Bill Text: MI HB5834 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Retirement: state police; membership in the retirement system of a conservation officer first hired after certain date; provide for, and allow for purchasing service credit for certain conservation officers' service under the state employees' retirement system. Amends sec. 4 of 1986 PA 182 (MCL 38.1604) & adds sec. 24c.
Spectrum: Partisan Bill (Democrat 42-0)
Status: (Introduced - Dead) 2022-02-24 - Bill Electronically Reproduced 02/23/2022 [HB5834 Detail]
Download: Michigan-2021-HB5834-Introduced.html
HOUSE BILL NO. 5834
A bill to amend 1986 PA 182, entitled
"State police retirement act of 1986,"
by amending section 4 (MCL 38.1604), as amended by 2018 PA 674, and by adding section 24c.
the people of the state of michigan enact:
Sec. 4. (1) "Member", except where the context otherwise requires, means an either of the following:
(a) An employee of the department of state police who has subscribed to the constitutional oath of office.
(b) A conservation officer described in section 55(3) of the state employees' retirement act, 1943 PA 240, MCL 38.55.
(2) "Officer" means a nonexclusively represented member of the retirement system.
(3) "Qualified participant" means an individual who first becomes a member on or after June 10, 2012 and who is also a participant of Tier 2.
(4) "Regular interest" means a rate or rates per annum, compounded annually, as the retirement board determines. For the purposes of employee refunds, the interest rate payable must not exceed 4% per annum, compounded annually.
(5) "Retirant" means a member who separates from service and retires with a retirement allowance payable from the appropriate reserve of the retirement system.
(6) "Retirement allowance" means the annual amount, payable monthly, to which a retirant, retirement allowance beneficiary, or refund beneficiary is entitled under this act.
(7) "Retirement allowance beneficiary" means a person who is being paid or has entitlement to the payment of a retirement allowance in the event of the death of a member, deferred member, or retirant.
(8) "Retirement board" means the retirement board created in section 6.
(9) "Retirement system" means the system of benefits for members and qualified participants of the department of state police and their survivors and beneficiaries provided by this act.
(10) "Surviving spouse" means the spouse at the time of death of the member or retirant.
(11) "Tier 1" means the retirement plan available to a member under this act.
(12) "Tier 2" means the retirement plan established pursuant to section 401(k) of the internal revenue code, 26 USC 401, that is available to qualified participants under sections 62 to 74.
Sec. 24c. (1) Subject to subsection (5), the retirement system shall grant service under this act for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, to a member who is an individual described in section 55(2)(a) of the state employees' retirement act, 1943 PA 240, MCL 38.55, if the member pays to the retirement system an amount equal to the actuarial value of the service as determined by the retirement system's actuary.
(2) Service under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, is not creditable toward retirement under this act if the member is or will be receiving a retirement allowance for the same service from another retirement system.
(3) A member described in subsection (1) is not required to do either of the following:
(a) Purchase any service credit under this section for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69.
(b) If the member does purchase service credit under this section for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, purchase all of the service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69.
(4) After May 28, 2024 at 5 p.m. Eastern Daylight Saving Time, a member is not eligible to initiate service credit purchase under this section. A member has 5 years after the date of initiating service credit purchase under this section to complete payment. If a member does not complete purchasing service credit within 5 years after the date of initiating the purchase, the member will not be granted service credit under this section. A member may purchase service under this section in 1 or more of the following manners:
(a) Tax deferred payments, in a form and manner as determined by the retirement system.
(b) Additional payments, in a form and manner as determined by the retirement system.
(5) The retirement system shall establish a method to implement the payments under subsection (4).
(6) For purposes of vesting under section 42b, a member is granted service under this act for service rendered under the state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69, even if the member did not purchase service under this section.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 5833 (request no. 02241'21) of the 101st Legislature is enacted into law.
