MCL - Act 261 of 1957


Act 261 of 1957

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

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

The People of the State of Michigan enact:
Document Type Description
Section 38.1001 Section Retirement system; creation.
Section 38.1002 Section Michigan legislative retirement system; name.
Section 38.1003 Section Construction of terms.
Section 38.1004 Section “Retirement system” defined.
Section 38.1005 Section Board; definition.
Section 38.1006 Section “Member” defined.
Section 38.1007 Section Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1007a Section “Direct rollover” and “distributee” defined.
Section 38.1008 Section Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1008a Section Definitions.
Section 38.1009 Section “Salary” defined.
Section 38.1010 Section Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1011 Section “Service” defined; election to receive military service credit; effect of membership in retirement system.
Section 38.1012 Section “Retirement allowance” defined.
Section 38.1013 Section “Retirant” defined.
Section 38.1013a Section “Survivor,”“eligible child,” and “surviving spouse” defined.
Section 38.1014 Section “Refund beneficiary” defined.
Section 38.1015 Section Actuarial tables; definition.
Section 38.1016 Section Prescribed rate of interest; definition.
Section 38.1017 Section “Fiscal year” defined.
Section 38.1017a Section “Deferred vested member” defined.
Section 38.1017b Section “Leadership position” defined.
Section 38.1017c Section “Legislator” defined.
Section 38.1017d Section “Tier 1” and “Tier 2” defined.
Section 38.1018 Section Legislator or lieutenant governor; membership in retirement system; notice of election not to participate; refund of contributions; effect of notice; rescission of notice; contributions and interest; eligibility on or after March 31, 1997.
Section 38.1019 Section Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1020 Section Members' retirement fund; creation; purpose; computing retirement reserves for retirement allowances; financing; state's appropriations for current service, accrued service, and retirement allowances; allocation of employer contributions.
Section 38.1021 Section Members' savings fund; creation; purpose; contributions; rate; additional contributions; payroll deductions; transfer of contributions upon retirement or death.
Section 38.1021a Section Member contributions picked up by state.
Section 38.1022 Section Survivors' retirement fund; creation; purpose; contributions; rate; payroll deductions; computing retirement reserves for retirement allowances; financing; state's appropriations for survivors' retirement allowances.
Section 38.1022a Section Income fund; creation; purpose; interest, dividends, and other income; expenses.
Section 38.1022b Section Prorating and allocating annual appropriations to retirement system.
Section 38.1022c Section Health insurance fund; creation; disposition; disbursement; contributions; payroll deductions; nonrefundable.
Section 38.1023 Section Requirements for entitlement to retirement allowance; right to allowance; amount; recalculation of retirement allowance; election to defer receipt of retirement allowance; computation of retirement allowance; longevity allowance.
Section 38.1023a Section Repealed. 1974, Act 215, Eff. Dec. 31, 1974.
Section 38.1023b Section Retirant or deferred vested member again becoming legislator or lieutenant governor; election to again become member; notice; conditions; nonpayment of retirement allowance; declining to again become member; exception.
Section 38.1023c Section Increase of retirement allowance.
Section 38.1023d Section Disabled member; retirement allowance; annual examination.
Section 38.1023e Section Supplemental payments for retirants or retirement allowance beneficiaries with retirement allowance effective date before January 1, 1979; future adjustments.
Section 38.1024 Section Survivor's retirement allowance; eligibility; duration, commencement, and rate; status of adopted child; payments to eligible child; effect of marriage or attainment of ineligible age; payment of survivor's retirement allowance as provided in written designation; division of survivor's retirement allowance among eligible survivors; receipt of entire survivor's retirement allowance by surviving spouse when eligible children become ineligible.
Section 38.1024a Section Remarriage of surviving spouse.
Section 38.1025 Section Retirement system as trust; board as fiduciary; nonapplicability to Tier 2 retirement plan.
Section 38.1026 Section Retirement system; board of trustees; membership; eligibility and terms; oath of office.
Section 38.1027 Section First board of trustees; organizational meeting, election of officers.
Section 38.1028 Section Vacancy in trusteeship.
Section 38.1029 Section Trustees; compensation and expenses.
Section 38.1030 Section Board of trustees; quorum, proxy.
Section 38.1031 Section Board of trustees; powers and duties.
Section 38.1032 Section Board of trustees; regular and special meetings; conducting business at public meeting; notice of meeting.
Section 38.1033 Section Board of trustees; authority as to retirement allowances, suspensions and refunds.
Section 38.1034 Section Board of trustees; certification of prescribed interest rate; adoption of actuarial tables.
Section 38.1035 Section Board of trustees; estimate of appropriation.
Section 38.1036 Section Repealed. 1987, Act 58, Imd. Eff. June 23, 1987.
Section 38.1036a Section Reinstatement of suspended contributions.
Section 38.1037 Section Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1038 Section Board of trustees; offices; books and records; availability of certain writings to public.
Section 38.1039 Section Board of trustees; appointment of secretary and administrative personnel.
Section 38.1040 Section Board of trustees; record of proceedings; individual accounts; actuarial data.
Section 38.1041 Section Board of trustees; audit of accounts; annual statement.
Section 38.1042 Section Acceptance of gift, grant, or bequest by board.
Section 38.1043 Section Individual statement.
Section 38.1044 Section Rules and bylaws.
Section 38.1045 Section Secretary of board; powers and duties.
Section 38.1046 Section Actuary; technical advisor of board, powers and duties.
Section 38.1047 Section State treasurer as ex officio treasurer of retirement system; duties.
Section 38.1048 Section Warrants.
Section 38.1049 Section Payroll voucher.
Section 38.1050 Section Investment and reinvestment of cash assets; nonapplicability to Tier 2.
Section 38.1050a Section Grants and insurance revolving fund; creation; purpose; expenditures; payments to fund by payroll deductions; purchase and payment of premiums on life insurance policies.
Section 38.1050b Section Hospitalization, medical, dental, and vision coverage; purchase; payment of premiums; manner.
Section 38.1051 Section Investment of retirement system funds; ownership by system; registration; recording; nonapplicability to Tier 2.
Section 38.1052 Section Board of trustees and employees; interest in investments prohibited; violation of section, penalty.
Section 38.1053 Section Vested interest in refunds; payment of member contributions; discharge of claims.
Section 38.1054 Section Payments as obligations of state; disposition of revenues.
Section 38.1055 Section Refund of contributions with interest; request; forfeiture; service credit upon resumption of membership; designation of beneficiary; payment of contributions with interest.
Section 38.1056 Section Undivided interest in assets of system.
Section 38.1057 Section Retirement allowances, benefits, and credits not subject to taxation; subject to taxation beginning January 1, 2012; subject to public employee retirement benefit protection act.
Section 38.1058 Section Retirement system records; falsification, penalty.
Section 38.1058a Section Correction of error; adjustment of payment.
Section 38.1059 Section Payment of benefits; commencement.
Section 38.1059a Section Retirement system as qualified pension plan; administrative requirements and benefit limitations; qualified military service.
Section 38.1060 Section Short title.
Section 38.1061 Section Election to terminate membership in Tier 1 and become qualified participant in Tier 2; election by deferred vested member or former nonvested member; election as irrevocable; rights and duties; method of election; signature of spouse; waiver; election subject to eligible domestic relations order; notice of disqualification for tax purposes.
Section 38.1062 Section Election to terminate membership in retirement system under MCL 38.1061(1) and (2); transfer of lump sum amount; recomputation; calculation; basis; utilization of actuarial valuation report; notification of disqualification for tax purposes.
Section 38.1063 Section Calculation of accrued cost savings; submission of total amount in executive budget to legislature; appropriation.
Section 38.1064 Section Meanings of words and phrases; “accumulated balance” defined.
Section 38.1065 Section “Employer,”“former qualified participant,” and “health benefit dependent” defined.
Section 38.1066 Section “Qualified participant,”“refund beneficiary,” and “state treasurer” defined.
Section 38.1067 Section Administration and investment of Tier 2 by state treasurer; state treasurer as fiduciary and trustee; appointment of advisory board; determination of provisions and procedures; authority and responsibility of state treasurer to employ or contract with employees or for services.
Section 38.1068 Section Hearing.
Section 38.1069 Section Accumulated employer and employee contributions and earnings; direction of investment; limitations inapplicable to Tier 2.
Section 38.1070 Section Tier 2; payment of administrative expenses.
Section 38.1071 Section Participation in other public sector retirement benefits plan.
Section 38.1072 Section Individual becoming legislator or lieutenant governor on or after March 31, 1997; notice of election.
Section 38.1073 Section Election to terminate membership in Tier 1; crediting Tier 2 account; charging Tier 2 account for excess transfers.
Section 38.1074 Section Section subject to vesting requirements; Tier 2 contributions by employer and qualified participant; limitations.
Section 38.1075 Section Tier 2; vesting requirements and schedule; health care coverage; vesting requirements.
Section 38.1076 Section Crediting years of accrued service.
Section 38.1077 Section Refund beneficiary; nomination.
Section 38.1078 Section Distribution of accumulated balance.
Section 38.1079 Section Health insurance coverage; election; eligibility.
Section 38.1080 Section Distributions; exemption from tax; subject to public employee retirement benefit protection act; right of setoff to recover overpayment and satisfy claims; correction of errors in records and actions.