Bill Text: MI SB0947 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Retirement; public school employees; allowing a retirant to be employed at a reporting unit under certain conditions without forfeiting retirement allowance or health care coverage; extend sunset. Amends sec. 61 of 1980 PA 300 (MCL 38.1361).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-04-17 - Referred To Committee On Education [SB0947 Detail]

Download: Michigan-2017-SB0947-Introduced.html

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SENATE BILL No. 947

 

 

April 17, 2018, Introduced by Senator PAVLOV and referred to the Committee on Education.

 

 

     A bill to amend 1980 PA 300, entitled

 

"The public school employees retirement act of 1979,"

 

by amending section 61 (MCL 38.1361), as amended by 2015 PA 219.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 61. (1) Except as otherwise provided in this section, if

 

a retirant is receiving a retirement allowance other than a

 

disability allowance payable under this act or under former 1945 PA

 

136, on account of either age or years of personal service

 

performed, or both, and becomes employed by a reporting unit, the

 

following must occur:

 

     (a) The retirant is not entitled to a new final average

 

compensation or additional service credit under this retirement

system unless additional service is performed equivalent to 5 or

 

more years of service credit or, if the retirant has contributed to

 

the member investment plan, the equivalent of 3 or more years of

 

service credit. The retirant may elect to have the retirement

 

allowance recomputed based on the added credit or the final average

 

compensation resulting from the added service, or both. A

 

retirement allowance shall must not be recomputed until the

 

retirant pays into the retirement system an amount equal to the

 

retirant's new final average compensation multiplied by the

 

percentage determined under section 41(2) for normal cost and

 

unfunded actuarial accrued liabilities, not including the

 

percentage required for the funding of health benefits, multiplied

 

by the total service credit in the period in which the retirant's

 

additional service was performed.

 

     (b) The retirant's retirement allowance must be reduced by the

 

lesser of the amount that the earnings in a calendar year exceed

 

the amount permitted without a reduction of benefits under the

 

social security act, chapter 531, 49 Stat 620, or 1/3 of the

 

retirant's final average compensation. For purposes of computing

 

allowable earnings under this subdivision, the final average

 

compensation must be increased by 5% for each full year of

 

retirement.

 

     (2) The retirement system may offset retirement benefits

 

payable under this act against amounts owed to the retirement

 

system by a retirant or retirement allowance beneficiary.

 

     (3) Subsection (1) does not apply to a retirant if all of the

 

following circumstances exist:

     (a) The retirant is a former teacher or administrator employed

 

in a teaching or research capacity by a university that is

 

considered a reporting unit for the limited purpose described in

 

section 7(3). A university that employs a retirant under this

 

subsection shall report that employment to the retirement system by

 

July 1 of each year. The university shall include in the report the

 

name of the retirant, the capacity in which the retirant is

 

employed, and the total annual compensation paid to the retirant.

 

     (b) The retirant is not eligible to use any service or

 

compensation attributable to the employment described in

 

subdivision (a) for a recomputation of his or her retirement

 

allowance.

 

     (4) Not later than April 1 of each year, the superintendent of

 

public instruction shall compile a listing of critical shortage

 

disciplines based on evidence of a shortage for each discipline.

 

The department of education shall post the listing and the

 

accompanying evidence on its website. If a discipline is not

 

included in the listing of critical shortage disciplines, 2 or more

 

contiguous reporting units may submit a written request to the

 

superintendent of public instruction to add a discipline to the

 

listing. The request must include evidence of a shortage of the

 

discipline in those contiguous reporting units. If the

 

superintendent of public instruction determines that there is a

 

shortage of the discipline in those contiguous reporting units, the

 

superintendent of public instruction shall add the discipline to

 

the listing. A discipline added under a request under this

 

subsection is applicable only to those contiguous reporting units.

For purposes of this subsection, a reporting unit that is a public

 

school academy is considered contiguous to any other reporting unit

 

in which the public school academy is located.

 

     (5) Until July 1, 2018, 2021, subsection (1) does not apply to

 

a retirant if all of the following circumstances exist:

 

     (a) The retirant is employed by a reporting unit that has a

 

situation, not including a situation caused by a labor dispute,

 

that necessitates the hiring of the retirant in an area that has

 

been identified by the superintendent of public instruction as a

 

critical shortage discipline under subsection (4).

 

     (b) The retirant is employed under any situation described in

 

subdivision (a) for a period not to exceed 3 years for that

 

retirant.

 

     (c) The retirant is not eligible to use any service or

 

compensation attributable to the employment described in

 

subdivision (a) for a recomputation of his or her retirement

 

allowance.

 

     (d) The reporting unit pays 100% of the contribution rates for

 

the unfunded actuarial accrued liability for retiree health care

 

and the unfunded actuarial accrued liability for pension to the

 

retirement system for each retirant who becomes employed by a

 

reporting unit under this subsection.

 

     (6) Subsection (5) only applies for retirants who have been

 

retired for at least 12 months before becoming employed under this

 

section.

 

     (7) Notwithstanding any other provision of this act to the

 

contrary, for a retirant who retires after June 30, 2010, and

following a bona fide termination, including not working in the

 

month of the retirant's retirement effective date, and who becomes

 

employed by a reporting unit and the retirant's amount of earnings

 

in a calendar year exceeds 1/3 of the retirant's final average

 

compensation, the retirant forfeits his or her retirement allowance

 

and the retirement system subsidy for health care benefits from the

 

retirement system for the entire month of each month in which the

 

retirant is employed at the reporting unit unless the retirant is

 

employed as described in subsection (5), (9), (10), or (11). A

 

retirant who has forfeited the retirement system subsidy for health

 

care benefits under this subsection and who wants to retain health

 

care benefits shall pay the retirant's and retirement system's

 

costs for the health care benefits. The retirement allowance and

 

retirement system subsidy for health care benefits shall resume

 

without recalculation on the first of the month following the month

 

in which the retirant has terminated reporting unit employment.

 

     (8) Notwithstanding any other provision of this act to the

 

contrary, for a retirant who retires after June 30, 2010, who

 

performs core services at a reporting unit as determined by the

 

retirement system, but who is employed by an entity other than the

 

reporting unit or is an independent contractor, the retirant

 

forfeits his or her retirement allowance and the retirement system

 

subsidy for health care benefits from the retirement system for the

 

entire month of each month in which the retirant is performing core

 

services at the reporting unit, unless the retirant is employed as

 

described in subsection (9), (10), or (12). A retirant who has

 

forfeited the retirement system subsidy for health care benefits

under this subsection and who wants to retain health care benefits

 

shall pay the retirant's and retirement system's costs for the

 

health care benefits. The retirement allowance and retirement

 

system subsidy for health care benefits shall resume without

 

recalculation on the first of the month following the month in

 

which the retirant has terminated performing core services, as

 

described in this subsection.

 

     (9) Until July 1, 2018, 2021, subsection (1) does not apply to

 

a retirant who retires after June 30, 2010 and on or before

 

September 1, 2015; 2, 2017; who following a bona fide termination,

 

including not working in the month of his or her retirement

 

effective date, becomes employed as a substitute teacher by a

 

reporting unit, by an entity other than the reporting unit, or as

 

an independent contractor; and whose amount of earnings

 

attributable to employment by or at a reporting unit in a calendar

 

year does not exceed 1/3 of his or her final average compensation.

 

A retirant described in this subsection is not eligible to use any

 

service or compensation attributable to the employment described in

 

this subsection for a recomputation of his or her retirement

 

allowance. The reporting unit at which the retirant provides

 

substitute teacher services described in this subsection shall pay

 

100% of the contribution rates for the unfunded actuarial accrued

 

liability for retiree health care and the unfunded actuarial

 

accrued liability for pension to the retirement system for the

 

employment described in this subsection. The reporting unit shall

 

report the engagement of substitute teachers to the retirement

 

system at the same interval the reporting unit reports information

to the retirement system with regard to its other employees. The

 

reporting unit shall include in the report the name of the

 

substitute teacher and the total earnings paid to the substitute

 

teacher for that reporting period. In order to comply with the

 

reporting requirements of this subsection, a reporting unit that

 

engages substitute teachers through an entity other than a

 

reporting unit or as independent contractors shall obtain from the

 

substitute teacher's employer a list of all substitute teachers the

 

employer supplies to that reporting unit and the total earnings

 

paid to each substitute teacher for the reporting period. An

 

employer other than a reporting unit that employs substitute

 

teachers as described in this subsection shall provide to the

 

reporting unit all information that the reporting unit is required

 

to report to the retirement system under this subsection. For the

 

purposes of this subsection, an employer includes an independent

 

contractor.

 

     (10) Until July 1, 2018, 2021, subsection (1) does not apply

 

to a retirant who retires after June 30, 2010 and on or before

 

September 1, 2015; 2, 2017; who following a bona fide termination,

 

including not working in the month of his or her retirement

 

effective date, becomes employed as an instructional coach or a

 

school improvement facilitator by an entity other than the

 

reporting unit or as an independent contractor; and whose amount of

 

earnings attributable to employment at a reporting unit in a

 

calendar year does not exceed 1/3 of his or her final average

 

compensation. A retirant described in this subsection is not

 

eligible to use any service or compensation attributable to the

employment described in this subsection for a recomputation of his

 

or her retirement allowance. The reporting unit at which the

 

retirant provides the services described in this subsection shall

 

pay 100% of the contribution rates for the unfunded actuarial

 

accrued liability for retiree health care and the unfunded

 

actuarial accrued liability for pension to the retirement system

 

for the employment described in this subsection. The reporting unit

 

shall report the engagement of instructional coaches or school

 

improvement facilitators to the retirement system at the same

 

interval the reporting unit reports information to the retirement

 

system with regard to its other employees. The reporting unit shall

 

include in the report the name of the instructional coach or school

 

improvement facilitator and the total earnings paid to the coach or

 

facilitator for that reporting period. In order to comply with the

 

reporting requirements of this subsection, a reporting unit shall

 

obtain from the coach's or facilitator's employer a list of all

 

instructional coaches and school improvement facilitators the

 

employer supplies to that reporting unit and the total earnings

 

paid to each coach or facilitator for the reporting period. An

 

employer other than a reporting unit that employs instructional

 

coaches or school improvement facilitators as described in this

 

subsection shall provide to the reporting unit all information that

 

the reporting unit is required to report to the retirement system

 

under this subsection. For the purposes of this subsection, an

 

employer includes an independent contractor. As used in this

 

subsection, "instructional coach" and "school improvement

 

facilitator" mean those terms as used in the listing of critical

shortage disciplines developed by the superintendent of public

 

instruction under subsection (4).

 

     (11) Subsection (1) does not apply to a retirant who is a

 

former teacher or administrator who retires after June 30, 2010 and

 

on or before October 1, 2, 2014, who following a bona fide

 

termination, including not working in the month of his or her

 

retirement effective date, becomes employed in a teaching or

 

research capacity or in a program-department direction capacity by

 

a university that is considered a reporting unit for the limited

 

purpose described in section 7(3). A retirant described in this

 

subsection is not eligible to use any service or compensation

 

attributable to the employment described in this subsection for

 

recomputation of his or her retirement allowance. The reporting

 

unit at which the retirant provides the services described in this

 

subsection shall pay 100% of the contribution rates for the

 

unfunded actuarial accrued liability for retiree health care and

 

the unfunded actuarial accrued liability for pension to the

 

retirement system for the employment described in this subsection.

 

The reporting unit shall report the employment of a retirant as

 

described in this subsection to the retirement system by July 1 of

 

each year. The reporting unit shall include in the report the name

 

of the retirant, the capacity in which the retirant is employed,

 

and the total annual compensation paid to the retirant.

 

     (12) Until July 1, 2018, 2021, notwithstanding any provision

 

of this act to the contrary, for a retirant who retires after June

 

30, 2010, who is employed as an independent contractor at a

 

reporting unit for a situation described in subsection (5)(a) or is

employed at a reporting unit for a situation described in

 

subsection (5)(a) by an entity other than the reporting unit, who

 

has been retired for at least 12 months before becoming employed

 

under this subsection, and whose employment under this subsection

 

does not exceed 3 years, the reporting unit at which the retirant

 

provides services under this subsection shall pay 100% of the

 

contribution rates for the unfunded actuarial accrued liability for

 

retiree health care and the unfunded actuarial accrued liability

 

for pension to the retirement system for the employment described

 

in this subsection.