Sec. 66.
(1) Except as provided in section 65, if a member ceases to be a public school employee for any reason, except while on official leave from service with the reporting unit, the person shall cease to be a member. The person's credited contributory membership service and credited prior service, and the noncontributory membership service credited during periods when the member contributed to the member investment plan, shall be forfeited and no longer in effect if the person withdraws the accumulated contributions from the retirement system. If the person returns to reporting unit service, the person shall again become a member. If accumulated contributions were withdrawn and the person returns for a period of not less than 1 year of credited service, the person may pay into the retirement system, before the effective date of the person's retirement, the amount withdrawn, together with simple interest on the amount withdrawn from the reserve for employee contributions and compound interest on the amount withdrawn from the reserve for member investment plan computed in each case from the date of withdrawal to the semiannual anniversary of the date of withdrawal following the date of repayment. Upon payment in full, the member shall be allowed credit for the service upon which the refund was based, which shall reinstate the previously forfeited service. However, a member who previously withdrew the contributions and who separated from reporting unit service for 60 consecutive calendar months shall not be allowed credit for the service upon which the refund was based until the member returns to service for 2 or more years of credited service and returns the accumulated contributions previously withdrawn, together with simple interest on the amount withdrawn from the reserve for employee contributions and compound interest on the amount withdrawn from the reserve for member investment plan computed in each case from the date of withdrawal to the semiannual anniversary of the date of withdrawal following the date of repayment.
(2) Upon a member's retirement or death, the member shall cease to be a member.
History: 1980, Act 300, Imd. Eff. Oct. 31, 1980 ;-- Am. 1985, Act 91, Imd. Eff. July 10, 1985 ;-- Am. 1989, Act 194, Imd. Eff. Aug. 25, 1989 Popular Name: Act 300
Structure Michigan Compiled Laws
Chapter 38 - Civil Service and Retirement
Act 300 of 1980 - The Public School Employees Retirement Act of 1979 (38.1301 - 38.1467)
Article 4 - (38.1360...38.1379b)
Section 38.1360 - Purchase of Service Credit; 2 Years Service Credit Required.
Section 38.1361 - Employment of Retirant in Reporting Unit.
Section 38.1361a - Report to Legislature on Number of Active Employed Retirees.
Section 38.1362 - Purchasing Service Credit; Proof of Service; Contribution and Interest.
Section 38.1363 - Noncontributory Plan; Applicability; Duty of Reporting Unit.
Section 38.1364 - Purchase of Service Credit.
Section 38.1368 - Service Credit; Computing Terms of Service.
Section 38.1369a, 38.1369b - Repealed. 1989, Act 194, Eff. Jan. 31, 1991.
Section 38.1369d, 38.1369e - Repealed. 1989, Act 194, Eff. Jan. 31, 1991.
Section 38.1372 - Repealed. 1989, Act 194, Imd. Eff. Aug. 25, 1989.
Section 38.1374a, 38.1374b - Repealed. 1989, Act 194, Eff. Jan. 31, 1991.
Section 38.1376 - Partial Purchase of Service Credit.
Section 38.1377, 38.1378 - Repealed. 1989, Act 194, Eff. Jan. 31, 1991.
Section 38.1379 - Actuarial Cost; Recomputation.
Section 38.1379a - Recomputation of Payment for Purchase of Service; Refund.
Section 38.1379b - "Initiate a Service Credit Purchase" Defined.