Michigan Compiled Laws
Article VII - (38.2651...38.2670)
Section 38.2670 - Distributions; Exemption From Tax; Subject to Taxation Beginning January 1, 2012; Right of Setoff to Recover Overpayments; Satisfaction of Claims Arising From Embezzlement or Fraud; Correction of Errors.

Sec. 720.
(1) Except as otherwise provided in this section, distributions under Tier 1 or Tier 2 from employer contributions and earnings on those employer contributions, and distributions under Tier 1 or Tier 2 from employee contributions and earnings on those employee contributions, are exempt from any state, county, municipal, or other local tax.
(2) Beginning January 1, 2012, distributions under Tier 1 or Tier 2 from employer contributions and earnings on those employer contributions, and distributions under Tier 1 or Tier 2 from employee contributions and earnings on those employee contributions, are subject to state tax.
(3) The state treasurer has the right of setoff to recover overpayments made under this act and to satisfy any claims arising from embezzlement or fraud committed by a qualified participant, former qualified participant, refund beneficiary, or other person who has a claim to a distribution or any other benefit from Tier 2.
(4) The state treasurer shall correct errors in the records and actions in Tier 2 under this act, and shall seek to recover overpayments and shall make up underpayments.
History: Add. 1996, Act 523, Eff. Mar. 31, 1997 ;-- Am. 2002, Act 95, Imd. Eff. Mar. 27, 2002 ;-- Am. 2011, Act 45, Imd. Eff. May 25, 2011

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Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 38 - Civil Service and Retirement

Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670)

Article VII - (38.2651...38.2670)

Section 38.2651 - Participation in Tier 1 or Tier 2 by Member, Vested Former Member, or Former Nonvested Member; Election; Writing; Irrevocability; Method; Election Subject to Domestic Relations Order Act; Disqualification for Tax Purposes; Election...

Section 38.2651a - Participation of Judge of Circuit Court, Probate Court, or District Court in Tier 1 or Tier 2; Election; Window of Opportunity; Method; Disqualification for Tax Purposes.

Section 38.2651b - Election Pursuant to MCL 38.2651 or MCL 38.2651a.

Section 38.2652 - Termination of Membership; Transfer, Recomputation, and Calculation by Retirement System.

Section 38.2652a - Termination of Membership in Tier 1 Pursuant to MCL 38.2651a; Definitions; Transfer to Account in Tier 2; Calculation; Disqualification for Tax Purposes.

Section 38.2653 - Calculation and Submission of Cost Savings.

Section 38.2654 - Meanings of Words and Phrases; “Accumulated Balance” Defined.

Section 38.2655 - “Employer,”“former Qualified Participant,” and “Health Benefit Dependent” Defined.

Section 38.2656 - “Qualified Participant,”“refund Beneficiary,”“salary,” and “State Treasurer” Defined.

Section 38.2657 - Administration of Tier 2 by State Treasurer.

Section 38.2658 - Hearing.

Section 38.2659 - Direction of Investment by Qualified Participant, Former Qualified Participant, and Refund Beneficiary.

Section 38.2660 - Administrative Expenses.

Section 38.2661 - Participation in Other Retirement Benefits Plan; Prohibition.

Section 38.2662 - Judge or State Official; Election Not to Participate or to Discontinue Participation in Tier 2.

Section 38.2663 - Election to Terminate Membership in Tier 1; Credit or Charge to Tier 2 Account.

Section 38.2664 - Contributions by Employer and Participant.

Section 38.2665 - Vesting Requirements.

Section 38.2666 - Participation in Tier 2; Crediting Years of Service Accrued Under Tier 1.

Section 38.2667 - Refund Beneficiary.

Section 38.2668 - Methods of Distribution.

Section 38.2669 - Health Insurance Coverage.

Section 38.2670 - Distributions; Exemption From Tax; Subject to Taxation Beginning January 1, 2012; Right of Setoff to Recover Overpayments; Satisfaction of Claims Arising From Embezzlement or Fraud; Correction of Errors.