November 6, 2014, Introduced by Senator KAHN and referred to the Committee on Reforms, Restructuring and Reinventing.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 64 (MCL 38.64), as amended by 2011 PA 264.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 64. (1) A qualified participant is immediately 100%
vested in his or her contributions made to Tier 2 and employer
contributions under the banked leave time program. Except as
otherwise
provided in this section, a qualified participant shall
vest
vests in the employer contributions made on his or her
behalf
to Tier 2 according to the following schedule:
(a) Upon completion of 2 years of service, 50%.
(b) Upon completion of 3 years of service, 75%.
(c) Upon completion of 4 years of service, 100%.
(2) A qualified participant is eligible for the health
insurance coverage provided in section 68 if the qualified
participant meets 1 of the following requirements:
(a) The qualified participant has completed 10 years of
service as a qualified participant, was not a member, deferred
member, or former nonvested member of Tier 1, was first employed
and entered upon the payroll of his or her employer before January
1, 2012, and did not make an election to opt out of health
insurance coverage under section 68b.
(b) The qualified participant was a member, deferred member,
or former nonvested member of Tier 1 who made an election to
participate
in Tier 2 pursuant to under
section 50, and who has met
the service requirements he or she would have been required to meet
in order to vest in health benefits under section 20d.
(3) A qualified participant who is appointed after December
31, 2014 by the governor to occupy an unclassified position in the
state civil service, or to an appointed legislative position
pursuant to authority of the legislature, is immediately 50% vested
in the employer contributions made on his or her behalf to Tier 2
and vests in the remaining employer contributions made on his or
her behalf to Tier 2 according to the following schedule:
(a) Upon completion of 1 year of service, 75%.
(b) Upon completion of 2 years of service, 100%.