HB-5305, As Passed House, December 7, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5305

 

 

November 30, 2017, Introduced by Reps. Crawford, Albert and Lower and referred to the Committee on Michigan Competitiveness.

 

     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 sections 12a, 12d, and 12e (MCL 46.12a, 46.12d, and

 

46.12e), section 12a as amended by 2003 PA 219.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 12a. (1) A Subject to subsection (34), 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, a 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 money for the

 

insurance. For a county with 100 employees or more, the county may

 

under this subsection self-insure for health, accident and

 

hospitalization, and group disability coverage for a county

 

employee, a 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.

 

amount. 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 provided 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 must 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 on the employee's termination, together with plus

 

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

 

must 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 must

 

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 must 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 must 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 must 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 on retirement.

 

     (b) "Longevity pay" means increments of compensation payable

 

at annual or semiannual intervals and based upon on 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 must 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 on the termination of employment. The payment of pension or

 

retirement benefits shall must 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 must 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, amount, 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 is 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 on 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 is 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 must provide

 

that 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 must provide that health, accident, and hospitalization

 

insurance premiums may be paid out of the earnings of this fund.

 

These payments shall must 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 must 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 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.

 

     (9) The county board of commissioners, upon on the request of

 

a county employee, by not less than a 3/5 vote may credit that the

 

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 is 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 is 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 while employed by 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 is vested 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 while employed by

 

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 must 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 that the redetermination is being made. The

 

redetermined amount shall must not be less than the amount of

 

pension otherwise payable. A provision of this section that limits

 

the amount of a pension shall does 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

 

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 must be determined by an actuarial


valuation and established and maintained by yearly appropriations

 

by the county and contributions by employees. The reserves shall

 

must 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 must

 

not be used for any other purpose than the payment of pension,

 

retirement, and other benefits and refunds of employee

 

contributions pursuant to the plan established in a county. An

 

employee's contributions shall must 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 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 On the approval of the county board of

 

commissioners, a member who entered the armed service Armed Service

 

of the United States before June 1, 1980 or who entered the armed

 

service Armed Service of the United States on or after June 1, May

 

31, 1980 during a time of war or emergency condition as described

 

in section 1 of 1965 PA 190, MCL 35.61, as that section read on

 

September 19, 2016, may elect to receive credited service for not

 

more than 5 years of active military service. Credit for military

 

service shall must be given upon on 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 must 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 must 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 may be credited under this subsection.

 

     (14) A member who enters or entered any armed service 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 is not be


recognized for the purposes of this subsection.

 

     (e) Armed service credited a member under subsection (13)

 

shall is not be the basis of credited service under this section.

 

     (f) Armed service credited a member under this subsection

 

shall does 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 is 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 is 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 must

 

be given for employment in the transitional public employment

 

program for purposes of determining a retirement allowance upon on

 

the payment by the person and the person's employer under the

 

transitional public employment program from funds money provided

 

under the former comprehensive employment and training act of 1973,

 

Public Law 93-203, as funds permit, money permits, 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 the number of

 

employees that the employer determined would transfer from the

 

transitional public employment program into positions covered by

 

this section. If the funds money provided under the former

 

comprehensive employment and training act of 1973, Public Law 93-

 

203, are is insufficient, the person's current employer shall pay


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 a

 

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 continues 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 continues 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 former 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 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 under section 13(2) of former 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 must 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 must not exceed the

 

employee's total annual judicial salary payable from all sources at

 

the time of his or her retirement. This subsection shall must not

 

be construed to diminish or impair an accrued financial benefit.

 

     (22) Beginning September 1, 1981, for each a county employee

 

who is a judge of the probate court, the sum of the average final

 

compensation calculated for that the employee pursuant to under

 

this section and the final salary calculated for that the 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 must not exceed

 

the employee's total annual judicial salary payable from all

 

sources at the time of his or her retirement. This subsection shall

 

must 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 must 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 a 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 must not exceed the

 

judge's total annual salary payable from all sources at the time of

 

his or her retirement. This subsection shall must not be construed

 

to diminish or impair an accrued financial benefit.

 

     (25) The county board of commissioners, upon on the request of

 

a county employee, by not less than a 3/5 vote may credit that the

 

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 is 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 the

 

person shall must 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 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

 

former 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 former 1983

 

PA 259 and sections 148 to 160 of former 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 must 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 is

 

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 must 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 must resume without change in amount or conditions by

 

reason of the employment. The retirant shall must 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 continues 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 because 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

 

an 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 continues 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 is 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 continues 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 an individual 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 on 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 must 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 must 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 must 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, 2003 PA

 

215, MCL 490.101 to 490.601, 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 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.

 

     (34) Notwithstanding anything in this act to the contrary, a

 

pension or retirement benefit under this section is subject to the

 

protecting local government retirement and benefits act.

 

     Sec. 12d. If Subject to the protecting local government

 

retirement and benefits act, if the functions of a department,

 

board or commission of the state or of any political subdivision of

 

the state, herein called a governmental unit , is are transferred

 

to the county, and if all or part of the employees of the functions


are transferred from the employ of a governmental unit to the

 

employ of the county, the board of supervisors may regard for the

 

purposes of retirement benefits as set forth in section 12a the

 

service rendered to the governmental unit by the employees

 

transferred as county service to the extent and under such

 

reasonable terms and conditions as are mutually agreeable between

 

the board of supervisors and the governing body of the governmental

 

unit. As used in this section, "governmental unit" means a

 

department, board, or commission of this state, or any political

 

subdivision of this state.

 

     Sec. 12e. Whenever the employees Subject to the protecting

 

local government retirement and benefits act, if an employee of a

 

county department of a county which that has adopted a retirement

 

system providing for the payment of benefits in the event of a

 

nonduty disability or nonduty death are is transferred to the

 

employ of the this state by reason because of the function or

 

functions a function of the department being is transferred to the

 

this state, the employees so transferred transferred employee who

 

(1) do does not withdraw their his or her accumulated contributions

 

from the county's retirement system, and (2) who while in the

 

employ of the employed by this state sustain sustains nonduty total

 

disability or nonduty death, shall must have the credited period of

 

service in the employ of the while employed by this state added to

 

the credited period of service with the county prior to such before

 

the transfer for the purpose of determining eligibility for nonduty

 

disability retirement pension or benefits or, for nonduty death

 

benefits payable to the dependents of deceased employees under the


plan adopted by the county. All Subject to the protecting local

 

government retirement and benefits act, all pension or retirement

 

benefits of such a transferred employees employee described in this

 

section or their dependents shall his or her dependents must be

 

based upon on the service credit and compensation earned while in

 

the employ of employed by the county. The Subject to the protecting

 

local government and retirement benefits act, the board of

 

commissioners by ordinance may provide that all pension or

 

retirement benefits of transferred employees or their dependents

 

shall must be based on the highest 5 years of service credit and

 

compensation earned while in the employ of employed by either the

 

county or the this state.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. ____ or House Bill No. 5298 (request no.

 

00251'17 *) of the 99th Legislature is enacted into law.