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Act 261 of 1957
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Act 261 of 1957

AN ACT for the creation, maintenance, and administration of a legislative members' and presiding officers' retirement system within the legislature; to provide retirement allowances to the participants of the retirement system, and survivors' allowances and other benefits to their beneficiaries upon death; to exempt those allowances and benefits from certain taxes and legal processes; to establish certain funds in connection with the retirement system; to authorize and make appropriations for the retirement system; to prescribe the powers and duties of certain state departments, agencies, officials, and employees; and to prescribe penalties and provide remedies.

History: 1957, Act 261, Eff. Sept. 27, 1957 ;-- Am. 1960, Act 113, Eff. Aug. 17, 1960 ;-- Am. 1974, Act 215, Eff. Dec. 31, 1974 ;-- Am. 1996, Act 486, Eff. Mar. 31, 1997 ;-- Am. 2002, Act 97, Imd. Eff. Mar. 27, 2002

© 2017 Legislative Council, State of Michigan

The People of the State of Michigan enact:

Section 38.1001SectionRetirement system; creation.
Section 38.1002SectionMichigan legislative retirement system; name.
Section 38.1003SectionConstruction of terms.
Section 38.1004Section“Retirement system” defined.
Section 38.1005SectionBoard; definition.
Section 38.1006Section“Member” defined.
Section 38.1007SectionRepealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1007aSection“Direct rollover” and “distributee” defined.
Section 38.1008SectionRepealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1008aSectionDefinitions.
Section 38.1009Section“Salary” defined.
Section 38.1010SectionRepealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1011Section“Service” defined; election to receive military service credit; effect of membership in retirement system.
Section 38.1012Section“Retirement allowance” defined.
Section 38.1013Section“Retirant” defined.
Section 38.1013aSection“Survivor,”“eligible child,” and “surviving spouse” defined.
Section 38.1014Section“Refund beneficiary” defined.
Section 38.1015SectionActuarial tables; definition.
Section 38.1016SectionPrescribed rate of interest; definition.
Section 38.1017Section“Fiscal year” defined.
Section 38.1017aSection“Deferred vested member” defined.
Section 38.1017bSection“Leadership position” defined.
Section 38.1017cSection“Legislator” defined.
Section 38.1017dSection“Tier 1” and “Tier 2” defined.
Section 38.1018SectionLegislator or lieutenant governor; membership in retirement system; notice of election not to participate; refund of contributions; effect of notice; rescission of notice; contributions and interest; eligibility on or after March 31, 1997.
Section 38.1019SectionRepealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1020SectionMembers' retirement fund; creation; purpose; computing retirement reserves for retirement allowances; financing; state's appropriations for current service, accrued service, and retirement allowances; allocation of employer contributions.
Section 38.1021SectionMembers' savings fund; creation; purpose; contributions; rate; additional contributions; payroll deductions; transfer of contributions upon retirement or death.
Section 38.1021aSectionMember contributions picked up by state.
Section 38.1022SectionSurvivors' retirement fund; creation; purpose; contributions; rate; payroll deductions; computing retirement reserves for retirement allowances; financing; state's appropriations for survivors' retirement allowances.
Section 38.1022aSectionIncome fund; creation; purpose; interest, dividends, and other income; expenses.
Section 38.1022bSectionProrating and allocating annual appropriations to retirement system.
Section 38.1022cSectionHealth insurance fund; creation; disposition; disbursement; contributions; payroll deductions; nonrefundable.
Section 38.1023SectionRequirements for entitlement to retirement allowance; right to allowance; amount; recalculation of retirement allowance; election to defer receipt of retirement allowance; computation of retirement allowance; longevity allowance.
Section 38.1023aSectionRepealed. 1974, Act 215, Eff. Dec. 31, 1974.
Section 38.1023bSectionRetirant or deferred vested member again becoming legislator or lieutenant governor; election to again become member; notice; conditions; nonpayment of retirement allowance; declining to again become member; exception.
Section 38.1023cSectionIncrease of retirement allowance.
Section 38.1023dSectionDisabled member; retirement allowance; annual examination.
Section 38.1023eSectionSupplemental payments for retirants or retirement allowance beneficiaries with retirement allowance effective date before January 1, 1979; future adjustments.
Section 38.1024SectionSurvivor's retirement allowance; eligibility; duration, commencement, and rate; status of adopted child; payments to eligible child; effect of marriage or attainment of ineligible age; payment of survivor's retirement allowance as provided in written designation; division of survivor's retirement allowance among eligible survivors; receipt of entire survivor's retirement allowance by surviving spouse when eligible children become ineligible.
Section 38.1024aSectionRemarriage of surviving spouse.
Section 38.1025SectionRetirement system as trust; board as fiduciary; nonapplicability to Tier 2 retirement plan.
Section 38.1026SectionRetirement system; board of trustees; membership; eligibility and terms; oath of office.
Section 38.1027SectionFirst board of trustees; organizational meeting, election of officers.
Section 38.1028SectionVacancy in trusteeship.
Section 38.1029SectionTrustees; compensation and expenses.
Section 38.1030SectionBoard of trustees; quorum, proxy.
Section 38.1031SectionBoard of trustees; powers and duties.
Section 38.1032SectionBoard of trustees; regular and special meetings; conducting business at public meeting; notice of meeting.
Section 38.1033SectionBoard of trustees; authority as to retirement allowances, suspensions and refunds.
Section 38.1034SectionBoard of trustees; certification of prescribed interest rate; adoption of actuarial tables.
Section 38.1035SectionBoard of trustees; estimate of appropriation.
Section 38.1036SectionRepealed. 1987, Act 58, Imd. Eff. June 23, 1987.
Section 38.1036aSectionReinstatement of suspended contributions.
Section 38.1037SectionRepealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1038SectionBoard of trustees; offices; books and records; availability of certain writings to public.
Section 38.1039SectionBoard of trustees; appointment of secretary and administrative personnel.
Section 38.1040SectionBoard of trustees; record of proceedings; individual accounts; actuarial data.
Section 38.1041SectionBoard of trustees; audit of accounts; annual statement.
Section 38.1042SectionAcceptance of gift, grant, or bequest by board.
Section 38.1043SectionIndividual statement.
Section 38.1044SectionRules and bylaws.
Section 38.1045SectionSecretary of board; powers and duties.
Section 38.1046SectionActuary; technical advisor of board, powers and duties.
Section 38.1047SectionState treasurer as ex officio treasurer of retirement system; duties.
Section 38.1048SectionWarrants.
Section 38.1049SectionPayroll voucher.
Section 38.1050SectionInvestment and reinvestment of cash assets; nonapplicability to Tier 2.
Section 38.1050aSectionGrants and insurance revolving fund; creation; purpose; expenditures; payments to fund by payroll deductions; purchase and payment of premiums on life insurance policies.
Section 38.1050bSectionHospitalization, medical, dental, and vision coverage; purchase; payment of premiums; manner.
Section 38.1051SectionInvestment of retirement system funds; ownership by system; registration; recording; nonapplicability to Tier 2.
Section 38.1052SectionBoard of trustees and employees; interest in investments prohibited; violation of section, penalty.
Section 38.1053SectionVested interest in refunds; payment of member contributions; discharge of claims.
Section 38.1054SectionPayments as obligations of state; disposition of revenues.
Section 38.1055SectionRefund of contributions with interest; request; forfeiture; service credit upon resumption of membership; designation of beneficiary; payment of contributions with interest.
Section 38.1056SectionUndivided interest in assets of system.
Section 38.1057SectionRetirement allowances, benefits, and credits not subject to taxation; subject to taxation beginning January 1, 2012; subject to public employee retirement benefit protection act.
Section 38.1058SectionRetirement system records; falsification, penalty.
Section 38.1058aSectionCorrection of error; adjustment of payment.
Section 38.1059SectionPayment of benefits; commencement.
Section 38.1059aSectionRetirement system as qualified pension plan; administrative requirements and benefit limitations; qualified military service.
Section 38.1060SectionShort title.
Section 38.1061SectionElection to terminate membership in Tier 1 and become qualified participant in Tier 2; election by deferred vested member or former nonvested member; election as irrevocable; rights and duties; method of election; signature of spouse; waiver; election subject to eligible domestic relations order; notice of disqualification for tax purposes.
Section 38.1062SectionElection to terminate membership in retirement system under MCL 38.1061(1) and (2); transfer of lump sum amount; recomputation; calculation; basis; utilization of actuarial valuation report; notification of disqualification for tax purposes.
Section 38.1063SectionCalculation of accrued cost savings; submission of total amount in executive budget to legislature; appropriation.
Section 38.1064SectionMeanings of words and phrases; “accumulated balance” defined.
Section 38.1065Section“Employer,”“former qualified participant,” and “health benefit dependent” defined.
Section 38.1066Section“Qualified participant,”“refund beneficiary,” and “state treasurer” defined.
Section 38.1067SectionAdministration and investment of Tier 2 by state treasurer; state treasurer as fiduciary and trustee; appointment of advisory board; determination of provisions and procedures; authority and responsibility of state treasurer to employ or contract with employees or for services.
Section 38.1068SectionHearing.
Section 38.1069SectionAccumulated employer and employee contributions and earnings; direction of investment; limitations inapplicable to Tier 2.
Section 38.1070SectionTier 2; payment of administrative expenses.
Section 38.1071SectionParticipation in other public sector retirement benefits plan.
Section 38.1072SectionIndividual becoming legislator or lieutenant governor on or after March 31, 1997; notice of election.
Section 38.1073SectionElection to terminate membership in Tier 1; crediting Tier 2 account; charging Tier 2 account for excess transfers.
Section 38.1074SectionSection subject to vesting requirements; Tier 2 contributions by employer and qualified participant; limitations.
Section 38.1075SectionTier 2; vesting requirements and schedule; health care coverage; vesting requirements.
Section 38.1076SectionCrediting years of accrued service.
Section 38.1077SectionRefund beneficiary; nomination.
Section 38.1078SectionDistribution of accumulated balance.
Section 38.1079SectionHealth insurance coverage; election; eligibility.
Section 38.1080SectionDistributions; exemption from tax; subject to public employee retirement benefit protection act; right of setoff to recover overpayment and satisfy claims; correction of errors in records and actions.
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