June 12, 2014, Introduced by Rep. Cavanagh and referred to the Committee on Financial Liability Reform.
A bill to amend 1851 PA 156, entitled
"An act to define the powers and duties of the county boards of
commissioners of the several counties, and to confer upon them
certain local, administrative and legislative powers; and to
prescribe penalties for the violation of the provisions of this
act,"
by amending section 12a (MCL 46.12a), as amended by 2003 PA 219.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 12a. (1) A county board of commissioners at a lawfully
held meeting may do 1 or more of the following:
(a) Provide group life, health, accident and hospitalization,
and disability coverage for a county employee, retired employee, or
an employee of an office, board, or department of the county,
including the board of county road commissioners, and a dependent
of an employee, either with or without cost participation by the
employee, and appropriate the necessary funds for the insurance.
For a county with 100 employees or more, self-insure for health,
accident and hospitalization, and group disability coverage for a
county employee, retired employee, or an employee of an office,
board, or department of the county, including the board of county
road commissioners, and a dependent of an employee, either with or
without cost participation by the employee, and appropriate the
necessary funds.
(b) Adopt and establish a plan by which the county purchases
or participates in the cost of an endowment policy or retirement
annuity for a county employee or an employee of an office, board,
or department of the county, including the board of county road
commissioners, to provide monthly pension or retirement benefits
for each employee 60 years of age or older in an amount not to
exceed $150.00 per month or 2% of the average monthly earnings of
the employee for 5 years immediately before retirement times the
years of service of the employee, whichever is the lesser sum. As
an option, a county board of commissioners may adopt and establish
a plan by which the county pays pension or retirement benefits to a
county employee or an employee of an office, board, or department
of the county, including the board of county road commissioners,
who has been employed for not less than 25 years, or who is 60
years of age or older and has been employed for not less than 5
years, in monthly payments not to exceed 2.5% of the employee's
highest average monthly compensation or earnings received from the
county or county road fund for 5 years of service times the total
number of years of service of the employee, including a fraction of
a year, not to exceed 3/4 of the average final compensation of the
employee. A plan may also pay early retirement benefits at 55 years
of age or older to the extent of actuarially equivalent benefits
not increasing the costs of the plan. Except as provided in
subsection (27), endowment policies, retirement benefits, pensions,
or annuity retirement benefits in excess of the amounts stipulated
in this subdivision may be provided for by a plan of employee
participation to cover the cost of the excess. If the employment or
the pension or retirement benefits of an employee who participated
in the cost of pension or retirement benefits are terminated before
the employee receives pension or retirement benefits equal to the
total amount of the employee's participation, the balance of the
total participation shall be refunded to the employee at the time
of termination, if living, or if deceased, to the employee's heir,
estate, legal representative, or designated beneficiary as provided
in the plan adopted and established by the county board of
commissioners. If a terminated employee is subsequently rehired by
the county, the employee may repay the amount of participation
refunded to the employee upon the employee's termination, together
with compound interest from the date of refund to the dates of
repayment at the rates provided in the plan. As conditions for
repayment, the plan may require return to employment for a period
not to exceed 3 years and may require that repayment be completed
within a period of not less than 1 year following return to
employment. A plan adopted for the payment of retirement benefits
or a pension shall grant benefits to an employee eligible for
pension or retirement benefits according to a uniform scale for all
persons in the same general class or classification. An employee
shall not be denied benefits by termination of his or her
employment after the employee becomes eligible for benefits under
the plan and this section. An endowment policy or annuity purchased
pursuant
to under this section shall be purchased from an insurer
authorized to write endowment policies or annuities in this state.
(2) In a plan adopted under this section, at least 60% of the
total pension or retirement benefit granted to an employee from
county funds shall consist of a percentage not to exceed 2.5% of
the employee's average final compensation times the employee's
years of service and shall be granted to each employee eligible for
retirement under the plan uniformly and without restriction or
limitation other than those prescribed in this section. As used in
this section:
(a) "Average final compensation" means the annual average of
the highest actual compensation received by a county employee,
other than a county employee who is a judge of a municipal court of
record subject to subsection (20) or a judge subject to subsection
(23), during a period of 5 consecutive years of service contained
within the employee's 10 years of service immediately before the
employee's retirement or a period of 5 years of service as
specified in the plan. In a county that adopts a plan for granting
longevity pay, the county board of commissioners may exclude this
longevity pay from average final compensation for the purpose of
computing the rate of employee contribution and the amount of
benefits payable to an employee upon retirement.
(b) "Longevity pay" means increments of compensation payable
at annual or semiannual intervals and based upon years of service
to the county, exclusive of compensation provided for a given class
of positions.
(3) A circuit court stenographer is eligible for membership
in, and the benefits of, a pension or retirement benefit under a
plan
established pursuant to under
this section, or a social
security plan established by the county or 1 of the counties that
pays a portion of the compensation of a circuit court stenographer.
(4) If the employment of a county employee eligible to receive
a
pension or retirement benefit under a plan established pursuant
to
under this section is terminated after the employee has
completed 8 or more years of service in county employment, the
employee shall receive the amount of pension or retirement benefit
to which the employee's service would have entitled the employee
under the plan established, if the employee waives the employee's
right to a refund of the employee's total participation upon the
termination of employment. The payment of pension or retirement
benefits shall begin, as provided in the plan, after the employee
would have become eligible for retirement under the plan had the
employee's employment not been terminated, but not later than 90
days after the employee becomes 65 years of age. The payment of
pension or retirement benefits shall not begin until the employee
has applied for pension or retirement benefits in the manner
prescribed in the plan established.
(5) A plan established under this section may provide for
pension or retirement benefits for a county employee who becomes
totally disabled for work in the county service from any cause,
after not less than 10 years of county employment, to the extent of
the limitations provided in this section. A plan may also provide
for pension or retirement benefits to the extent of the limitations
provided in this section or $400.00 per month, whichever is the
greater sum, for an employee who becomes totally disabled for work
in the county service from causes that are the direct and proximate
result of county employment, to continue for the duration of the
disability or until the employee becomes eligible for retirement
pursuant
to under other provisions of the plan authorized by this
section. A plan may also provide for pension or retirement
benefits, to the extent of the limitations provided in this
section, for the actual dependents of a county employee who dies
while still employed by the county after not less than 10 years of
county employment, or who dies after leaving county employment with
not less than the number of years of service required to vest in
the plan but before becoming eligible to receive a pension or
retirement benefit. A plan may also provide for pension or
retirement benefits to the extent of the limitations provided in
this section or $400.00 per month, whichever is greater, for the
actual dependents of a deceased county employee whose death is the
direct and proximate result of county employment. The plan may
provide that the period from the end of the deceased or disabled
employee's period of service to the date that employee would have
become eligible for retirement be used as service for the sole
purpose of computing the amount of disability or death pension.
(6) As used in this section, "county employee" includes a
bailiff of the district court in the thirty-sixth district who
serves
pursuant to under section 8322 of the revised judicature act
of 1961, 1961 PA 236, MCL 600.8322, and a person who receives more
than 50% of all compensation for personal services, rendered to
governmental units, from a county fund or county road fund, except
a person, other than a bailiff of the district court in the thirty-
sixth district, engaged for special services on a contract or fee
basis. Until December 31, 1979, a plan adopted under this section
may include as a county employee a person on leave of absence from
county employment who is not a member of another retirement system
except as a retirant and who pays or arranges payment of
contributions equal to the contributions that would have been
required to be paid under the plan by both the county and the
employee, based upon the compensation the employee would have
received from the county, if the employee had not taken a leave of
absence or a person who complies with the requirements of such a
provision approved for inclusion in a plan by the county board of
commissioners before January 1, 1976, who shall be considered to be
a county employee during the period of compliance. A plan adopted
under this section may exclude a person who is employed on a
temporary basis and a person employed in a position normally
requiring less than 1,000 hours, or some lesser specified number of
hours, work per year. A bailiff serving in the district court in
the thirty-sixth district is eligible to receive benefits under
this section if a plan has been established by law by which the
cost of benefits is payable from sources including charges on all
legal instruments in which the service of process by a bailiff is
required and earmarked by law for benefits, and contributions made
by
the city of Detroit and each bailiff pursuant to under section
8322(6) of the revised judicature act of 1961, 1961 PA 236, MCL
600.8322. The plan shall include provisions by which a bailiff or
former bailiff who served as bailiff as of January 1, 1967, may
retire after 25 years of service regardless of age, with maximum
benefits to be computed as follows: starting as of January 1, 1969,
the average of any 5 years of earnings of the previous 10 years
served in succession before retirement multiplied by 1.9% times the
years of service; starting as of June 1, 1975, the average of any 5
years of earnings multiplied by 2% times the years of service. As
used in this subsection, "earnings" means the salary and fees,
other
than mileage, received by a bailiff pursuant to under section
8322(5) of the revised judicature act of 1961, 1961 PA 236, MCL
600.8322. The plan shall include provisions by which health,
accident, and hospitalization insurance premiums may be paid out of
the earnings of this fund. These payments shall be made at the
discretion of the pension board of trustees. A county that has a
retirement fund for bailiffs under this section shall annually
review the retirement fund and shall ensure that the fund is
maintained in an actuarially sound condition. Copies of the
actuarial reports shall be provided to the employer designated
under section 8274(2) or (3) of the revised judicature act of 1961,
1961 PA 236, MCL 600.8274, and to the state court administrator.
(7) An employee while receiving a pension or retirement
benefit
because of disability, pursuant to under this section, may
be considered as employed in the county service for the purpose of
retirement under this section.
(8)
A Except as otherwise
provided in this subsection, a
county employee who is included by law in another pension or
retirement system by reason of the compensation the employee
receives from the county may be excluded from a plan established
under this section or included only to the extent of the difference
between benefits granted under this section and the other pension
or retirement system. A county board of commissioners shall not
credit a county employee for service during a period in which the
county employee earns service credit in the other pension or
retirement system.
(9) The county board of commissioners, upon the request of a
county employee, by not less than a 3/5 vote may credit that county
employee with the amount of government service resulting from
employment with the United States government, except military
service, employment with a state, or employment with any of their
political subdivisions under the following conditions:
(a) Employment by the county occurred within 15 years
following the county employee's separation from service of the last
unit of government by which the county employee was employed.
(b) Service rendered before the last break in service of more
than 15 years shall not be credited.
(c) Service that is recognized for the purpose of a deferred
retirement allowance under a retirement system or other employer-
funded retirement benefit plan, except for a retirement benefit
plan under the social security act, chapter 531, 49 Stat. 620, of
the United States government, a state, or a political subdivision
of a state shall not be credited if the county employee retired
under a retirement system of the United States government, a state,
or any of their political subdivisions or until the county employee
irrevocably forfeits the right to the deferred retirement
allowance.
(d) The county employee deposits in the plan established under
this section an amount equal to the aggregate amount of
contributions the county employee would have made had the service
been acquired in the employ of the county, plus interest from the
dates the contributions would have been made to the date of
deposit, at rates determined by the county board of commissioners.
If records are insufficient or unavailable to compute the exact
amount of required deposit, the county board of commissioners may
estimate the amount.
(e) The county employee has 8 or more years of credited
service in county employment, has legal vesting in the county plan,
and deposits in the county employees' retirement system an amount
equal to the aggregate amount of contributions the employer would
have made had the government service being credited under this
section been acquired in the employ of the county.
(10) A plan adopted under this section may provide for annual
or less frequent postretirement redetermination of a pension. The
redetermined amount of pension shall be not greater than the amount
of pension otherwise payable multiplied by the sum of 100% and the
percentage the county board of commissioners determines appropriate
for each full year, excluding a fraction of a year, in the period
from the effective date of payments of the pension and the date as
of which the redetermination is being made. The redetermined amount
shall not be less than the amount of pension otherwise payable. A
provision of this section that limits the amount of a pension shall
not apply to the operation of this subsection redetermining the
amount of a pension. As used in this subsection, "the amount of
pension otherwise payable" means the amount of pension that would
be payable without regard to this subsection. The application of a
provision redetermining pension amounts may be restricted to
pensions that have an effective date of payment either before or
after a specified date.
(11) The cost of pension or retirement benefits for a county
employee under this section may be paid from the same fund from
which the employee receives compensation, and the county board of
commissioners may appropriate the necessary funds to carry out the
purposes of this section. If a county establishes a plan by which
the county pays pension or retirement benefits to an employee
pursuant
to under this section, the county, pursuant to under the
provisions for pension or retirement benefits that are incorporated
in the plan, shall establish and maintain reserves on an actuarial
basis in the manner provided in this subsection sufficient to
finance the pension and retirement and death benefit liabilities
under the plan and sufficient to pay the pension and retirement and
death benefits as they become due. A county that adopts a
retirement plan under this section and establishes reserves on an
actuarial basis shall maintain the reserves as provided in this
subsection. The reserves shall be determined by an actuarial
valuation and established and maintained by yearly appropriations
by the county and contributions by employees. The reserves shall be
established, maintained, and funded to cover the pension and other
benefits provided for in the plan in the same manner and within the
same limits as to time as is provided for Benefit Program B in the
municipal employees retirement system described in former section
14 of the municipal employees retirement act of 1984, 1984 PA 427.
These reserves are trust funds and shall not be used for any other
purpose than the payment of pension, retirement, and other benefits
and
refunds of employee contributions pursuant to under the
plan
established in a county. An employee's contributions shall be kept
and accumulated in a separate fund and used only for the payment of
annuities and refunds to employees. This subsection does not apply
to a county that adopted a retirement plan under this section and
did not establish reserves on an actuarial basis before October 11,
1947.
(12) If a county establishes a plan for the payment of pension
and
retirement benefits to its employees pursuant to under this
section,
the county board of commissioners may shall provide for a
board of trustees to administer the plan and for the manner of
election or appointment of the members of the board of trustees.
The county board of commissioners may grant authority to the board
of trustees to fully administer and operate the plan and to
deposit, invest, and reinvest the funds and reserves of the plan
within the limitations prescribed by the county board of
commissioners in the plan. The county board of commissioners may
authorize the investment of funds of a county retirement plan
established under this section in anything in which the funds of
the state employees' retirement system or the funds of the
municipal
employees retirement system may be invested, pursuant to
under the state employees' retirement act, 1943 PA 240, MCL 38.1 to
38.69, and the municipal employees retirement act of 1984, 1984 PA
427, MCL 38.1501 to 38.1555. A county retirement plan established
under this section may provide for financing, funding, and the
payment of benefits in the same manner and to the same extent as is
provided for in the state employees' retirement act, 1943 PA 240,
MCL 38.1 to 38.69, and the municipal employees retirement act of
1984, 1984 PA 427, MCL 38.1501 to 38.1555, may provide for and
require contributions by county employees, and may permit
additional employee contributions on a voluntary basis.
(13) Upon the approval of the county board of commissioners, a
member who entered the armed service of the United States before
June 1, 1980 or who entered the armed service of the United States
on or after June 1, 1980 during a time of war or emergency
condition as described in section 1 of 1965 PA 190, MCL 35.61, may
elect to receive credited service for not more than 5 years of
active military service. Credit for military service shall be given
upon request and payment to the retirement system of an amount
equal to 5% of the member's full-time or equated full-time annual
compensation for the year in which payment is made multiplied by
the number of years, and fraction of a year, of credited service
that the member elects to purchase up to the maximum. Service shall
not be credited if the service is or would be credited under any
other federal, state, or local publicly supported retirement
system, except for service that is or would be credited under the
federal government for services in the reserve. Service shall not
be credited under this subsection until the member has the number
of years of credited service needed to vest under the plan. Only
completed years and months of armed service shall be credited under
this subsection.
(14)
A Subject to section 33, a
member who enters or entered
any armed service of the United States may purchase credited
service for periods of continuous active duty lasting 30 days or
more, subject to the following conditions:
(a) The county board of commissioners authorizes the purchase
of credited service under this subsection by an affirmative vote of
a majority of the members of the county board of commissioners. The
county board of commissioners shall establish a written policy to
implement the provisions of this subsection in order to provide
uniform application of this subsection to all members of the plan.
(b) The member has at least the number of years of credited
service needed to vest under the plan, not including any credited
service purchased under this subsection and subsection (13).
(c) The member pays the plan 5% of the member's annual
compensation multiplied by the period of credited service being
purchased. As used in this subdivision, "annual compensation" means
the aggregate amount of compensation paid the member during the 4
most recent calendar quarters for each of which the member was
credited 3/12 of a year of credited service.
(d) Fractional months of armed service shall not be recognized
for the purposes of this subsection.
(e) Armed service credited a member under subsection (13)
shall not be the basis of credited service under this section.
(f) Armed service credited a member under this subsection
shall not exceed either 5 years or the difference between 5 years
and the armed service credited the member under subsection (13).
(g) Credited service shall not be granted for periods of armed
service that are or could be used for obtaining or increasing a
benefit from another retirement system, except for service that is
or would be credited under the federal government for services in
the reserve.
(15) As used in this subsection, "transitional public
employment program" means a public service employment program in
the area of environmental quality, health care, education, public
safety, crime prevention and control, prison rehabilitation,
transportation, recreation, maintenance of parks, streets, and
other public facilities, solid waste removal, pollution control,
housing and neighborhood improvements, rural development,
conservation, beautification, veterans' outreach, or any other area
of human betterment and community improvement as part of a program
of comprehensive manpower services authorized, undertaken, and
financed
pursuant to under the former comprehensive employment and
training act of 1973, Public Law 93-203. A person participating in
a transitional public employment program shall not be eligible for
membership in a retirement system or pension plan established under
this section. If the person later becomes a member of a retirement
system or pension plan established under this section within 12
months after the date of termination as a participant in a
transitional public employment program, service credit shall be
given for employment in the transitional public employment program
for purposes of determining a retirement allowance upon the payment
by the person and the person's employer under the transitional
public employment program from funds provided under the former
comprehensive employment and training act of 1973, Public Law 93-
203, as funds permit, to the retirement system of the
contributions, plus regular interest, the person and the employer
would have paid had the employment been rendered in a position
covered by this section. During the person's employment in the
transitional public employment program, the person's employer shall
provide an opportunity by payroll deduction for the person to make
his or her employee contribution to the applicable pension system.
To provide for the eventual payment of the employer's contribution,
the person's employer shall during this same period place in
reserve a reasonable but not necessarily an actuarially determined
amount equal to the contributions that the employer would have paid
to the retirement system for those employees in the transitional
public employment program as if they were members under this
section, but only for that number of employees that the employer
determined would transfer from the transitional public employment
program into positions covered by this section. If the funds
provided under the former comprehensive employment and training act
of 1973, Public Law 93-203, are insufficient, the remainder of the
employer contributions shall be paid by the person's current
employer.
(16) Subsection (15) does not exclude the participant in a
transitional public employment program from the accident,
disability, or other benefits available to members of the
retirement system covered by this section.
(17) If a probate judge who is a member of a plan established
under this section contributes for 20 years or more, the county
board of commissioners may allow the probate judge to cease further
contributions.
(18) An employee of the circuit court in the third judicial
circuit, the common pleas court of the city of Detroit, or the
recorder's court of the city of Detroit who became an employee of
the state judicial council on September 1, 1981, and who was 44
years of age or older as of that date, and who will have
accumulated 25 or more years of service credit by September 1,
1987, shall continue to be eligible for membership in, and the
benefits of, a pension or retirement benefit plan established
pursuant
to under this section in the same manner as the employee
was eligible before September 1, 1981. A person who was an employee
of the circuit court in the third judicial circuit, the common
pleas court of the city of Detroit, or the recorder's court of the
city of Detroit on August 31, 1981, who last entered county
employment before November 2, 1956, who became an employee of the
state judicial council on September 1, 1981, and who accumulated
not less than 24 years of service credit by August 31, 1981, shall
continue to be eligible for membership in, and the benefits of, a
pension
or retirement benefit plan established pursuant to under
this section in the same manner as the employee was eligible before
September 1, 1981. An election to continue to be a member of a
pension
or retirement benefit plan established pursuant to under
this section as authorized by section 594(2) of the revised
judicature act of 1961, 1961 PA 236, MCL 600.594, as that section
read on February 8, 1985, or former section 36(2) of 1919 PA 369,
is not effective unless the employee has made the election in the
manner prescribed by those sections and has made the payments
required by those sections.
(19) A plan adopted under this section may provide that an
employee of the circuit court in the third judicial circuit, the
common pleas court of the city of Detroit, or the recorder's court
of the city of Detroit who is a member of the Wayne county
employees' retirement system on August 31, 1981, who becomes an
employee of the state judicial council and a member of the state
employees' retirement system on September 1, 1981, receive a
benefit based on the annual average of the highest actual
compensation received by the employee during a period of 5 years of
county or state service.
(20) Beginning September 1, 1981, for determining the
retirement benefit for a county employee who is a judge of a
municipal
court of record pursuant to under
subsection (2),
"average final compensation" means the annual average of the
highest actual compensation received by the judge as additional
salary pursuant to former section 13(2) of 1919 PA 369, or section
9932(3) of the revised judicature act of 1961, 1961 PA 236, MCL
600.9932, during a period of 5 years of service as specified in the
plan. This subsection shall not be construed to diminish or impair
an accrued financial benefit.
(21) Beginning September 1, 1981, for each county employee who
is a judge of a municipal court of record, or of the circuit or
district court, the sum of the average final compensation
determined
for that county employee pursuant to under this section
and the final salary determined for that county employee as a
member of the state of Michigan judges' retirement system created
by former 1951 PA 198, or as a member of the Michigan judges
retirement system created by the judges retirement act of 1992,
1992 PA 234, MCL 38.2101 to 38.2670, shall not exceed the
employee's total annual judicial salary payable from all sources at
the time of his or her retirement. This subsection shall not be
construed to diminish or impair an accrued financial benefit.
(22) Beginning September 1, 1981, for each county employee who
is a judge of the probate court, the sum of the average final
compensation
calculated for that employee pursuant to under this
section and the final salary calculated for that employee as a
member of the state of Michigan probate judges retirement system
created by former 1954 PA 165 or as a member of the Michigan judges
retirement system created by the judges retirement act of 1992,
1992 PA 234, MCL 38.2101 to 38.2670, shall not exceed the
employee's total annual judicial salary payable from all sources at
the time of his or her retirement. This subsection shall not be
construed to diminish or impair an accrued financial benefit.
(23) Beginning September 1, 1981, for determining a retirement
benefit
pursuant to under subsection (2) for a county employee who
is
a judge who receives an annuity pursuant to under section
14(5)
of
former 1951 PA 198 or pursuant to under section 503(2)(c) of
the
judges retirement act of 1992, 1992 PA 234, MCL 38.2503, "average
final compensation" means the difference between the judge's total
annual salary payable from all sources on August 31, 1981, and the
judge's state base salary payable on August 31, 1981. This
subsection shall not be construed to diminish or impair an accrued
financial benefit.
(24) Beginning January 1, 1983, the sum of the final salary
determined for each county employee who is a judge of the probate
court used as the basis for determining the judge's retirement
allowance
as a member of a retirement system established pursuant
to
under this section and the salary or compensation figure
used as
the basis for determining the judge's retirement allowance as a
member of the state of Michigan judges' retirement system created
by former 1951 PA 198 or as a member of the Michigan judges
retirement system created by the judges retirement act of 1992,
1992 PA 234, MCL 38.2101 to 38.2670, shall not exceed the judge's
total annual salary payable from all sources at the time of his or
her retirement. This subsection shall not be construed to diminish
or impair an accrued financial benefit.
(25) The county board of commissioners, upon the request of a
county employee, by not less than a 3/5 vote may credit that county
employee with the amount of membership service that the county
employee was previously credited with by the retirement system
established under this section under the following conditions:
(a) The membership service previously credited to the county
employee was service rendered for the same county.
(b) Service that is recognized for the purpose of a deferred
retirement allowance under a retirement system or other employer-
funded retirement benefit plan, except for a retirement benefit
plan under the social security act, chapter 531, 49 Stat. 620, of
the United States government, a state, or a political subdivision
of a state shall not be credited if the county employee retired
under a retirement system of the United States government, a state,
or any of their political subdivisions or until the county employee
irrevocably forfeits the right to the deferred retirement
allowance.
(c) The county employee deposits in the plan established under
this section an amount equal to the aggregate amount of
contributions the county employee made at the time of the previous
membership service plus interest from the date of withdrawal of the
accumulated contributions to the date of deposit, at rates
determined by the county board of commissioners. If records are
insufficient or unavailable to compute the exact amount of required
deposit, the county board of commissioners may estimate the amount.
(d) The county employee deposits in the county employees'
retirement system an amount equal to the aggregate amount of
contributions the employer made at the time of the previous
membership service plus interest from the date of separation to the
date of deposit, at rates determined by the county board of
commissioners.
(26) A person participating in a program described in this
subsection is not eligible for membership in a retirement system or
pension plan established under this section. In addition, that
person shall not receive service credit for the employment
described in this subsection even though the person subsequently
becomes or has been a member of the retirement system. This
subsection applies to all of the following:
(a) A person, not regularly employed by the county, who is
employed by the county through participation in a program
established
pursuant to under the job training partnership act,
Public Law 97-300, 96 Stat. 1322.
(b) A person, not regularly employed by the county, who is
employed by the county through participation in a program
established
pursuant to under the Michigan opportunity and skills
training program, first established under sections 12 to 23 of 1983
PA 259.
(c) A person, not regularly employed by the county, who is
employed by the county through participation in a program
established
pursuant to under the Michigan community service corps
program, first established under sections 25 to 35 of 1983 PA 259
and sections 148 to 160 of 1984 PA 246.
(d) A person, not regularly employed by the county, who is
hired by the county to administer a program described in
subdivision (a), (b), or (c).
(27) If a county enters into a collective bargaining agreement
pursuant
to under 1947 PA 336, MCL 423.201 to 423.217, that
provides for retirement benefits that are in excess of the
retirement benefits otherwise authorized to be provided under this
section for employees of the county who are covered by a plan under
this section, then the county board of commissioners may amend or
adopt a plan under this section to provide those benefits to
employees who are members of the bargaining unit covered by the
agreement, and may, after December 31, 1987, amend or adopt a plan
under this section to provide those benefits to other employees of
the county.
(28) One of the following conditions applies to a retirant who
is receiving a pension or retirement benefit from a plan under this
section if the retirant becomes employed by a county that has
established a plan under this section:
(a) Payment of the pension or retirement benefit to the
retirant shall be suspended if the retirant is employed by the
county from which the retirant retired and the retirant does not
meet the requirements of subdivision (b) or (d). Suspension of the
payment of the pension or retirement benefit shall become effective
the first day of the calendar month that follows the sixtieth day
after the retirant is employed by the county. Payment of the
pension or retirement benefit shall resume on the first day of the
calendar month that follows termination of the employment. Payment
of the pension or retirement benefit shall be resumed without
change in amount or conditions by reason of the employment. The
retirant shall not be a member of the plan during the period of
employment.
(b) Payment of the pension or retirement benefit to the
retirant shall continue without change in amount or conditions by
reason of employment by the county from which the retirant retired
if all of the following requirements are met:
(i) The retirant meets 1 of the following requirements:
(A) For any retirant, is employed by the county for not more
than 1,000 hours in any 12-month period.
(B) For a retirant who was not an elected or appointed county
official at retirement, is elected or appointed as a county
official for a term of office that begins after the retirant's
retirement allowance effective date.
(C) For a retirant who was an elected or appointed county
official at retirement, is elected or appointed as a county
official to a different office from which the retirant retired for
a term of office that begins after the retirant's retirement
allowance effective date.
(D) For a retirant who was an elected or appointed county
official at retirement, is elected or appointed as a county
official to the same office from which the retirant retired for a
term of office that begins 2 years or more after the retirant's
retirement allowance effective date.
(ii) The retirant is not eligible for any benefits from the
county other than those required by law or otherwise provided to
the retirant by virtue of his or her being a retirant.
(iii) The retirant is not a member of the plan during the period
of reemployment, does not receive additional retirement credits
during the period of reemployment, and does not receive any
increase in pension or retirement benefits because of the
employment under this subdivision.
(c) Payment of the pension or retirement benefit to the
retirant shall continue without change in amount or conditions by
reason of the employment if the retirant becomes employed by a
county other than the county from which the retirant retired. For
the purposes of membership and potential benefit entitlement under
the plan of the other county, the retirant shall be considered in
the same manner as an individual with no previous record of
employment by that county.
(d) Payment of the pension or retirement benefit to the
retirant shall continue without change in amount or conditions by
reason of employment by the county from which the retirant retired
if the retirant was an employee of the state judicial council on
September 30, 1996, and becomes a county-paid employee of the
recorder's court of the city of Detroit or the third judicial
circuit of the circuit court on October 1, 1996.
(29) A county may increase the percentage of the highest
average monthly compensation or earnings that was used to calculate
the pension or retirement benefit under subsection (1)(b) of a
person receiving a pension or retirement benefit under this section
on the date the county increases the percentage of compensation or
earnings. The county shall recalculate the pension or retirement
benefit using the increased percentage of compensation or earnings.
The person receiving the pension or retirement benefit is eligible
to receive an adjusted pension or retirement benefit based upon the
recalculation effective the first day of the month following the
date the county increases the percentage of compensation or
earnings under this subsection.
(30) The payment of pension or retirement benefits under a
plan
established pursuant to under
this section is subject to an
eligible domestic relations order under the eligible domestic
relations order act, 1991 PA 46, MCL 38.1701 to 38.1711.
(31) If a county retirement plan established under this
section provides an optional form of payment of a retirement
allowance and if a retirant receiving a reduced retirement
allowance under that plan is divorced from the spouse who had been
named the retirant's survivor beneficiary, the election of a
reduced retirement allowance form of payment shall be considered
void by the retirement system if the judgment of divorce or award
or order of the court, or an amended judgment of divorce or award
or order of the court dated after July 18, 1991 provides that the
election of a reduced retirement allowance form of payment is to be
considered void by the retirement system and the retirant provides
a certified copy of the judgment of divorce or award or order of
the court, or an amended judgment of divorce or award or order of
the court, to the retirement system. If the election of a reduced
retirement allowance form of payment is considered void by the
retirement system under this subsection, the retirant's retirement
allowance shall revert to a straight life retirement allowance,
including postretirement adjustments, if any, subject to an award
or order of the court. The retirement allowance shall revert to a
straight life retirement allowance under this subsection effective
the first of the month after the date the retirement system
receives a certified copy of the judgment of divorce or award or
order of the court. This subsection does not supersede a judgment
of divorce or award or order of the court in effect on July 18,
1991. This subsection does not require the retirement system to
distribute or pay retirement assets on behalf of a retirant in an
amount that exceeds the actuarially determined amount that would
otherwise become payable if a judgment of divorce had not been
rendered.
(32) If a county board of commissioners of a county that has a
population of more than 400,000 but less than 800,000 has an
employee credit union organized under the credit union act or
former 1925 PA 285, the county board of commissioners may include
as a member of a plan under this section a past or present employee
of the credit union, if that past or present employee has 5 or more
years of service credit with that credit union on or before June
30, 1990.
(33) The county board of commissioners shall not credit a
county employee for service purchased under a plan adopted under
this section unless the service being purchased is followed by 5
years of service for that county.
(34) A county board of commissioners that has established a
plan under this section shall not add a new benefit to the plan
unless all of the following are met:
(a) The board of trustees that administers the plan approves
the proposed new benefit.
(b) The county is current in the payment of all employer and
member contributions.
(c) The plan is 100% funded according to the most recent
actuarial valuation under subsection (11).
(35) (33)
The county board of commissioners
shall establish a
written policy to implement the provisions of this section in order
to provide uniform application of this section to all members of
the plan.