Bill Text: MI HB5092 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Retirement; public school employees; funding of required contribution amount by employer; clarify. Amends sec. 131 of 1980 PA 300 (MCL 38.1431).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2017-11-28 - Referred To Committee On Education [HB5092 Detail]
Download: Michigan-2017-HB5092-Engrossed.html
HB-5092, As Passed House, November 9, 2017
SUBSTITUTE FOR
HOUSE BILL NO. 5092
A bill to amend 1980 PA 300, entitled
"The public school employees retirement act of 1979,"
by amending section 131 (MCL 38.1431), as amended by 2017 PA 92.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 131. (1) This section is subject to the vesting
requirements of section 132.
(2) Unless a qualified participant who is also a member of
Tier 1 affirmatively elects not to contribute or elects to
contribute a lesser amount, the qualified participant who is also a
member of Tier 1 shall contribute 2% of his or her compensation to
his or her Tier 2 account. The qualified participant's employer
shall make a contribution to the qualified participant's Tier 2
account in an amount equal to 50% of the first 2% of compensation
contributed by the qualified participant under this subsection.
(3) A qualified participant may make contributions in addition
to contributions made under subsection (2) to his or her Tier 2
account as permitted by the department and the internal revenue
code.
(4) On the written determination of the director of the office
of retirement services, an employee of an employer that is not a
qualified participant may elect to make contributions to a Tier 2
account as permitted by the department and the internal revenue
code. An employee as described in this subsection is treated as a
qualified participant under this article for the limited purposes
of his or her Tier 2 account.
(5) On the written determination of the director of the office
of retirement services, an employer may annually elect to make
additional matching contributions, including those in addition to
matching contributions made under subsections (2) and (6), to an
employee's Tier 2 account as permitted by the plan document and the
internal revenue code. Matching contributions under this subsection
must be made in amounts equal to 50% of the contributions made by
the employee not to exceed the first 4% of contributions made in
whole percentages only, for any employee in addition to amounts
that are already matched under this section, if any.
(6) Except as otherwise provided in section 81d, unless a
qualified participant who is only a Tier 2 qualified participant
due to an election made under section 81d(1) affirmatively elects
not to contribute or elects to contribute a lesser amount, the
qualified participant shall contribute 6% of his or her
compensation to his or her Tier 2 account. Until January 31, 2018,
the qualified participant's employer shall make a contribution to
the qualified participant's Tier 2 account in an amount equal to
50% of the first 6% of compensation contributed by the qualified
participant under this subsection. Beginning February 1, 2018, the
qualified participant's employer shall make a contribution to the
qualified participant's Tier 2 account in an amount equal to 100%
of the first 3% of compensation contributed by the qualified
participant under this subsection. Beginning February 1, 2018, all
contributions made by an employer under this subsection must be
paid by specific appropriation from the state school aid fund
established by section 11 of article IX of the state constitution
of 1963, assuming 100% participation by all qualified participants.
The legislature shall annually appropriate money for the specific
appropriation described in this subsection.
(7) For a qualified participant who is only a Tier 2 qualified
participant under section 81d, beginning with the first available
pay period after October 1, 2017, the qualified participant's
employer shall make a contribution to the qualified participant's
Tier 2 account in an amount equal to 4% of the qualified
participant's compensation.
