Bill Text: MI HB4086 | 2019-2020 | 100th Legislature | Introduced

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Bill Title: Retirement: public school employees; computing retirement allowance based on employee organization professional services leave or released time; modify. Amends sec. 71 of 1980 PA 300 (MCL 38.1371).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-01-24 - Bill Electronically Reproduced 01/24/2019 [HB4086 Detail]

Download: Michigan-2019-HB4086-Introduced.html

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HOUSE BILL No. 4086

 

 

January 24, 2019, Introduced by Rep. Hornberger 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 71 (MCL 38.1371), as amended by 2017 PA 92.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 71. (1) Until September 29, 2017 at 5 p.m. Eastern

 

Daylight Saving Time, the retirement board shall grant service

 

credit for the time a member is on a sabbatical leave authorized by

 

a reporting unit, if the member returns to regular employment with

 

the same reporting unit and acquires 1 year or more of subsequent

 

service credit with that same reporting unit and if the member

 

acquired 5 or more years of credited service with the reporting

 

unit immediately before the sabbatical leave.

 

     (2) If the sabbatical leave described in subsection (1) is

 

granted before July 1, 1981, the reporting unit, if the reporting

 

unit had a noncontributory plan at the time the sabbatical leave is

 

granted, or the member, if the reporting unit has a contributory

 

plan at the time the sabbatical leave is granted, shall pay to the

 

system for each year of sabbatical leave credit an amount equal to

 

5% of the member's compensation earned in the school fiscal year

 

immediately before the school fiscal year in which the sabbatical

 

leave is granted , together with and regular interest from the end

 

of the school fiscal year in which the sabbatical leave was or is

 

granted to the earlier of the following dates following the date of

 

payment, the first day of the school fiscal year beginning after

 

the date of payment or the first day of the seventh month of the

 

school fiscal year in which the payment is made, whichever is

 

earlier. If the reporting unit makes the payment required by this

 

subsection, the reporting unit also shall pay the required

 

interest. If the member makes the payment required by this

 

subsection, the member also shall pay the required interest.

 

     (3) If the sabbatical leave described in subsection (1) is

 

granted after June 30, 1981, the member shall pay an amount equal

 

to 5% of the member's full-time or equated full-time compensation

 

earned in the school fiscal year immediately before the school

 

fiscal year in which payment is made for each year of service

 

credit the member elects to purchase. In computing payment under

 

this subsection, the compensation amount used, except as otherwise

 

provided in this subsection, must not be less than the highest

 

school fiscal year compensation the member earned from the

 

reporting unit that granted the sabbatical leave. If the

compensation amount used for computing payment under this

 

subsection exceeds the member's final average compensation

 

determined at the time of retirement, the payment required under

 

this subsection must be recomputed using the member's final average

 

compensation and a refund must be made based on the recomputation.

 

     (4) If, before October 31, 1980, either the reporting unit or

 

the member has contributed 5% of the member's compensation for the

 

school fiscal year in which the sabbatical leave was granted in

 

order to purchase service credit for that sabbatical leave, a

 

further payment for the purchase of service credit for that

 

sabbatical leave shall is not be required. If a member has paid the

 

amount required under subsection (2) for the purchase of service

 

credit for sabbatical leave, but later receives a refund of that

 

amount, the member, not the reporting unit, shall repay the amount

 

with regular interest as required by subsection (2) if the member

 

elects to purchase service credit for the sabbatical leave.

 

     (5) Effective October 1, 1981, except as otherwise provided in

 

subsection (8), the retirement board shall grant service credit for

 

the time a member is on either an employee organization

 

professional services leave or employee organization professional

 

services released time authorized by a reporting unit if all of the

 

following conditions are satisfied, as applicable:

 

     (a) For a member who is on either a professional services

 

leave or professional services released time that first began

 

before October 1, 1996, which leave or released time is renewed

 

annually by the reporting unit, the member is included on the

 

reporting unit's reports required by section 42(6) and

compensation, service, contribution, and other requirements are

 

reported on the same basis as for those members of the reporting

 

unit who were not granted an employee organization professional

 

services leave or employee organization professional services

 

released time.

 

     (b) For a member who is on either a professional services

 

leave or professional services released time, which leave or

 

released time does not meet the requirements of subdivision (a),

 

the member is included on the reporting unit's reports in the

 

manner required by subdivision (a), except that compensation is

 

reported at the rate of compensation paid to the member by the

 

reporting unit immediately preceding the date the member commenced

 

the professional services leave or professional services released

 

time along with the normal and customary compensation increases

 

that would have been paid to the member by the reporting unit had

 

the member remained in the same position held at the reporting unit

 

immediately preceding the date the member commenced the leave or

 

released time. However, if the member was not working a full 12-

 

month period for the reporting unit immediately preceding the date

 

the member commenced the professional services leave or

 

professional services released time and is working a full 12-month

 

period for the public school employee organization, the rate of

 

compensation paid to the member by the reporting unit immediately

 

preceding the date the member commenced the leave or released time

 

may be increased proportionately to reflect the additional time

 

worked for the public school employee organization. That adjusted

 

compensation, along with the normal and customary compensation

increases otherwise allowed in this subdivision, must then be

 

reported as required in this subdivision.

 

     (c) For a member who is on either a professional services

 

leave or professional services released time that first began

 

before October 1, 1996, which leave or released time is renewed

 

annually by the reporting unit, the reporting unit remits the

 

amount required by section 42 and the percentage of aggregate

 

annual compensation provided from the state school aid fund for

 

current service, if any, the percentage determined for unfunded

 

accrued service as required by section 41, and the employer's share

 

of social security contributions if the reporting unit is

 

responsible for remitting the employee's share of social security

 

contributions.

 

     (d) For a member who is on either a professional services

 

leave or professional services released time, which professional

 

services leave or professional services released time does not meet

 

the requirements of subdivision (c), the reporting unit remits the

 

amounts required by subdivision (c) based on the rate of

 

compensation paid to the member by the reporting unit immediately

 

preceding the date the member commenced the professional services

 

leave or professional services released time along with the normal

 

and customary compensation increases that would have been paid to

 

the member by the reporting unit had the member remained in the

 

same position held at the reporting unit immediately preceding the

 

date the member commenced the leave or released time. However, if

 

the member was not working a full 12-month period for the reporting

 

unit immediately preceding the date the member commenced the

professional services leave or professional services released time

 

and is working a full 12-month period for the public school

 

employee organization, the rate of compensation paid to the member

 

by the reporting unit immediately preceding the date the member

 

commenced the leave or released time may be increased

 

proportionately to reflect the additional time worked for the

 

public school employee organization. That adjusted compensation,

 

along with the normal and customary compensation increases

 

otherwise allowed in this subdivision, must then be reported as

 

required in this subdivision.

 

     (6) The reporting unit must be reimbursed those sums paid to

 

the retirement board under subsection (5) by the member or the

 

public school employee organization shall, on a current basis,

 

reimburse the reporting unit the amounts paid to the retirement

 

board under subsection (5). A member who has credited service as an

 

employee of a school district of the first class, as described in

 

part 6 of the revised school code, 1976 PA 451, MCL 380.401 to

 

380.485, 380.483a, for a leave of absence effective before October

 

1, 1981, shall must continue to receive credit based on the law of

 

this state in effect at the time the leave of absence was initially

 

effective.

 

     (7) After September 29, 2017 at 5 p.m. Eastern Daylight Saving

 

Time, a member is not eligible to initiate a service credit

 

purchase under subsections (1) and (3).

 

     (8) Notwithstanding section 4(10) and (11), the retirement

 

board shall not grant service credit under subsection (5) for any

 

time, after the effective date of the amendatory act that added

this subsection, that a member is on either an employee

 

organization professional services leave, professional services

 

leave, employee organization professional services released time,

 

or professional services released time.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.