January 24, 2012, Introduced by Reps. Dillon, Hovey-Wright, Bauer, Brunner, Cavanagh, Barnett, Ananich, Geiss, Slavens, Roy Schmidt, Haugh, Lane, Heise and Oakes 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 2010 PA 75.
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:apply:
(a)
The retirant shall is 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). A university that employs a retirant under this
subsection shall report that employment to the retirement system by
July 1 of each year. The university shall include the name of the
retirant, the capacity in which the retirant is employed, and the
total annual compensation paid to the retirant in the report.
(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 which 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, 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,
administrator,
or other category as determined by the
superintendent
of public instruction 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)
The state superintendent of public instruction shall
compile
a listing of critical shortage disciplines. This listing
shall
be updated annually.
(6)
Until July 1, 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)
Subsection (6) shall only apply for retirants who have
been
retired for at least 12 months before becoming employed under
this
section.
(4) (8)
Notwithstanding any other provision
of this act to the
contrary, for any a retirant who retires on and
or after July 1,
2010, and following a bona fide termination, including not working
in the month of the retirant's retirement effective date, and who
becomes employed by a reporting unit or as otherwise described in
this subsection and the retirant's amount of earnings in a calendar
year exceeds 1/3 of the retirant's final average compensation, the
retirant shall forfeit his or her retirement allowance and the
retirement system subsidy for health care benefits from the
retirement system for as long as the retirant is employed at the
reporting unit or as otherwise described in this subsection. Any
retirant who has forfeited the retirement system subsidy for health
care benefits and wants to retain health care benefits shall pay
the retirant's and retirement system's costs for such health care
benefits. Upon termination of employment at the reporting unit or
as otherwise described in this subsection, the retirement allowance
and health care benefits shall resume without recalculation. A
retirant who retires on or after July 1, 2010, who performs
substitute teaching services at a reporting unit, but who is
employed by an entity other than the reporting unit or is an
independent contractor, is subject to this subsection and not
subsection (5).
(5) (9)
Notwithstanding any other provision
of this act to the
contrary,
except as provided in subsection (4),
for any a retirant
who
retires on and or after July 1, 2010, who performs core
services at a reporting unit as determined by the retirement
system, but who is employed by an entity other than the reporting
unit or is an independent contractor, the retirant shall forfeit
his or her retirement allowance and the retirement system subsidy
for health care benefits from the retirement system for as long as
the retirant is performing core services at the reporting unit. Any
retirant who has forfeited the retirement system subsidy for health
care benefits and wants to retain health care benefits shall pay
the retirant's and retirement system's costs for such health care
benefits. Upon termination of services at the reporting unit, the
retirement allowance and health care benefits shall resume without
recalculation.