Bill Text: MI SB0156 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Retirement: state employees; election process to transfer a corrections officer to the Michigan state police retirement system; provide for. Amends sec. 55 of 1943 PA 240 (MCL 38.55) & adds secs. 50b & 65a. TIE BAR WITH: SB 0157'23
Spectrum: Bipartisan Bill
Status: (Introduced) 2023-03-09 - Referred To Committee On Labor [SB0156 Detail]
Download: Michigan-2023-SB0156-Introduced.html
SENATE BILL NO. 156
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 55 (MCL 38.55), as amended by 2011 PA 264, and by adding sections 50b and 64a.
the people of the state of michigan enact:
Sec. 50b. (1) The retirement system shall permit each covered position qualified participant who first became a qualified participant on or after March 31, 1997 to make an election to terminate being a qualified participant and elect to become a member of the Michigan state police retirement system created under the state police retirement act of 1986, 1986 PA 182, MCL 38.1601 to 38.1674.
(2) An election under subsection (1) is irrevocable. The retirement system shall determine a method of accepting elections during the following periods, as applicable:
(a) For a covered position qualified participant who first became a qualified participant on or after March 31, 1997 and before February 1, 2024, beginning on the effective date of the amendatory act that added this section and ending 75 days after the effective date of the amendatory act that added this section.
(b) For a covered position qualified participant who first becomes a qualified participant on or after February 1, 2024, 75 days from the individual's first payroll date.
(3) A covered position qualified participant who does not make an election before the close of the applicable election period is considered to have made an election to continue to be a qualified participant.
(4) An election under this section is subject to the eligible domestic relations order act, 1991 PA 46, MCL 38.1701 to 38.1711.
(5) As used in this section:
(a) "Covered position" means that term as defined in section 45.
(b) "Covered position qualified participant" means a qualified participant to whom both of the following apply:
(i) Is employed in a covered position.
(ii) Is not a qualified participant described in section 55(2)(b) or (e).
Sec. 55. (1) "Plan document" means the document that contains the provisions and procedures of Tier 2 in conformity with this act and the internal revenue code.
(2) "Qualified participant" means an individual who is a participant of Tier 2 and who meets 1 of the following requirements:
(a) Is first employed and entered upon on the payroll of his or her employer on or after March 31, 1997, and who before March 31, 1997 would have been eligible to be a member of Tier 1.
(b) Elects to terminate membership in Tier 1 and elects to participate in Tier 2 in the manner prescribed in section 50.
(c) Is an adjutant general or an assistant adjutant general under the Michigan military act, 1967 PA 150, MCL 32.501 to 32.851, and who is first employed as an adjutant general or assistant adjutant general on or after January 1, 2011.December 31, 2010.
(d) Was a member who did not make the election under section 50a.
(e) Was a member who made the election under section 50a(1) and the designation under section 50a(2) and who has attained 30 years of credited service or who has terminated employment and has been reemployed by this state.
(f) Was a member as described in section 50a(6), (7), or (8).
(3) Qualified participant does not include an individual employed in a covered position who elects to terminate being a qualified participant under section 50b. As used in this subsection, "covered position" means that term as defined in section 45.
(4) (3) "Refund beneficiary" means an individual nominated by a qualified participant or a former qualified participant under section 66 to receive a distribution of the participant's accumulated balance in the manner prescribed in section 67.
(5) (4) "State treasurer" means the treasurer of this state.
(6) (5) "Tax-deferred account" means an account or accounts of existing deferred compensation plans or plans established by the retirement system, for which the retirement system has the authority to determine the membership, eligibility, terms, conditions, and other administrative and operational features. Tax-deferred account does not include a health reimbursement account for purposes other than complying with the contribution limits described in section 68b(12).
(7) (6) Except as otherwise provided in this subsection, "year of service" means each period during which a qualified participant is employed by the employer and is credited with 2,080 hours of service. The Tier 2 plan administrator and the plan document may provide for a lesser number of annual hours and a maximum number of hours per pay period for any classification of employees, provided that no but a participant shall may not receive credit for more than 1 year of service for any 12-month period of employment. Beginning January 1, 2003, full service credit shall must also be given to a participant for furlough hours, for required 1-day layoffs, for required and designated temporary layoffs, for a year in which a participant temporarily leaves employment to enter active military duty and then dies during that active military duty, and for participation in the banked leave time program. In the event If a terminated participant is reemployed, such the individual shall must retain credit for all full and partial years of service completed prior to such before the reemployment, for purposes of determining his or her vesting percentage in any employer contributions made pursuant to section 63(2) and (3) after his or her the reemployment.
Sec. 64a. A covered position qualified participant who elects to terminate being a qualified participant under section 50b may transfer part or all of his or her contributions made to Tier 2 and, subject to the vesting schedule under section 64, transfer part or all of employer contributions made on his or her behalf to Tier 2 to purchase service credit under the state police retirement act of 1986, 1986 PA 182, MCL 38.1601 to 38.1674, as provided in section 24c of the state police retirement act of 1986, 1986 PA 182, MCL 38.1624c.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 157 of the 102nd Legislature is enacted into law.
