May 31, 2006, Introduced by Rep. Jones and referred to the Committee on Senior Health, Security, and Retirement.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
(MCL 38.1 to 38.69) by adding section 19k.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 19k. (1) Notwithstanding section 19, a member may retire
and receive a retirement allowance computed under this section if
the member meets all of the following requirements:
(a) On or before September 1, 2007, or on the effective date
of his or her retirement, whichever is earlier, the member's
combined age and length of credited service is equal to or greater
than 80 years.
(b) The member is within the classified state civil service,
is an employee of the judicial branch, or is an individual not
described in subsection (2)(b).
(c) Except as provided in section 13(8), the member was
employed by this state for the 6-month period ending on the
effective date of his or her retirement or was an employee of the
state judicial council on September 30, 1996 as described in
section 44a. A member who is on layoff status from state employment
is considered to have met the employment requirement of this
subdivision.
(d) Except as may be provided otherwise in subsection (5), the
member executes and files a written application with the retirement
board, on or after January 1, 2007, but not later than September 1,
2007, stating a date on or after January 1, 2007, but not later
than September 1, 2007, on which he or she desires to retire. A
member may withdraw a written application on or before August 15,
2007 or 7 days after the rejection of an extension requested under
subsection (4), whichever is later. A written application submitted
by a member and not withdrawn on or before August 15, 2007 or 7
days after the rejection of an extension requested under subsection
(4), whichever is later, is irrevocable.
(e) The member is not a conservation officer as described in
section 48.
(2) Notwithstanding section 19, a member may retire and
receive a retirement allowance computed under this section if the
member meets all of the following requirements:
(a) On or before September 1, 2007, or on the effective date
of his or her retirement, whichever is earlier, the member's
combined age and length of credited service is equal to or greater
than 80 years.
(b) The member is an employee of the legislature, is an
employee of the office of governor, or is an unclassified employee
within the executive branch.
(c) Except as provided in section 13(8), the member was
employed by this state or the legislature for the 6-month period
ending on the effective date of his or her retirement. A member who
is on layoff status from state employment is considered to have met
the employment requirement of this subdivision.
(d) The member executes and files a written application with
the retirement board, on or after January 1, 2007, but not later
than September 1, 2007, stating a date on or after January 1, 2007,
but not later than September 1, 2007, on which he or she desires to
retire. A member may withdraw a written application on or before
August 15, 2007. Except as otherwise provided in subsection (4), a
written application submitted by a member and not withdrawn on or
before August 15, 2007 is irrevocable.
(e) The member is not a conservation officer as described in
section 48.
(3) Any amount that a member retiring under this section would
otherwise be entitled to receive in a lump sum at retirement on
account of accumulated sick leave or accumulated annual leave shall
be paid in 60 consecutive equal monthly installments beginning on
or after August 1, 2007. Payments received under this subsection
shall not be used to purchase service credit under this act. These
payments for accumulated sick leave and accumulated annual leave
are to be paid from funds appropriated to the appointing authority
and not from funds of the retirement system. These payments are not
pensions, annuities, retirement allowances, optional benefits, or
any other rights described in section 40(1), are not exempt from
taxation, are subject to execution, garnishment, attachment, the
operation of bankruptcy or insolvency laws, or other process of
law, and may be assignable as provided in this act.
(4) The director of a principal department may request that
the effective date of retirement under subsection (1) of a member
employed by that department be extended to a date not later than
September 1, 2010. To make a request under this subsection, the
director shall submit a written request and the written concurrence
of the member to the office of the state employer and the state
budget office on or before August 31, 2007. Upon receipt of the
written request and concurrence, the office of the state employer
and the state budget office may extend the effective date of
retirement of a member otherwise eligible to retire under
subsection (1) to a date not later than September 1, 2010. Upon
written approval of the senate majority leader for a member who is
an employee of the senate, the speaker of the house of
representatives for a member who is an employee of the house of
representatives, the senate majority leader and the speaker of the
house of representatives for a member who is an employee of the
office of the auditor general, director or chair of the legislative
retirement system for a member who is an employee of the
legislative retirement system, or the chair and alternate chair of
the legislative council for a member who is an employee of an
agency under the jurisdiction of the legislative council, and upon
written concurrence of the member, the effective date of retirement
for that member under subsection (2) may be extended to a date not
later than September 1, 2010. Upon written approval of the chief
justice for a member who is an employee of the judicial branch,
including, but not limited to, members described in section 44a,
and upon written concurrence of the member, the effective date of
retirement for that member under subsection (1) may be extended to
a date not later than September 1, 2010. The individual or
individuals who approve the extension of an effective date of
retirement for a member who is an employee of the legislature,
supreme court, or court of appeals shall submit written
notification to the office of retirement services of all extensions
approved on or before August 31, 2009.
(5) Except as otherwise provided in subsection (4), upon his
or her retirement as provided in this section, a member who did not
make an election under section 50 to terminate membership in Tier 1
and become a qualified participant in Tier 2 shall receive a
retirement allowance equal to the member's number of years and
fraction of a year of credited service multiplied by 1-3/4% of his
or her final average compensation. Except for the calculation
provided in this subsection, the member's retirement allowance is
subject to section 20. The member's retirement allowance is not
subject to reduction pursuant to section 19(2).
(6) Upon his or her retirement as provided in this section, a
former member who made an election under section 50 to terminate
membership in Tier 1 and become a qualified participant in Tier 2
shall receive a retirement allowance equal to the member's number
of years and fraction of a year of credited service multiplied by
1/4% of his or her final average compensation. Except for the
calculation provided in this subsection, the former member's
retirement allowance is subject to section 20. The former member's
retirement allowance is not subject to reduction pursuant to
section 19(2).
(7) For purposes of this section, an individual who elected to
terminate membership under section 50 and who, but for that
election, would otherwise be eligible for membership in Tier 1
under section 13, shall be considered a member of Tier 1 for the
limited purpose of receiving a retirement allowance calculated
under this section and paid by the retirement system.