February 28, 2006, Introduced by Reps. Palsrok, Vander Veen, Stahl, Taub, Kooiman, Ward, Elsenheimer, Hildenbrand and Walker and referred to the Committee on Education.
A bill to amend 1980 PA 300, entitled
"The public school employees retirement act of 1979,"
by amending section 61 (MCL 38.1361), as amended by 2004 PA 5.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 61. (1) Except as otherwise provided in this section, if
a retirant is receiving a retirement allowance other than a
disability allowance payable under this act or under former 1945 PA
136, on account of either age or years of personal service
performed, or both, and becomes employed by a reporting unit, the
following shall take place:
(a) The retirant shall not be entitled to a new final average
compensation or additional service credit under this retirement
system unless additional service is performed equivalent to 5 or
more years of service credit or, if the retirant has contributed to
the member investment plan, the equivalent of 3 or more years of
service credit. The retirant may elect to have the retirement
allowance recomputed based on the added credit or the final average
compensation resulting from the added service, or both. A
retirement allowance shall not be recomputed until the retirant
pays into the retirement system an amount equal to the retirant's
new final average compensation multiplied by the percentage
determined under section 41(2) for normal cost and unfunded
actuarial accrued liabilities, not including the percentage
required for the funding of health benefits, multiplied by the
total service credit in the period in which the retirant's
additional service was performed.
(b) The retirant's retirement allowance shall be reduced by
the lesser of the amount that the earnings in a calendar year
exceed the amount permitted without a reduction of benefits under
the social security act, chapter 531, 49 Stat. 620, or 1/3 of the
retirant's final average compensation. For purposes of computing
allowable earnings under this subdivision, the final average
compensation shall be increased by 5% for each full year of
retirement.
(2) The retirement system may offset retirement benefits
payable under this act against amounts owed to the retirement
system by a retirant or retirement allowance beneficiary.
(3) Subsection (1) does not apply to a retirant if all of the
following circumstances exist:
(a) The retirant is a former teacher or administrator employed
in a teaching or research capacity by a university that is
considered a reporting unit for the limited purpose described in
section 7(3).
(b) The retirant is not eligible to use any service or
compensation attributable to the employment described in
subdivision (a) for a recomputation of his or her retirement
allowance.
(c) A university that employs a retirant pursuant to this
subsection shall report such employment to the retirement system by
July 1 of each year. The report to be filed shall include the name
of the retirant, the capacity in which the retirant is employed,
and the total annual compensation paid to the retirant.
(4)
Until July 1, 2006 2011, subsection (1) does not apply
to a retirant if all of the following circumstances exist:
(a) The retirant is employed by a reporting unit that has an
approved emergency situation, not including a situation caused by a
labor dispute, that necessitates the hiring of a retirant in the
capacity of a teacher, principal, stationary engineer, or
administrator to prevent depriving students of an education. The
chief executive officer or superintendent of the school district
shall include with the written notification documentation showing
that more than 8% of all classes in the district during the 1998-99
school year are taught by full-time substitute teachers who are not
certificated in the subjects or grade levels which they teach.
Within 30 days after receipt of the notification and documentation
under this subdivision, the department of education shall notify
the chief executive officer or superintendent and the retirement
system of its approval or disapproval of the emergency situation.
If disapproved by the department of education, this subsection does
not apply.
(b) The retirant is employed under an emergency situation
described in subdivision (a) for a period not to exceed 6 years.
(c) The retirant is not eligible to use any service or
compensation attributable to the employment described in
subdivision (a) for a recomputation of his or her retirement
allowance.
(5) On or before July 1, 1999, the state superintendent of
public instruction shall compile a listing of critical shortage
disciplines. This listing shall be updated annually.
(6)
Until July 1, 2006 2011, subsection (1) does not apply
to a retirant if all of the following circumstances exist:
(a) The retirant is employed by a reporting unit that has a
situation, not including a situation caused by a labor dispute,
that necessitates the hiring of a retirant in an area that has been
identified by the state superintendent of public instruction as a
critical shortage discipline pursuant to subsection (5).
(b) The retirant is employed under a situation described in
subdivision (a) for a period not to exceed 6 years.
(c) The retirant is not eligible to use any service or
compensation attributable to the employment described in
subdivision (a) for a recomputation of his or her retirement
allowance.
(7) The provisions of subsections (4) and (6) shall only apply
for
retirants who retired on or before July 1,
2003 2006.