Bill Text: MI SB0690 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Retirement; municipal employees; revocation of municipality's election to participate in the retirement system; allow, and make act subject to the protecting local government retirement and benefits act. Amends sec. 36 of 1984 PA 427 (MCL 38.1536) & adds sec. 41a. TIE BAR WITH: SB 0686'17
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2017-12-12 - Referred To Committee On Michigan Competitiveness [SB0690 Detail]
Download: Michigan-2017-SB0690-Engrossed.html
SB-0690, As Passed Senate, December 7, 2017
SUBSTITUTE FOR
SENATE BILL NO. 690
A bill to amend 1984 PA 427, entitled
"Municipal employees retirement act of 1984,"
by amending section 36 (MCL 38.1536), as amended by 2004 PA 490.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 36. (1) A retirement board is created to administer this
act.
Before the certification date, August
15, 1996, the retirement
board shall operate within the department of management and budget.
On
and after the certification date, After
August 14, 1996, the
retirement
system shall become is a public corporation and shall no
longer
does not operate within the executive branch of this state.
(2)
On and after the certification date, After August 14,
1996, subject to the protecting local government retirement and
benefits act, the retirement board has all of the following powers
and duties:
(a) The retirement board shall determine and establish all of
the provisions of the retirement system affecting benefit
eligibility, benefit programs, contribution amounts, and the
election of municipalities, judicial circuit courts, judicial
district courts, and judicial probate courts to be governed by the
provisions of the retirement system. The retirement board shall
establish
all retirement system provisions. As of 12:01 a.m. on the
certification
date, August 15, 1996, the retirement system
provisions
shall must not differ materially from the defined
benefit provisions that are in effect under this act at 11:59 p.m.
on
the day immediately before the certification date. August 14,
1996. This subdivision does not limit the retirement board's
authority
after the certification date August
15, 1996 to establish
additional programs, including, but not limited to, defined
benefit, defined contribution, ancillary benefits, health and
welfare benefits, and other postemployment benefit programs. The
retirement board may adopt the provisions of the reciprocal
retirement act, 1961 PA 88, MCL 38.1101 to 38.1106, on behalf of
the employees of the retirement board.
(b)
The retirement board has the full and exclusive authority
and full responsibility to employ and pay for all professional
services, including, but not limited to, actuarial, investment,
legal, accounting, and any other services that the retirement board
considers necessary for the proper operation of the retirement
system. The power granted to the retirement board in this
subdivision includes complete control of the procurement process.
(c) The retirement board shall appoint a chief executive
officer and any other employees for which the retirement board
establishes positions. The retirement board shall establish the
compensation
of all persons appointed by the board. On and after
the
certification date, After
August 14, 1996, a person employed by
the
public corporation is not an employee of this state. for
any
purpose.
(d) The retirement board shall arrange for an annual actuarial
valuation and report of the actuarial soundness of each
participating municipality and court to be prepared by an
independent
actuary based upon on data compiled and supplied by
employees of the retirement system. The retirement board shall
adopt actuarial tables, assumptions, and formulas after
consultation with the actuary.
(e) The retirement board shall arrange for annual audits of
the records and accounts of the retirement system by a certified
public accountant or by a firm of certified public accountants
pursuant
to under generally accepted auditing standards and the
uniform budgeting and accounting act, 1968 PA 2, MCL 141.421 to
141.440a.
(f) The retirement board shall prepare an annual report for
each fiscal year in compliance with generally accepted accounting
principles.
The report shall contain must
include information
regarding the financial, actuarial, and other activities of the
retirement system during the fiscal year. The retirement board
shall furnish a copy of the annual report to the governor and a
copy in print or electronic format to each house of the
legislature, each participating municipality, and each
participating court. The retirement board shall make the report
available
to all members upon on request. The report shall must
also
contain include a review of the actuarial valuation required
under subdivision (d), if available.
(g) The retirement board shall appoint an attorney to be the
legal advisor of the board and to represent the board in all
proceedings.
(h) The retirement board shall appoint or employ custodians of
the assets of the retirement system. The custodians shall perform
all duties necessary and incidental to the custodial responsibility
and make disbursements of authorized retirement system payments
from the funds of the retirement system.
(i) The retirement board shall perform other functions that
are
required for the execution of the provisions of this act.
(j) The retirement board shall establish the time and location
of the meetings of the retirement board and the time and location
of the annual meeting of the retirement system, consistent with the
provisions
of the open meetings act, 1976 PA
267, MCL 15.261 to
15.275.
(3)
Before the certification date, August
15, 1996, the
provisions
of the executive organization act
of 1965, 1965 PA 380,
MCL 16.101 to 16.608, and the management and budget act, 1984 PA
431,
MCL 18.1101 to 18.1594, shall govern the administrative
functions of the retirement system. However, any provision of law
in
actual conflict with the provisions of the amendatory act that
added
this sentence shall 1996 PA 220
does not apply.
(4)
On and after the certification date, After August 14,
1996, the retirement board consists of the following 9 members,
each of whom, excepting the retiree member and the retirement board
appointees,
shall must be from a different county at the time of
appointment:
(a) Two members appointed by the retirement board who have
knowledge or experience in retirement systems, administration of
retirement systems, or investment management or advisory services.
(b) One member who is a retiree of the system appointed by the
board.
(c) Three members of the retirement system who are officers of
participating
municipalities or courts, who shall must be
designated as officer board members.
(d) Three employee members of the retirement system who are
not
officers of a participating municipality or court, who shall
must be designated as employee board members.
(5) The retirement board shall adopt its own rules of
procedure and shall keep a record of its proceedings. Five members
of
the retirement board shall constitute a quorum at any a meeting
of
the retirement board and at least 5 concurring votes shall be
are necessary for any decision by the retirement board. Each member
of
the retirement board shall be is
entitled to 1 vote on each
question before the retirement board.
(6) The regular term of office of members of the retirement
board is 3 years. Each member of the retirement board shall take an
oath of office before assuming the duties of the position. Members
of the retirement board shall serve without compensation with
respect
to their duties, but shall must
be reimbursed by the
retirement system for their actual and necessary expenses incurred
in the performance of their duties. A participating municipality or
court employing a member of the retirement board shall treat
absences
from work on account because
of retirement board business
in
such a manner that the individual does not suffer loss of pay or
benefits.
(7)
A vacancy shall occur occurs
on the retirement board upon
on the occurrence of any of the following events:
(a) An officer board member ceases to be eligible for
nomination as an officer board member.
(b) An employee board member ceases to be eligible for
nomination as an employee board member.
(c) Failure to attend 3 consecutive scheduled meetings of the
retirement board, unless excused for cause by majority vote of the
board members attending the meeting.
(8)
A The retirement system
board shall fill a vacancy
occurring on the retirement board at least 120 days before the
expiration
of a term of office. shall be filled by the retirement
board.
Board appointments under this
subsection shall be are for
the period ending on the December 31 next following the date of the
vacancy. For the officer board members and employee board members,
a
replacement for any further portion of the unexpired term shall
must
be filled pursuant to under section
45. For the 2 appointed
board members and the retiree board member, a replacement for any
further
portion of the unexpired term shall must be filled pursuant
to
under subsection (4).
(9) The retirement board shall select from its members a
chairperson and a chairperson pro-tem.
(10) The retirement board shall employ a chief executive
officer. The chief executive officer shall do all of the following:
(a) Manage and administer the retirement system under the
supervision and direction of the retirement board.
(b) Invest the assets of the retirement system, as directed by
the retirement board, consistent with the public employee
retirement system investment act, 1965 PA 314, MCL 38.1132 to
38.1140m,
which act governs the investment of assets of public
employee
retirement systems.38.1141.
(c) Annually prepare and submit to the retirement board for
review, amendment, and adoption an itemized budget showing the
amount required to pay the retirement system's expenses for the
following fiscal year.
(d)
Perform other duties as the retirement board , in its
discretion,
shall delegate delegates to the chief executive
officer.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 686 of the 99th Legislature is enacted into
law.
