Bill Text: MI SB1132 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Retirement; state employees; Tier 2 vesting schedule for qualified participants appointed by governor or legislature after December 31, 2014; modify. Amends sec. 64 of 1943 PA 240 (MCL 38.64).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-11-06 - Referred To Committee On Reforms, Restructuring And Reinventing [SB1132 Detail]

Download: Michigan-2013-SB1132-Introduced.html

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SENATE BILL No. 1132

 

 

November 6, 2014, Introduced by Senator KAHN and referred to the Committee on Reforms, Restructuring and Reinventing.

 

 

 

     A bill to amend 1943 PA 240, entitled

 

"State employees' retirement act,"

 

by amending section 64 (MCL 38.64), as amended by 2011 PA 264.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 64. (1) A qualified participant is immediately 100%

 

vested in his or her contributions made to Tier 2 and employer

 

contributions under the banked leave time program. Except as

 

otherwise provided in this section, a qualified participant shall

 

vest vests 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 is eligible for the health

 

insurance coverage provided in section 68 if the qualified

 

participant meets 1 of the following requirements:

 

     (a) The qualified participant has completed 10 years of

 

service as a qualified participant, was not a member, deferred

 

member, or former nonvested member of Tier 1, was first employed

 

and entered upon the payroll of his or her employer before January

 

1, 2012, and did not make an election to opt out of health

 

insurance coverage under section 68b.

 

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

 

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

 

participate in Tier 2 pursuant to under section 50, 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 20d.

 

     (3) A qualified participant who is appointed after December

 

31, 2014 by the governor to occupy an unclassified position in the

 

state civil service, or to an appointed legislative position

 

pursuant to authority of the legislature, is immediately 50% vested

 

in the employer contributions made on his or her behalf to Tier 2

 

and vests in the remaining employer contributions made on his or

 

her behalf to Tier 2 according to the following schedule:

 

     (a) Upon completion of 1 year of service, 75%.

 

     (b) Upon completion of 2 years of service, 100%.