Bill Text: MI HB4285 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Retirement; public school employees; multiplier; increase if individual retires before a certain date. Amends sec. 84 of 1980 PA 300 (MCL 38.1384) & adds sec. 81b.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-02-18 - Printed Bill Filed 02/18/2009 [HB4285 Detail]
Download: Michigan-2009-HB4285-Introduced.html
HOUSE BILL No. 4285
February 17, 2009, Introduced by Rep. Miller 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 84 (MCL 38.1384), as amended by 1989 PA 194,
and by adding section 81b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 81b. (1) Notwithstanding section 81 and subject to
subsection (4), a member may retire with a retirement allowance
computed according to section 84(7) if all of the following apply:
(a) The member files a written application with the retirement
board and the reporting unit on or after April 1, 2009 and on or
before March 31, 2010, requesting a retirement allowance effective
date that is at least 30 days after the date on the written
application and on or before June 30, 2010.
(b) The member was working as a public school employee
immediately preceding the retirement allowance effective date.
(c) The member is otherwise eligible to retire under section
81.
(d) If a member is employed in a critical shortage discipline,
as compiled by the state superintendent of public instruction, as
of October 8, 2008, the member may extend his or her retirement
date 1 year beyond June 30, 2010.
(e) The member is selected to retire under subsection (4).
(2) A member may withdraw a written application on or before
March 15, 2010. A written application submitted by a member and not
withdrawn on or before March 15, 2010 is irrevocable.
(3) A member who retires under this section agrees to have his
or her pension suspended for the period of employment if the member
is rehired by the public school system as an independent
contractor, either as an individual or through an employment
agency.
(4) The number of members who may retire under this subsection
and section 84(7) shall be limited to a number that limits the
aggregate liability to the retirement system to no more than
$1,500,000,000.00 of the present value of future benefits
attributable to the increased multiplier authorized under section
84(7) and incurred in the applicable plan year. Members who
otherwise qualify under this section shall be selected according to
age and years of actual service as a member with the greatest
number of actual years of service as a member receiving first
preference and the date the application is received with the
earliest dated application receiving first preference. All
determinations concerning aggregate liability and members who are
permitted to retire under this section shall be made by the
retirement system. The aggregate liability cap shall be applicable
on a school year basis so that a member who is not permitted to
retire as of June 30, 2009 may reapply for consideration to retire
no later than June 30, 2010. If a member is not permitted to retire
because of application of this section, the member's written
application is considered to be withdrawn in a timely manner.
Sec.
84. (1) Except as provided in subsection subsections (2)
and (7), upon the member's retirement from service as provided in
section 81, a member shall receive a retirement allowance that
equals the product of the member's total years, and fraction of a
year, of credited service multiplied by 1.5% of the member's final
average compensation. A member shall not be allowed to use more
than 15 years of out of system public education service, or more
out of system public education service than service performed under
this act or former Act No. 136 of the Public Acts of 1945 unless,
before July 1, 1974, the member applied for out of system public
education service credit based upon payment of contributions for
the service as required under section 69, or former acts in which
case the total out of system public education service credited, not
to exceed 15 years, shall be used to compute the member's
retirement allowance if the minimum service requirements performed
under this act or former acts or as a state employee under the
state
employees' retirement act, Act No. 240 of the Public Acts of
1943,
as amended 1943 PA 240, MCL
38.1 to 38.69, are met. Credit
for state of Michigan service shall be on the same basis for
eligibility for retirement provided in this act as if the service
were performed under this act, former Act No. 136 of the Public
Acts of 1945, former Act No. 56 of the Public Acts of 1941, or
former Act No. 184 of the Public Acts of 1937.
(2) If a member having less than 30 years credited service
retires before the member's sixtieth birthday as provided in
section 81, the member's retirement allowance provided in
subsection (1) shall be reduced 1/2 of 1% for each month, and
fraction of a month, within the period from the effective date of
the member's retirement to the date of the member's sixtieth
birthday, and shall continue at that same percentage after becoming
60 years of age.
(3) 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 former
Act No. 136 of the Public Acts of 1945, applicable to a member who
retired before July 1, 1974 and before attainment of age 60, shall
not apply to a member who retired before that date, at age 55 or
more, having 30 or more years of credited service. The retirement
allowance shall be recalculated disregarding the reduction and the
person receiving the retirement allowance shall be eligible to
receive an adjusted retirement allowance based on the recalculation
beginning January 1, 1986, but shall not be eligible to receive the
adjusted amount attributable to any month beginning before January
1, 1986.
(4) The reduction provided for in subsection (2) shall not
apply to a member who retires under either section 86 or 87, or to
a retirement allowance beneficiary who is granted an allowance
under section 43c(c), 89, or 90.
(5) The retirement allowance of a person who satisfies the
requirements of this subsection shall be recalculated based on 1.5%
of final average compensation times years of credited service. The
person receiving the retirement allowance shall be eligible to
receive an adjusted retirement allowance based on the recalculation
beginning January 1, 1986, but shall not be eligible to receive the
adjusted amount attributable to any month beginning before January
1, 1986. A retirement allowance shall be recalculated under this
subsection if 1 of the following applies:
(a) The retirement allowance was payable to a retirant or
retirement allowance beneficiary under chapter II of former Act No.
136 of the Public Acts of 1945 and the retirement allowance
effective date was on or after July 1, 1956 but before July 1,
1974.
(b) The retirement allowance was payable to a plan II retirant
or retirement allowance beneficiary under chapter I of former Act
No. 136 of the Public Acts of 1945 and the retirement allowance
effective date was before July 1, 1974.
(6) A member retiring pursuant to section 81 who acquires at
least 5 years of combined credited service under this act or under
former Act No. 136 of the Public Acts of 1945, and who is already
in receipt of a retirement allowance under chapter II of former Act
No. 136 of the Public Acts of 1945, may elect to return to the
retirement system any retirement allowance payments received, and
receive a single retirement allowance computed on the combined
years of service credited under this act and any former act.
(7) A member who retires under section 81b shall receive a
retirement allowance equal to the member's number of years and
fraction of a year of credited service multiplied by 2.0% of his or
her final average compensation. Except for the calculation provided
in this subsection, the member's retirement allowance is subject to
reduction under this section.
