Bill Text: MI HB4422 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Retirement; public school employees; allowing a retirant to be employed at a reporting unit as school renewal coach or high impact leadership facilitator under certain conditions without forfeiting retirement allowance or health care coverage; provide for. Amends sec. 61 of 1980 PA 300 (MCL 38.1361).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-05-10 - Assigned Pa 141'18 With Immediate Effect [HB4422 Detail]
Download: Michigan-2017-HB4422-Engrossed.html
HB-4422, As Passed Senate, April 25, 2018
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4422
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
House Bill No. 4422 as amended April 24, 2018
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)<<, or (13)>>. 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
House Bill No. 4422 as amended April 24, 2018
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.
<<(13) Subsection (1) does not apply to a retirant who retires after June 30, 2010 and on or before the effective date of this subsection and who, following a bona fide termination, becomes employed by a reporting unit as a school renewal coach or high impact leadership facilitator as part of a school leadership support program that is funded by a federal grant awarded before the effective date of this subsection and that meets the requirements of subsection (14). 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 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 school renewal coaches or high impact leadership 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 school renewal coach or high impact leadership facilitator and the total earnings paid to the school renewal coach or high impact leadership facilitator for that reporting period.
(14) Subsection (13) applies to retirants employed as part of a program that supports teams of school principals and teacher leaders in elementary schools by doing all of the following:
(a) Providing intense professional development and support, and money, for renewal projects for teams of school leaders in a number of project schools that are implementing a set of new literacy essentials.
(b) Placing a trained team of school renewal coaches or high impact leadership facilitators in each project school.
(c) Providing a lower level of professional development support and funding for leaders in additional schools.
(d) Applying a set of proven school leadership practices for school renewal and sustainable implementation.
(e) Providing training, support, and oversight for the school renewal coaches or high impact leadership facilitators as a coordinator or supervisor of that work.>>
