Bill Text: MI HB4481 | 2011-2012 | 96th Legislature | Chaptered


Bill Title: Retirement; public school employees; tax exemption for pensions; eliminate. Amends sec. 46 of 1980 PA 300 (MCL 38.1346).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2011-05-26 - Assigned Pa 42'11 With Immediate Effect [HB4481 Detail]

Download: Michigan-2011-HB4481-Chaptered.html

Act No. 42

Public Acts of 2011

Approved by the Governor

May 25, 2011

Filed with the Secretary of State

May 25, 2011

EFFECTIVE DATE: May 25, 2011

STATE OF MICHIGAN

96TH LEGISLATURE

REGULAR SESSION OF 2011

Introduced by Rep. Gilbert

ENROLLED HOUSE BILL No. 4481

AN ACT to amend 1980 PA 300, entitled “An act to provide a retirement system for the public school employees of this state; to create certain funds for this retirement system; to provide for the creation of a retirement board within the department of management and budget; to prescribe the powers and duties of the retirement board; to prescribe the powers and duties of certain state departments, agencies, officials, and employees; to prescribe penalties and provide remedies; and to repeal acts and parts of acts,” by amending section 46 (MCL 38.1346), as amended by 2002 PA 94.

The People of the State of Michigan enact:

Sec. 46. (1) Except as otherwise provided in this section, a retirement allowance, an optional benefit, or any other benefit accrued or accruing to a person under this act, the reserves created by this act, and the money, investments, or income of those reserves are exempt from state, county, municipal, or other local tax and are subject to the public employee retirement benefit protection act, 2002 PA 100, MCL 38.1681 to 38.1689.

(2) Beginning January 1, 2012, a retirement allowance, an optional benefit, or any other benefit accrued or accruing to a person under this act is subject to state tax upon distribution to the person from the various funds created by this act.

(3) The retirement system may offset retirement benefits or refunds payable under this act against amounts owed to the retirement system by a member, retirant, retirement allowance beneficiary, or refund beneficiary.

(4) If the retirement system is required by the federal government pursuant to a court order to transmit a part of a member’s contributions standing to the member’s credit in the reserve for employee contributions to a federal agency, the service credit that is covered by the payment shall be forfeited in the same manner as if the employee had requested and been paid a refund of the member’s most recent contributions.

This act is ordered to take immediate effect.

Clerk of the House of Representatives

Secretary of the Senate

Approved

Governor