Sec. 20.
(1) The members' retirement fund is created. The fund shall accumulate reserves for the payment of retirement allowances to retired members and deferred vested members as provided in this act. Upon the basis of mortality and other experience tables, and the prescribed rate of interest, as the board shall adopt, the actuary shall compute annually the amount of retirement reserves for retirement allowances being paid to retirants and covering service rendered and to be rendered by members. It is the intention of this act that the retirement reserves shall be financed by other revenues to the fund and that annual appropriations shall be determined pursuant to subsections (2), (3), and (4).
(2) The state's appropriation for current service shall be an amount that, if paid annually during the future service of members, will be sufficient to provide the reserves at the time of the members' retirement, after allowing for the net contributions to the members' savings fund to be made by the members, for the future service portions of the retirement allowances to which the members might become entitled.
(3) The state's appropriation for members' accrued service shall be an amount that if paid annually over a period of years determined by the board, but not to exceed 50 years, will amortize at the prescribed rate of interest the unfunded reserves for the accrued service portions of the retirement allowances to which the members may become entitled.
(4) The state's appropriation for retirement allowances being paid from the members' retirement fund shall be an amount that if paid annually over a period of years determined by the board, but not to exceed 50 years, will amortize at the prescribed rate of interest the unfunded reserves for the retirement allowances.
(5) Notwithstanding any other provision of this act, if the retirement board establishes an arrangement and fund as described in section 6 of the public employee retirement benefit preservation act, the benefits that are required to be paid from that fund shall be paid from a portion of the employer contributions described in this section or other eligible funds. The retirement board shall determine the amount of the employer contributions or other eligible funds that shall be allocated to that fund and deposit that amount in that fund before it deposits any remaining employer contributions or other eligible funds in the pension fund.
History: 1957, Act 261, Eff. Sept. 27, 1957 ;-- Am. 1970, Act 237, Eff. Jan. 1, 1971 ;-- Am. 1981, Act 123, Imd. Eff. July 23, 1981 ;-- Am. 2002, Act 97, Imd. Eff. Mar. 27, 2002 Compiler's Notes: In subsection (5), the reference to “public employee retirement benefit preservation act” evidently should read “public employee retirement benefit protection act” (MCL 38.1681 et seq.).
Structure Michigan Compiled Laws
Chapter 38 - Civil Service and Retirement
Act 261 of 1957 - Michigan Legislative Retirement System Act (38.1001 - 38.1080)
Section 38.1001 - Retirement System; Creation.
Section 38.1002 - Michigan Legislative Retirement System; Name.
Section 38.1003 - Construction of Terms.
Section 38.1004 - “Retirement System” Defined.
Section 38.1005 - Board; Definition.
Section 38.1006 - “Member” Defined.
Section 38.1007 - Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1007a - “Direct Rollover” and “Distributee” Defined.
Section 38.1008 - Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1008a - Definitions.
Section 38.1009 - “Salary” Defined.
Section 38.1010 - Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1012 - “Retirement Allowance” Defined.
Section 38.1013 - “Retirant” Defined.
Section 38.1013a - “Survivor,”“eligible Child,” and “Surviving Spouse” Defined.
Section 38.1014 - “Refund Beneficiary” Defined.
Section 38.1015 - Actuarial Tables; Definition.
Section 38.1016 - Prescribed Rate of Interest; Definition.
Section 38.1017 - “Fiscal Year” Defined.
Section 38.1017a - “Deferred Vested Member” Defined.
Section 38.1017b - “Leadership Position” Defined.
Section 38.1017c - “Legislator” Defined.
Section 38.1017d - “Tier 1” and “Tier 2” Defined.
Section 38.1019 - Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1021a - Member Contributions Picked Up by State.
Section 38.1022a - Income Fund; Creation; Purpose; Interest, Dividends, and Other Income; Expenses.
Section 38.1022b - Prorating and Allocating Annual Appropriations to Retirement System.
Section 38.1023a - Repealed. 1974, Act 215, Eff. Dec. 31, 1974.
Section 38.1023c - Increase of Retirement Allowance.
Section 38.1023d - Disabled Member; Retirement Allowance; Annual Examination.
Section 38.1024a - Remarriage of Surviving Spouse.
Section 38.1027 - First Board of Trustees; Organizational Meeting, Election of Officers.
Section 38.1028 - Vacancy in Trusteeship.
Section 38.1029 - Trustees; Compensation and Expenses.
Section 38.1030 - Board of Trustees; Quorum, Proxy.
Section 38.1031 - Board of Trustees; Powers and Duties.
Section 38.1033 - Board of Trustees; Authority as to Retirement Allowances, Suspensions and Refunds.
Section 38.1035 - Board of Trustees; Estimate of Appropriation.
Section 38.1036 - Repealed. 1987, Act 58, Imd. Eff. June 23, 1987.
Section 38.1036a - Reinstatement of Suspended Contributions.
Section 38.1037 - Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Section 38.1039 - Board of Trustees; Appointment of Secretary and Administrative Personnel.
Section 38.1040 - Board of Trustees; Record of Proceedings; Individual Accounts; Actuarial Data.
Section 38.1041 - Board of Trustees; Audit of Accounts; Annual Statement.
Section 38.1042 - Acceptance of Gift, Grant, or Bequest by Board.
Section 38.1043 - Individual Statement.
Section 38.1044 - Rules and Bylaws.
Section 38.1045 - Secretary of Board; Powers and Duties.
Section 38.1046 - Actuary; Technical Advisor of Board, Powers and Duties.
Section 38.1047 - State Treasurer as Ex Officio Treasurer of Retirement System; Duties.
Section 38.1049 - Payroll Voucher.
Section 38.1050 - Investment and Reinvestment of Cash Assets; Nonapplicability to Tier 2.
Section 38.1053 - Vested Interest in Refunds; Payment of Member Contributions; Discharge of Claims.
Section 38.1054 - Payments as Obligations of State; Disposition of Revenues.
Section 38.1056 - Undivided Interest in Assets of System.
Section 38.1058 - Retirement System Records; Falsification, Penalty.
Section 38.1058a - Correction of Error; Adjustment of Payment.
Section 38.1059 - Payment of Benefits; Commencement.
Section 38.1060 - Short Title.
Section 38.1064 - Meanings of Words and Phrases; “Accumulated Balance” Defined.
Section 38.1065 - “Employer,”“former Qualified Participant,” and “Health Benefit Dependent” Defined.
Section 38.1066 - “Qualified Participant,”“refund Beneficiary,” and “State Treasurer” Defined.
Section 38.1070 - Tier 2; Payment of Administrative Expenses.
Section 38.1071 - Participation in Other Public Sector Retirement Benefits Plan.
Section 38.1076 - Crediting Years of Accrued Service.
Section 38.1077 - Refund Beneficiary; Nomination.
Section 38.1078 - Distribution of Accumulated Balance.
Section 38.1079 - Health Insurance Coverage; Election; Eligibility.