HB-4453,As Passed House,May 14, 2003

SUBSTITUTE FOR

HOUSE BILL NO. 4453

                                                                             A bill to amend 1980 PA 300, entitled                                             

"The public school employees retirement act of 1979,"                       

by amending section 68 (MCL 38.1368).                                       

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 68.  (1) The retirement board shall grant 1 year of                    

2   service credit to a member who has been employed and remunerated            

3   for services performed for not less than  6 hours per day and for           

4   not less than 170 days 1,020 hours in a school fiscal year.  In            

5   determining whether a member is entitled to service credit under            

6   this subsection, the retirement system shall calculate service              

7   credit using the payroll cycle reported to the retirement system            

8   by the employer of the member.  If a biweekly payroll cycle is              

9   reported, the member shall not accrue more than 60 hours in a               

10  payroll cycle.  If a semimonthly payroll cycle is reported, the             

11  member shall not accrue more than 72 hours in a payroll cycle.              

1   If a monthly payroll cycle is reported, the member shall not                

2   accrue more than 138 hours in a payroll cycle.  If a quarterly              

3   payroll cycle is used, the member shall not accrue more than 396            

4   hours in a payroll cycle.

5       (2) A part-time member or a member employed for a fraction                  

6   of the school fiscal year shall receive service credit for                  

7   full-time service on the basis of  30 60 or more hours per                 

8   week biweekly period and proportionate credit for less than               

9   30 60 hours on the basis of  30 60 hours for full-time credit            

10  in the proportion which the hours employed in the school fiscal             

11  year bears to 1,020 hours.                                                  

12      (3) In computing terms of service, a year shall be a legal                  

13  fiscal year at the time and place where the service was                     

14  performed.  Not more than 1 year's service shall be counted for             

15  retirement purposes in any school fiscal year.