Bill Text: MI HB4481 | 2011-2012 | 96th Legislature | Introduced
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-Introduced.html
HOUSE BILL No. 4481
March 23, 2011, Introduced by Rep. Gilbert and referred to the Committee on Tax Policy.
A bill to amend 1980 PA 300, entitled
"The public school employees retirement act of 1979,"
by amending section 46 (MCL 38.1346), as amended by 2002 PA 94.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
46. (1) A 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) (2)
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) (3)
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.
