Sec. 20j.
(1) Beginning April 1, 2012, the calculation of a retirement allowance under this act for a member who did not make the election under section 50a shall include only the following items of credited service, as applicable:
(a) The years and fraction of a year of credited service accrued to that member before April 1, 2012.
(b) Credit for years of service under sections 18(1) and 49(10).
(c) Service credit that was purchased before April 1, 2012.
(d) Service credit that is purchased under a payment plan pursuant to this act that was in effect as of March 31, 2012.
(2) Beginning April 1, 2012, the calculation of a retirement allowance under this act for a member who did not make the election under section 50a shall include only the following items of compensation:
(a) Compensation received by the member before April 1, 2012.
(b) Up to 240 hours of accrued annual leave paid at separation multiplied by the hourly rate of pay for the member as of March 31, 2012, which for purposes of final average compensation shall be treated as being paid on March 31, 2012.
(3) Beginning on April 1, 2012, a member who did not make the election under section 50a shall continue to accumulate years of service credit after becoming a qualified participant in Tier 2 only as necessary for the purpose of vesting in a retirement allowance and to determine when a retirement allowance under Tier 1 may begin under this act, except as otherwise provided in section 50a(7).
(4) A member who did not make the election under section 50a shall continue to be treated as a member for purposes of Tier 1, except as otherwise provided in section 50a(7) and except for the limitations on credited service and compensation as provided in subsections (1) and (2).
(5) Beginning April 1, 2012, the calculation of a retirement allowance under this act for a member who makes the election under section 50a(1) and the designation under section 50a(2) shall include only the following items of credited service, as applicable:
(a) The years and fraction of a year of credited service accrued to that member on or before the attainment date.
(b) Credit for years of service under sections 18(1) and 49(10).
(c) Service credit that was purchased on or before the attainment date.
(d) Service credit that is purchased under a payment plan pursuant to this act that was in effect as of the attainment date.
(6) Beginning April 1, 2012, the calculation of a retirement allowance under this act for a member who makes the election under section 50a(1) and the designation under section 50a(2) shall include only the following items of compensation:
(a) Compensation received by the member on or before the attainment date.
(b) Up to 240 hours of accrued annual leave paid at separation multiplied by the hourly rate of pay for the member as of the attainment date, which for purposes of final average compensation shall be treated as being paid on the attainment date.
(7) Beginning on April 1, 2012, a member who makes the election under section 50a(1) and the designation under section 50a(2) shall continue to accumulate years of service credit after becoming a qualified participant in Tier 2 only as necessary to determine when a retirement allowance under Tier 1 may begin under this act, except as otherwise provided in section 50a(7).
(8) A member who makes the election under section 50a(1) and the designation under section 50a(2) shall continue to be treated as a member for purposes of Tier 1, except as otherwise provided in section 50a(7) and except for the limitations on credited service and compensation as provided in subsections (5) and (6).
(9) As used in this section, "attainment date" means the final day of the pay period in which the member attains 30 years of credited service or the date the member terminates employment, whichever first occurs.
History: Add. 2011, Act 264, Imd. Eff. Dec. 15, 2011 Compiler's Notes: Enacting section 1 of Act 264 of 2011 provides:"Enacting section 1. If the office of retirement services in the department of technology, management, and budget receives notification from the United States internal revenue service that any section or any portion of a section of this amendatory act will cause the retirement system to be disqualified for tax purposes under the internal revenue code, then the portion that will cause the disqualification does not apply."
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.