Bill Text: MI SB0552 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Retirement; state employees; early out retirement option for certain state employees; provide for. Amends sec. 19 of 1943 PA 240 (MCL 38.19).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2009-05-07 - Referred To Committee On Appropriations [SB0552 Detail]
Download: Michigan-2009-SB0552-Introduced.html
SENATE BILL No. 552
May 7, 2009, Introduced by Senator BROWN and referred to the Committee on Appropriations.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 19 (MCL 38.19), as amended by 2002 PA 93.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 19. (1) A member who is 60 years of age or older and has
10 or more years of credited service or a member who is 60 years of
age or older and has 5 or more years of credited service as
provided in section 20(4) or (5) may retire upon written
application to the retirement board, stating a date on which he or
she desires to retire. Beginning on the retirement allowance
effective date, he or she shall receive a retirement allowance
computed according to section 20(1).
(2) A member who is 55 years of age or older, but less than 60
years of age, and has 15 or more years of credited service, may
retire upon written application to the retirement board stating a
date on which he or she desires to retire. Upon retirement he or
she shall receive a retirement allowance computed according to
section 20(1). Except as otherwise provided in this act, the
retirement allowance of a member who has less than 30 years of
credited service shall be reduced by an amount that is 0.5% of the
retirement allowance multiplied by the number of months the
person's age at retirement is under 60 years. The reduction of 1/2
of 1% for each month and fraction of a month from the member's
retirement allowance effective date to the date of the member's
sixtieth birthday provided for in this subsection does not apply to
a member who retired before July 1, 1974 and before attainment of
age 60, with 30 or more years of credited service. The retirement
allowance of a retirant or beneficiary of a retirant who retired
before that date shall be recalculated disregarding the reduction,
and the person receiving the retirement allowance is eligible to
receive an adjusted retirement allowance based on the recalculation
beginning October 1, 1987, but is not eligible to receive the
adjusted amount attributable to any month beginning before October
1, 1987. The recalculated retirement allowance provided by this
subsection shall be paid by January 1, 1988. The retirement
allowance of a retirant who dies before January 1, 1988, and who
has not nominated a retirement allowance beneficiary pursuant to
section 31, shall not be recalculated pursuant to this subsection.
(3) Notwithstanding any other provision of this section,
effective April 1, 1988, a member may retire with a retirement
allowance computed according to section 20(1), without regard to
the reduction in subsection (2), if all of the following apply:
(a) The member files a written application with the retirement
board stating a date, not less than 30 or more than 90 days after
the execution and filing of the application, on which the member
desires to retire, and which is within the early retirement
effective period.
(b) The member was employed by the state for the 6-month
period immediately preceding the member's retirement allowance
effective date. This subdivision does not apply to a member who had
been restored to active service during that 6-month period pursuant
to section 33.
(c) On the last day of the month immediately preceding the
retirement allowance effective date stated in the application, the
member's combined age and length of credited service is equal to or
greater than 80 years and the member is 50 years of age or older.
(d) For purposes of this subsection, "early retirement
effective period" means 1 of the following:
(i) Except as provided in subparagraph (ii), the period
beginning on April 1, 1988 and ending on April 1, 1989.
(ii) For a member employed by a hospital or facility owned or
operated by the department formerly known as the department of
mental health that is in the process of being closed by the
department formerly known as the department of mental health, the
period beginning on April 1, 1988 and ending on October 1, 1989.
(4) As used in subsections (5) to (9):
(a) "Agency of the department" means 1 of the following:
(i) Southwest Michigan community living services.
(ii) Wayne community living services.
(b) "Department inpatient facility" means 1 of the following:
(i) A developmental disability center that is directly operated
by the department formerly known as the department of mental health
for purposes of providing inpatient care and treatment services to
persons with developmental disabilities.
(ii) A psychiatric hospital that is directly operated by the
department formerly known as the department of mental health for
purposes of providing inpatient diagnostic and therapeutic services
to persons who are mentally ill.
(5) Notwithstanding any other provision of this section, a
member who is an employee of an agency of the department or a
department inpatient facility and is on layoff status because the
agency or inpatient facility has been designated by the state
officer formerly known as the director of mental health for closure
on or after October 1, 1989, may retire as provided in subsection
(7) or (8), as applicable, with a retirement allowance computed
according to section 20(1), without regard to the reduction in
subsection (2), upon satisfaction of any 1 of the following
conditions:
(a) The member is 51 years of age or older and has 25 or more
years of credited service, the last 5 of which are as an employee
of an agency of the department designated for closure or a
department inpatient facility designated for closure.
(b) The member is at least 56 years of age and has 10 or more
years of credited service, the last 5 of which are as an employee
of an agency of the department designated for closure or a
department inpatient facility designated for closure.
(c) The member has 25 or more years of credited service,
regardless of age, as an employee of an agency of the department
designated for closure or a department inpatient facility
designated for closure.
(6) When a department inpatient facility or agency is
designated for closure on or after October 1, 1989, the state
officer formerly known as the director of mental health shall
certify in writing to the state legislature and the retirement
board, not less than 240 days before the designated official date
of closure, which facility or agency is to be closed and the
designated official date of closure.
(7) Except as provided in subsection (8), a member who is
eligible to receive a retirement allowance under subsection (5) may
retire effective on the date that an agency of the department or a
department inpatient facility designated for closure as provided in
subsection (5) actually closes, upon written application to the
retirement board not less than 30 or more than 180 days before the
designated official date of closure. Beginning on the retirement
allowance effective date, he or she shall receive a retirement
allowance computed according to section 20(1).
(8) A member who is on layoff status, is not working for the
state, and becomes eligible to receive a retirement allowance under
subsection (5) and who was an employee of an agency of the
department or a department inpatient facility that has been
designated for closure as provided in subsection (5) and that
actually closes on or after October 1, 1989, may retire upon
written application to the retirement board, stating a date upon
which he or she wishes to retire. Beginning on the retirement
allowance effective date, he or she shall receive a retirement
allowance computed according to section 20(1).
(9) Any additional accrued actuarial cost and costs for health
insurance resulting from the implementation of subsection (5) shall
be funded from appropriations to the department formerly known as
the department of mental health for this purpose.
(10) A member who is an employee of the state accident fund on
the date of transfer to a permitted transferee as that term is
defined by section 701a of the worker's disability compensation act
of 1969, 1969 PA 317, MCL 418.701a, may retire if the member's age
and his or her length of service is equal to or greater than 70
years on the date of transfer. The member may retire upon written
application to the retirement board, stating a date, not less than
30 or more than 90 days after the execution and filing of the
application, on which he or she desires to retire. Beginning on the
retirement allowance effective date, he or she shall receive a
retirement allowance computed according to section 20(1) without
regard to the reduction required by subsection (2).
(11) A member who is an employee of the Michigan biologic
products institute on the date the institute is conveyed pursuant
to the Michigan biologic products institute transfer act, 1996 PA
522, MCL 333.26331 to 333.26340, may retire if the member's age and
his or her length of service is equal to or greater than 70 years
on the date of the conveyance. The member may retire upon written
application to the retirement board, stating a date, not less than
30 or more than 90 days after the execution and filing of the
application, on which he or she desires to retire. Beginning on the
retirement allowance effective date, he or she shall receive a
retirement allowance computed according to section 20(1) without
regard to the reduction required by subsection (2).
(12) A member who is an employee of the liquor control
commission created by section 209 of the Michigan liquor control
code of 1998, 1998 PA 5, MCL 436.1209, whose employment is
terminated due to the privatization of the distribution of spirits
within this state is effectuated pursuant to the resolution and
order adopted by the liquor control commission on February 7, 1996,
a plan adopted pursuant to statute or court order, or a plan
adopted pursuant to both statute and order of the liquor control
commission may retire if the member's age and his or her length of
service is equal to or greater than 70 years on the date the
privatization is effectuated. The member may retire under this
subsection upon written application to the retirement board,
stating a date, not less than 30 or more than 90 days after the
execution and filing of the application, on which he or she desires
to retire. Beginning on the retirement allowance effective date, he
or she shall receive a retirement allowance computed according to
section 20(1), without regard to the reduction required by
subsection (2). The cost of benefits paid under this section shall
be paid out of the revolving fund created under section 221 of the
Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1221.
(13) A member who is an employee of the Adrian training school
in the bureau of juvenile justice in the department of human
services on January 1, 2009 and who is laid off or displaced on or
after January 1, 2009 and on or before May 1, 2009 may retire if
the member's age and his or her length of service is equal to or
greater than 70 years on the date the member is laid off or
displaced. The member may retire under this subsection upon written
application to the retirement board, stating a date, not less than
30 or more than 90 days after the execution and filing of the
application, on which he or she desires to retire. The retirement
board shall accept applications for 6 months on and after May 1,
2009. Beginning on the retirement allowance effective date, he or
she shall receive a retirement allowance computed according to
section 20(1) without regard to the reduction required by
subsection (2).
(14) A member who is an employee of the Adrian training school
in the bureau of juvenile justice in the department of human
services on January 1, 2009 and who is laid off or displaced on or
after January 1, 2009 and on or before May 1, 2009 may retire if
the member's age and his or her length of service is equal to or
greater than 75 years on the date the member is laid off or
displaced. The member may retire under this subsection upon written
application to the retirement board, stating a date, not less than
30 or more than 90 days after the execution and filing of the
application, on which he or she desires to retire. The retirement
board shall accept applications for 6 months on and after May 1,
2009. Upon his or her retirement as provided in this subsection, a
member who did not make an election to terminate membership in Tier
1 and became a qualified participant in Tier 2 shall receive a
retirement allowance equal to the member's number of years and
fraction of a year of credited service multiplied by 1-3/4% of his
or her final average compensation. Except for the calculation
provided in this subsection, the member's retirement allowance is
subject to section 20. The member's retirement allowance is not
subject to reduction pursuant to subsection (2).
(15) For purposes of this section, an employee who is
displaced is an active employee who must move from his or her
assignment location because of a staffing imbalance resulting from
layoffs, a reduction in force, a closure, or any combination
thereof.
