November 30, 2017, Introduced by Senators HILDENBRAND, STAMAS and MARLEAU 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. 686
of the 99th Legislature is enacted into law.