Sec. 17j.
(1) On and after June 23, 1987, a member who is otherwise entitled to purchase service credit under section 17g, 17h, 17i, 17k, 17l, 17m, or 17n shall not purchase a combined total of more than 10 years of service credit under those sections.
(2) On and after June 23, 1987, a member who under section 17c, 17g, 17h, 17i, 17k, 17l, 17m, 17n, or 18(2) is otherwise entitled to purchase service credit may purchase the service credit in separate increments equal to 1 or more full years, or a remaining fraction of a year, if any, or both. Partial purchase of service credit under this section does not bar future purchases otherwise in compliance with this section and the provisions of this act authorizing the purchase, but computation of the amount of payment due shall be made separately for each purchase.
(3) If a member who made payment under this section dies and a retirement allowance is not payable or if the member leaves service with this state before his or her retirement allowance becomes effective, the payment made by the member shall be refunded upon request to the member, to the person designated by the member in writing to the board, or if a person is not designated, then to the member's legal representative or estate.
(4) Actuarial cost shall be equal to the product of subdivisions (a), (b), and (c), as follows:
(a) A percentage, determined by the retirement board and the department, that when multiplied by a member's compensation, as determined under subdivision (b), results in the average actuarial present value of the additional benefits resulting from the crediting of 1 additional year of service. The percentage may vary because of age, credited service, or benefit coverage. An increase or decrease in the percentage under this subdivision shall not become effective before the expiration of 6 months or more after the retirement board notifies the members of the increase or decrease.
(b) A member's compensation. The member's compensation shall be the member's full-time or equated full-time compensation earned in the fiscal year immediately before the fiscal year in which the application to purchase and payment for the service are made. The compensation amount used shall not be less than the highest compensation previously earned by the member.
(c) The number of years, including any fraction of a year, of credited service a member elects to purchase up to the maximum allowed.
History: Add. 1987, Act 57, Imd. Eff. June 23, 1987 ;-- Am. 1989, Act 9, Eff. July 1, 1989 ;-- Am. 1998, Act 205, Eff. Aug. 1, 1998 ;-- Am. 2002, Act 93, Imd. Eff. Mar. 27, 2002
Structure Michigan Compiled Laws
Chapter 38 - Civil Service and Retirement
Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69)
Section 38.1 - Short Title; Meanings of Words and Phrases.
Section 38.1a - Definitions; A, B.
Section 38.1b - Definitions; B, C.
Section 38.1c - Definitions; D.
Section 38.1e - Definitions; F to I.
Section 38.1f - Definitions; M to O.
Section 38.1g - Definitions; P.
Section 38.1h - Definitions; R.
Section 38.1i - Definitions; S, T.
Section 38.3 - Retirement Board; Appointment and Terms of Members.
Section 38.4 - Retirement Board; Vacancies, Vacation of Office.
Section 38.6 - Retirement Board; Officers and Employees.
Section 38.9 - State Treasurer as Custodian of Retirement System Funds; Powers and Duties.
Section 38.10 - Retirement Board Members and Employees; Interest in Investments Prohibited.
Section 38.13 - Membership in Retirement System.
Section 38.14 - Information Required of Members by Retirement Board.
Section 38.15 - Original Members; Prior Service Certification.
Section 38.16 - Cessation of Membership; Reemployment.
Section 38.17 - Service Credited From State Board of Control for Vocational Education; Conditions.
Section 38.17b - Credited Service to Include Service Rendered Certain Universities.
Section 38.17e, 38.17f - Repealed. 1998, Act 205, Eff. Aug. 1, 1998.
Section 38.17g - Parental Leave; Purchase of Service Credit.
Section 38.17k - Repealed. 1998, Act 205, Eff. Aug. 1, 1998.
Section 38.17m - Purchase of Service Credit; Limitation; Refund.
Section 38.17n - City Employee; Transfer or Purchase of Service Credit.
Section 38.19h - Payments Not Tax Exempt and Subject to Certain Operations of Law.
Section 38.20a - Minimum Retirement Allowance.
Section 38.20b - Increase in Monthly Retirement Allowance; Payment.
Section 38.20c - Supplement to Retirement Allowance.
Section 38.20e - Supplemental Retirement Allowance; Amount; Payment.
Section 38.20f - Supplement to Retirement Allowance Payable on or After September 30, 1976.
Section 38.21 - Duty Disability Retirement.
Section 38.23 - Retirement for Disability Before Attaining Age 60; Benefits.
Section 38.24 - Non-Duty Disability Retirement.
Section 38.25 - Retirement for Disability.
Section 38.26 - Repealed. 1955, Act 237, Eff. Oct. 24, 1955.
Section 38.27a - Retirement Allowances Granted Under MCL 38.27; Adjustment.
Section 38.29 - Death Before Retirement; Refund of Contributions.
Section 38.30 - Withholding Refund of Contributions.
Section 38.32 - Remarriage of Surviving Spouse.
Section 38.34 - Disability Retirant; Reinstatement to Service, Service Credits Allowable.
Section 38.35a - Election Under MCL 38.50a; Contribution.
Section 38.36, 38.37 - Repealed. 1974, Act 216, Imd. Eff. July 19, 1974.
Section 38.39 - Repealed. 1982, Act 316, Imd. Eff. Oct. 18, 1982.
Section 38.41 - Correction of Errors in Payment of Retirement Allowances.
Section 38.42 - Retirement System Records; Falsification, Penalty.
Section 38.43 - Repealed. 1997, Act 148, Eff. Jan. 30, 1998.
Section 38.44 - Rights, Privileges, and Benefits of Vested Employee.
Section 38.44a - Member Employed by State Judicial Council.
Section 38.48 - Conservation Officers.
Section 38.51 - Transfer of Lump Sum Amount.
Section 38.52 - Calculation of Accrued Cost Savings for Each Fiscal Year.
Section 38.53 - Meanings of Words and Phrases; Definitions; a to C.
Section 38.54 - Definitions; E to H.
Section 38.55 - Definitions; P to Y.
Section 38.56 - State Treasurer; Powers and Duties.
Section 38.59 - Payment of Administrative Expenses.
Section 38.60 - Other Public Sector Retirement Benefits Plan; Participation.
Section 38.61 - Election by Elected or Appointed Official.
Section 38.62 - Transfer of Amount; Crediting and Charging Participant Account.
Section 38.63 - Contributions by Employer and Participant.
Section 38.63a - Tier 2 and Tax-Deferred Accounts; Terms and Conditions.
Section 38.64 - Tier 2; Vesting Requirements.
Section 38.65 - Crediting Years of Service Accrued.
Section 38.66 - Refund Beneficiary.
Section 38.67 - Distributions of Accumulated Balance.
Section 38.68 - Health Insurance Coverage.
Section 38.68a - Appropriation Amount; Purpose; Work Project; Estimated Completion Date.
Section 38.68d - Administration of Changes; Appropriation.