Bill Text: MI SB0132 | 2009-2010 | 95th Legislature | Engrossed

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Bill Title: Retirement; elected or appointed public officials; graded premium for the governor and lieutenant governor; provide for. Amends secs. 715 & 719 of 1992 PA 234 (MCL 38.2665 & 38.2669). TIE BAR WITH: HB 4194'09

Spectrum: Partisan Bill (Republican 10-0)

Status: (Engrossed - Dead) 2010-03-23 - Referred To Second Reading [SB0132 Detail]

Download: Michigan-2009-SB0132-Engrossed.html

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SB-0132, As Passed Senate, February 24, 2010

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 132

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1992 PA 234, entitled

 

"The judges retirement act of 1992,"

 

by amending sections 714 and 715 (MCL 38.2664 and 38.2665), section

 

714 as amended by 2002 PA 95 and section 715 as amended by 1999 PA

 

215.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 714. (1) This section is subject to the vesting

 

requirements of section 715.

 

     (2) A qualified participant's employer shall contribute to the

 

qualified participant's account in Tier 2 an amount equal to 4% of

 

the qualified participant's salary.

 

     (3) A qualified participant may periodically elect to

 

contribute up to 3% of his or her salary to his or her Tier 2

 

account. The qualified participant's employer shall make an

 

additional contribution to the qualified participant's Tier 2

 

account in an amount equal to the contribution made by the

 

qualified participant under this subsection.

 

     (4) A qualified participant may make contributions in addition

 

to contributions made under subsection (3) to his or her Tier 2

 

account as permitted by the state treasurer and the internal

 

revenue code. The qualified participant's employer shall not match

 

contributions made by the qualified participant under this

 

subsection.

 

     (5) A qualified participant who makes a written election under

 

section 701a may elect to contribute up to 6% of his or her salary

 

to his or her Tier 2 account. In lieu of employer contributions

 

under subsection (3), the qualified participant's employer shall

 

make an additional contribution to the qualified participant's Tier

 

2 account in an amount equal to the contribution made by the

 

qualified participant under this subsection. This subsection

 

applies for a period as determined by the department that equals

 

the time in which a Tier 1 member was not able to make

 

contributions to the Tier 2 plan because of the temporary

 

restraining order issued in the case of Michigan judges assn v

 

Treasurer of the State of Michigan, case no. 98-DT-72771-CV (Ed

 

Mi).

 

     (6) Beginning January 1, 2002, each qualified participant who

 

was first eligible to become a qualified participant on or before

 

November 1, 2010 and who is a plan 1 member or a plan 2 member,

 

upon taking office and so long as he or she remains in office,

 

shall contribute 2.0% of the qualified participant's compensation

 

to the retirement system. The retirement system shall deposit the

 

contribution under this subsection into the reserve for health

 

benefits for hospital and medical-surgical and sick care benefits

 

as provided in section 719.

 

     Sec. 715. (1) A qualified participant is immediately 100%

 

vested in his or her contributions made to Tier 2. A qualified

 

participant shall vest in the employer contributions made on his or

 

her behalf to Tier 2 according to the following schedule:

 

     (a) Upon completion of 2 years of service, 50%.

 

     (b) Upon completion of 3 years of service, 75%.

 

     (c) Upon completion of 4 years of service, 100%.

 

     (2) A qualified participant who was first eligible to become a

 

qualified participant on or before November 1, 2010 is vested in

 

the health insurance coverage provided in section 719 if the

 

qualified participant meets 1 of the following requirements:

 

     (a) The qualified participant has completed 4 years of service

 

as a qualified participant and was not a member, deferred vested

 

member, or former nonvested member of Tier 1.

 

     (b) The qualified participant was a member, deferred vested

 

member, or former nonvested member of Tier 1 who made an election

 

to participate in Tier 2 pursuant to section 701 or 701a, and who

 

has met the service requirements he or she would have been required

 

to meet in order to vest in health benefits under section 509.

 

     Enacting section 1. This amendatory act does not take effect

 

unless House Bill No. 4194 of the 95th Legislature is enacted into

 

law.