HB-6271, As Passed House, September 22, 2010
June 17, 2010, Introduced by Rep. LeBlanc and referred to the Committee on Military and Veterans Affairs and Homeland Security.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 55 (MCL 38.55), as amended by 2004 PA 33.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 55. (1) "Plan document" means the document that contains
the provisions and procedures of Tier 2 in conformity with this act
and the internal revenue code.
(2) "Qualified participant" means an individual who is a
participant of Tier 2 and who meets 1 of the following
requirements:
(a) An individual who is first employed and entered upon the
payroll of his or her employer on or after March 31, 1997, and who
before March 31, 1997 would have been eligible to be a member of
Tier 1.
(b) An individual who elects to terminate membership in Tier 1
and who elects to participate in Tier 2 in the manner prescribed in
section 50.
(c) An individual who is an adjutant general or an assistant
adjutant general under the Michigan military act, 1967 PA 150, MCL
32.501 to 32.851, and who is first employed as an adjutant general
or assistant adjutant general on or after January 1, 2011.
(3) "Refund beneficiary" means an individual nominated by a
qualified participant or a former qualified participant under
section 66 to receive a distribution of the participant's
accumulated balance in the manner prescribed in section 67.
(4) "State treasurer" means the treasurer of this state.
(5) Except as otherwise provided in this subsection, "year of
service" means each period during which a qualified participant is
employed by the employer and is credited with 2,080 hours of
service. The Tier 2 plan administrator and the plan document may
provide for a lesser number of annual hours and a maximum number of
hours per pay period for any classification of employees, provided
that no participant shall receive credit for more than 1 year of
service for any 12-month period of employment. Beginning January 1,
2003, full service credit shall also be given to a participant for
furlough hours, for required 1-day layoffs, for required and
designated temporary layoffs, for a year in which a participant
temporarily leaves employment to enter active military duty and
then dies during that active military duty, and for participation
in the banked leave time program. In the event a terminated
participant is reemployed, such individual shall retain credit for
all full and partial years of service completed prior to such
reemployment, for purposes of determining his or her vesting
percentage in any employer contributions made pursuant to section
63(2) and (3) after his or her reemployment.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6270(request no.
06745'10) of the 95th Legislature is enacted into law.