HOUSE BILL No. 5737 May 4, 2000, Introduced by Rep. Jamnick and referred to the Committee on Senior Health, Security and Retirement. A bill to amend 1943 PA 240, entitled "State employees' retirement act," by amending sections 45, 46, and 47 (MCL 38.45, 38.46, and 38.47), section 45 as amended by 1988 PA 351. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 45. As used in sections 45 to 47: 2 (a)Except as provided in subparagraph (v), on and after3January 1, 1989, "covered"COVERED position" means any of the 4 following: 5 (i)AON OR AFTER JANUARY 1, 1989, A position in the clas- 6 sified civil service with a classification of corrections offi- 7 cer; resident unit officer; corrections medical aide; corrections 8 shift supervisor; corrections security specialist; deputy prison 9 warden; or departmental administrator-prison warden. 04552'99 CAS 2 1 (ii)AON OR AFTER JANUARY 1, 1989, A position that is 2 assigned to a work station inside the security perimeter of a 3 state correctional facility designated as "medium", "close", or 4 "maximum". 5 (iii)AON OR AFTER JANUARY 1, 1989, A position within a 6 state correctional facility that requires the employee to be in 7 direct contact with prisoners for more than 50% of the employee's 8 work time performing supervisory or disciplinary duties including 9 1 or more of the following: 10 (A) Supervising prisoners in the performance of tasks. 11 (B) Supervising prisoners for the purpose of enforcing the 12 facility's rules. 13 (C) Direct participation in the disciplinary process. 14 (iv)AON OR AFTER JANUARY 1, 1989, A position with the 15 center for forensic psychiatry that is classified by civil serv- 16 ice as forensics security aide IIB, forensics security aide IIIB, 17 forensics security supervisor IVB, forensics security supervisor 18 VB, forensics security supervisor VIB, or forensics supervisor 19 VII. 20 (v) A position that was a covered position under this sec- 21 tion before January 1, 1989, that is excluded by subparagraphs 22 (i), (ii), (iii), and (iv), if and only as long as the person in 23 the position on January 1, 1989, continues in the position after 24 January 1, 1989. 25 (vi) A POSITION THAT WAS A COVERED POSITION UNDER THIS SEC- 26 TION WITH A CORRECTIONS CENTER BEFORE THE POSITION WAS TERMINATED 27 DUE TO THE CLOSING OF THE CORRECTIONS CENTER BETWEEN AUGUST 1, 04552'99 3 1 1999 AND AUGUST 1, 2000, IF THE PERSON WHO WAS IN THE POSITION 2 BEFORE THE CORRECTIONS CENTER CLOSING IS TRANSFERRED TO A NONCOV- 3 ERED POSITION AND WHO EITHER CONTINUES IN A NONCOVERED POSITION 4 UNTIL RETIRING AS A SUPPLEMENTAL MEMBER UNDER SECTIONS 46 AND 47 5 OF THIS ACT OR WHO TRANSFERS TO A COVERED POSITION BUT WHOSE LAST 6 3 YEARS OF CREDITED SERVICE ARE A COMBINATION OF COVERED AND 7 UNCOVERED SERVICE DUE TO THE TERMINATION OF THE COVERED POSITION 8 BY THE CLOSING OF A CORRECTION CENTER. 9 (b) "Supplemental member" means a member who is employed in 10 a covered position. 11 (c) "Covered service" means credited service acquired in a 12 covered position. 13 (d) "Supplemental final average compensation" means 1/3 of 14 the compensation paid a supplemental member during the period of 15 3 consecutive years of the member's covered service producing the 16 highest average and contained within the member's last 10 years 17 of credited service immediately preceding the date the member's 18 employment in a covered position last terminates. 19 (e) "State correctional facility" means a facility under the 20 jurisdiction of the department of corrections that has a designa- 21 tion of "maximum", "close", "medium", "minimum", "prison camp", 22 or "correction center". 23 Sec. 46. (1) A supplemental member may retire with a sup- 24 plemental early retirement allowance AS provided FOR in section 25 47upon satisfaction of eachIF THE SUPPLEMENTAL MEMBER MEETS 26 ALL of the following conditions: 04552'99 4 1 (a) He OR SHE is age 51 years or older but less than age 62 2 years. 3 (b) He OR SHE has 25 or more years of covered service. 4 (c) His OR HER last 3 years of credited service are covered 5 service OR HE OR SHE WAS EMPLOYED IN A COVERED POSITION IN A COR- 6 RECTIONS CENTER AND HIS OR HER COVERED POSITION WAS TERMINATED 7 DUE TO THE CLOSING OF THE CORRECTIONS CENTER BETWEEN AUGUST 1, 8 1999 AND AUGUST 1, 2000, RESULTING IN THE EMPLOYEE'S TRANSFER TO 9 A NONCOVERED POSITION. 10 (d) He OR SHE files a written request for retirement with 11 the retirement board stating the date that he OR SHE wishes to be 12 retired, which shall not be less than 30 days or more than 90 13 days after the datehis applicationTHE WRITTEN REQUEST is 14 filed. 15 (2) A supplemental member may be separated from employment 16 in a covered position the first day of the calendar month follow- 17 ing the month in which he OR SHE attains age 56 years. A supple- 18 mental member so separated may retire with a supplemental early 19 retirement allowance AS provided FOR in section 47 ifhe satis-20fies eachTHE SUPPLEMENTAL MEMBER MEETS ALL of the following 21 conditions: 22 (a) He OR SHE has not attained age 62 years. 23 (b) He OR SHE has 10 or more years of covered service. 24 (c) His OR HER last 3 years of credited service are covered 25 service OR HE OR SHE WAS EMPLOYED IN A COVERED POSITION IN A COR- 26 RECTIONS CENTER AND HIS OR HER COVERED POSITION WAS TERMINATED 27 DUE TO THE CLOSING OF THE CORRECTIONS CENTER BETWEEN AUGUST 1, 04552'99 5 1 1999 AND AUGUST 1, 2000, RESULTING IN THE EMPLOYEE'S TRANSFER TO 2 A NONCOVERED POSITION. 3 (d) He OR SHE files a written request for retirement with 4 the retirement board stating the date that he OR SHE wishes to be 5 retired, which shall not be less than 30 days or more than 90 6 days after the datehis applicationTHE WRITTEN REQUEST is 7 filed. 8 (3) The state personnel director shall determine all ques- 9 tions on eligibility for supplemental early retirement benefits 10within the meaning ofUNDER sections 45 to 47. 11 Sec. 47. (1) Upon retirement as provided in section 46, a 12 supplemental member shall be paid a temporary straight life sup- 13 plemental early retirement allowance terminating uponhis14attainment ofTHE SUPPLEMENTAL MEMBER REACHING age 62 years or 15 his OR HER death, whichever occurs first. Prior to the effective 16 date ofhisretirement,heTHE SUPPLEMENTAL MEMBER may 17electCHOOSE to be paid his OR HER retirement allowance under 18 an optional form of payment provided in section31 (a)19 31(1)(A). For the purposes of this election, the provisions of 20 section31 (a)31(1)(A) are modified to reflect the temporary 21 nature of a supplemental early retirement allowance. 22 (2) The amount ofhisTHE SUPPLEMENTAL MEMBER'S temporary 23 straight life supplemental early retirement allowanceshall be24 IS equal to the difference between (i) 2.0% of his OR HER supple- 25 mental final average compensation multiplied by his OR HER cov- 26 ered service plus 1.5% ofhisTHE SUPPLEMENTAL MEMBER'S final 27 average compensation multiplied by the excess, if any, of his OR 04552'99 6 1 HER credited service over his OR HER covered service; and (ii) 2 the amount of retirement allowance paidpursuant toUNDER sec- 3 tion 20. 04552'99 Final page. CAS