HOUSE BILL No. 6543

November 9, 2010, Introduced by Reps. Meadows and Griffin and referred to the Committee on Oversight and Investigations.

 

     A bill to amend 1980 PA 300, entitled

 

"The public school employees retirement act of 1979,"

 

by amending section 43e (MCL 38.1343e), as added by 2010 PA 75.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 43e. (1) Except as otherwise provided in this section,

 

beginning July 1, 2010 and continuing through June 30, 2013, each

 

member shall contribute 3% of the member's compensation to the

 

appropriate funding account established under the public employee

 

retirement health care funding act. For the school fiscal year that

 

begins July 1, 2010, members who were employed by a reporting unit

 

and were paid less than $18,000.00 in the prior school fiscal year

 

and members who were hired on or after July 1, 2010 with a starting

 

salary less than $18,000.00 shall contribute 1.5% of the member's

 


compensation to the appropriate funding account established under

 

the public employee retirement health care funding act. For each

 

school fiscal year that begins on or after July 1, 2011 and before

 

July 1, 2013, members whose yearly salary is less than $18,000.00

 

shall contribute 3% of the member's compensation to the appropriate

 

funding account established under the public employee retirement

 

health care funding act. The member contributions shall be deducted

 

by the employer and remitted as employer contributions in a manner

 

that the retirement system shall determine.

 

     (2) As used in this act, "funding account" means the

 

appropriate irrevocable trust created in the public employee

 

retirement health care funding act for the deposit of funds and the

 

payment of retirement health care benefits.