September 15, 2009, Introduced by Reps. Lemmons, Durhal, Johnson, Jackson, Leland, Womack, Bledsoe, Young, Bettie Scott, Geiss and Nathan 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 sections 22 and 71 (MCL 38.1322 and 38.1371), section
22 as amended by 1997 PA 143 and section 71 as amended by 1996 PA
268.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 22. (1) The Michigan public school employees' retirement
board is created in the department and shall consist of the
superintendent of public instruction and 11 members appointed by
the governor with the advice and consent of the senate as follows:
(a) Two members who are working as classroom teachers or as
other certified school personnel.
(b) One nonteacher member who is working in a noncertified
educational support position or a retirant who retired from a
noncertified educational support position.
(c) One member who is a school system superintendent.
(d) One member who is working in a school system in a finance
or operations management position, but who is not a school system
superintendent.
(e) One retirant who retired from a classroom teacher
position.
(f) One retirant who retired from a finance or operations
management position.
(g) One administrator or trustee of a community college, which
community college is a reporting unit.
(h) Two from the general public, 1 of which shall have
experience in health insurance or actuarial science and 1 of which
shall have experience in institutional investments. An individual
appointed under this subdivision shall not be a member, deferred
member, retirant, or retirement allowance beneficiary under this
act.
(i) One elected member of a reporting unit's board of control.
(2) One of the retirement board members under subsection (1)
shall be a member who is an employee of a school district of the
first class or a school district with at least 60,000 but fewer
than 100,000 pupils in membership or a retirant who retired from a
position as an employee of a school district of the first class or
a school district with at least 60,000 but fewer than 100,000
pupils in membership. One of the retirant members of the retirement
board shall be selected from the membership of the largest
organization of retirants.
(3) The term of office of the retirement board members shall
be 4 years. A vacancy of a member on the retirement board shall be
filled in the same manner as the original appointment for the
remainder of the unexpired term. A retirement board member shall
continue to hold office until a successor is appointed and has
qualified, but not to exceed an additional 4 years.
(4)
The 7 members appointed and serving on the retirement
board
on July 1, 1997 shall have their respective terms extended by
2
years and shall serve for the remainder of their extended terms.
As
each board member's term expires under this subsection, the new
appointment
shall be made in accordance with subsection (1). On
January 1, 1997, 2 new individuals shall be appointed as members of
the
retirement board in accordance with subsection (1). The initial
terms
of office of these 2 new members shall expire on March 30,
2001.
On October 31, 1997, 2 new individuals shall be appointed as
members
of the retirement board in accordance with subsection (1).
The
initial terms of office of these 2 new members shall expire on
March 30, 2000.
(4) As used in this section, "membership" means that term as
defined in the revised school code, 1976 PA 451, MCL 380.1 to
380.1852.
Sec. 71. (1) The retirement board shall grant service credit
for the time a member is on a sabbatical leave authorized by a
reporting unit, if the member returns to regular employment with
the same reporting unit and acquires 1 year or more of subsequent
service credit with that same reporting unit and if the member
acquired 5 or more years of credited service with the reporting
unit immediately before the sabbatical leave.
(2) If the sabbatical leave described in subsection (1) is
granted before July 1, 1981, the reporting unit, if the reporting
unit had a noncontributory plan at the time the sabbatical leave is
granted, or the member, if the reporting unit has a contributory
plan at the time the sabbatical leave is granted, shall pay to the
system for each year of sabbatical leave credit an amount equal to
5% of the member's compensation earned in the school fiscal year
immediately before the school fiscal year in which the sabbatical
leave is granted, together with regular interest from the end of
the school fiscal year in which the sabbatical leave was or is
granted to the earlier of the following dates following the date of
payment, the first day of the school fiscal year beginning after
the date of payment or the first day of the seventh month of the
school fiscal year in which the payment is made. If the reporting
unit makes the payment required by this subsection, the reporting
unit also shall pay the required interest. If the member makes the
payment required by this subsection, the member also shall pay the
required interest.
(3) If the sabbatical leave described in subsection (1) is
granted after June 30, 1981, the member shall pay an amount equal
to 5% of the member's full-time or equated full-time compensation
earned in the school fiscal year immediately before the school
fiscal year in which payment is made for each year of service
credit the member elects to purchase. In computing payment under
this subsection, the compensation amount used, except as otherwise
provided in this subsection, shall not be less than the highest
school fiscal year compensation the member earned from the
reporting unit that granted the sabbatical leave. If the
compensation amount used for computing payment under this
subsection exceeds the member's final average compensation
determined at the time of retirement, the payment required under
this subsection shall be recomputed using the member's final
average compensation and a refund shall be made based upon the
recomputation.
(4) If, before October 31, 1980, either the reporting unit or
the member has contributed 5% of the member's compensation for the
school fiscal year in which the sabbatical leave was granted in
order to purchase service credit for that sabbatical leave, a
further payment for the purchase of service credit for that
sabbatical leave shall not be required. If a member has paid the
amount required under subsection (2) for the purchase of service
credit for sabbatical leave, but later receives a refund of that
amount, the member, not the reporting unit, shall repay the amount
with regular interest as required by subsection (2) if the member
elects to purchase service credit for the sabbatical leave.
(5) Effective October 1, 1981, the retirement board shall
grant service credit for the time a member is on either an employee
organization professional services leave or employee organization
professional services released time authorized by a reporting unit
if all of the following conditions are satisfied, as applicable:
(a) For a member who is on either a professional services
leave or professional services released time that first began
before October 1, 1996, which leave or released time is renewed
annually by the reporting unit, the member is included on the
reporting unit's reports required by section 42(6) and
compensation, service, contribution, and other requirements are
reported on the same basis as for those members of the reporting
unit who were not granted an employee organization professional
services leave or employee organization professional services
released time.
(b) For a member who is on either a professional services
leave or professional services released time, which leave or
released time does not meet the requirements of subdivision (a),
the member is included on the reporting unit's reports in the
manner required by subdivision (a), except that compensation is
reported at the rate of compensation paid to the member by the
reporting unit immediately preceding the date the member commenced
the professional services leave or professional services released
time along with the normal and customary compensation increases
that would have been paid to the member by the reporting unit had
the member remained in the same position held at the reporting unit
immediately preceding the date the member commenced the leave or
released time. However, if the member was not working a full 12-
month period for the reporting unit immediately preceding the date
the member commenced the professional services leave or
professional services released time and is working a full 12-month
period for the public school employee organization, the rate of
compensation paid to the member by the reporting unit immediately
preceding the date the member commenced the leave or released time
may be increased proportionately to reflect the additional time
worked for the public school employee organization. That adjusted
compensation, along with the normal and customary compensation
increases otherwise allowed in this subdivision, shall then be
reported as required in this subdivision.
(c) For a member who is on either a professional services
leave or professional services released time that first began
before October 1, 1996, which leave or released time is renewed
annually by the reporting unit, the reporting unit remits the
amount required by section 42 and the percentage of aggregate
annual compensation provided from the state school aid fund for
current service, if any, the percentage determined for unfunded
accrued service as required by section 41, and the employer's share
of social security contributions if the reporting unit is
responsible for remitting the employee's share of social security
contributions.
(d) For a member who is on either a professional services
leave or professional services released time, which professional
services leave or professional services released time does not meet
the requirements of subdivision (c), the reporting unit remits the
amounts required by subdivision (c) based upon the rate of
compensation paid to the member by the reporting unit immediately
preceding the date the member commenced the professional services
leave or professional services released time along with the normal
and customary compensation increases that would have been paid to
the member by the reporting unit had the member remained in the
same position held at the reporting unit immediately preceding the
date the member commenced the leave or released time. However, if
the member was not working a full 12-month period for the reporting
unit immediately preceding the date the member commenced the
professional services leave or professional services released time
and is working a full 12-month period for the public school
employee organization, the rate of compensation paid to the member
by the reporting unit immediately preceding the date the member
commenced the leave or released time may be increased
proportionately to reflect the additional time worked for the
public school employee organization. That adjusted compensation,
along with the normal and customary compensation increases
otherwise allowed in this subdivision, shall then be reported as
required in this subdivision.
(6) The reporting unit shall be reimbursed those sums paid to
the retirement board pursuant to subsection (5) by the member or
the public school employee organization on a current basis. A
member who has credited service as an employee of a school district
of the first class, as described in part 6 of the revised school
code,
Act No. 451 of the Public Acts of 1976, being sections
380.401
to 380.485 of the Michigan Compiled Laws, 1976 PA 451, MCL
380.401 to 380.485, or a school district with at least 60,000 but
fewer than 100,000 pupils in membership for a leave of absence
effective before October 1, 1981, shall continue to receive credit
based upon the provisions of the law of this state in effect at the
time the leave of absence was initially effective.
(7) As used in this section, "membership" means that term as
defined in the revised school code, 1976 PA 451, MCL 380.1 to
380.1852.