annual compensation provided from the state school aid fund for
current service, if any, the percentage determined for unfunded
accrued service as required by section 41, and the employer's share
of social security contributions if the reporting unit is
responsible for remitting the employee's share of social security
contributions.
(d) For a member who is on either a professional services
leave or professional services released time, which professional
services leave or professional services released time does not meet
the requirements of subdivision (c), the reporting unit remits the
amounts required by subdivision (c) based on the rate of
compensation paid to the member by the reporting unit immediately
preceding the date the member commenced the professional services
leave
or professional services released time along with the normal
and customary compensation increases that would have been paid to
the member by the reporting unit had the member remained in the
same position held at the reporting unit immediately preceding the
date the member commenced the leave or released time. However, if
the member was not working a full 12-month period for the reporting
unit immediately preceding the date the member commenced the
professional services leave or professional services released time
and is working a full 12-month period for the public school
employee organization, the rate of compensation paid to the member
by the reporting unit immediately preceding the date the member
commenced the leave or released time may be increased
proportionately to reflect the additional time worked for the
public school employee organization. That adjusted compensation,
along
with the normal and customary
compensation increases
otherwise allowed in this subdivision, must then be reported as
required in this subdivision.
(6)
The reporting unit must be reimbursed those sums paid to
the
retirement board under subsection (5) by the member or the
public school employee organization shall, on a current basis,
reimburse the reporting unit the amounts paid to the retirement
board under subsection (5). A member who has credited service as an
employee of a school district of the first class, as described in
part 6 of the revised school code, 1976 PA 451, MCL 380.401 to
380.485,
380.483a, for a leave of absence effective before October
1,
1981, shall must continue to receive credit based on the law of
this state in effect at the time the leave of absence was initially
effective.
(7) After September 29, 2017 at 5 p.m. Eastern Daylight Saving
Time, a member is not eligible to initiate a service credit
purchase under subsections (1) and (3).
(8) Notwithstanding section 4(10) and (11), the retirement
board shall not grant service credit under subsection (5) for any
time, after the effective date of the amendatory act that added
this subsection, that a member is on either an employee
organization professional services leave, professional services
leave, employee organization professional services released time,
or professional services released time.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.