February 12, 2004, Introduced by Reps. Phillips, Hart, Sheltrown, Meyer, Voorhees, Rivet, Richardville, Plakas, Hunter, Hune, Gaffney, Whitmer, Minore, Stallworth, Drolet, Palsrok, Zelenko, Bieda, Kolb, Farrah, Clack, Vagnozzi, Cheeks, Williams, Waters, Hood and Daniels and referred to the Committee on Education.
A bill to amend 1980 PA 300, entitled
"The public school employees retirement act of 1979,"
by amending section 61 (MCL 38.1361), as amended by 2001 PA 30.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 61. (1) Except as otherwise provided in this section,
2 if a retirant is receiving a retirement allowance other than a
3 disability allowance payable under this act or under former 1945
4 PA 136, on account of either age or years of personal service
5 performed, or both, and becomes employed by a reporting unit, the
6 following shall take place:
7 (a) The retirant shall not be entitled to a new final average
8 compensation or additional service credit under this retirement
9 system unless additional service is performed equivalent to 5 or
10 more years of service credit or, if the retirant has contributed
11 to the member investment plan, the equivalent of 3 or more years
1 of service credit. The retirant may elect to have the retirement
2 allowance recomputed based on the added credit or the final
3 average compensation resulting from the added service, or both.
4 A retirement allowance shall not be recomputed until the retirant
5 pays into the retirement system an amount equal to the retirant's
6 new final average compensation multiplied by the percentage
7 determined under section 41(2) for normal cost and unfunded
8 actuarial accrued liabilities, not including the percentage
9 required for the funding of health benefits, multiplied by the
10 total service credit in the period in which the retirant's
11 additional service was performed.
12 (b) The retirant's retirement allowance shall be reduced by
13 the lesser of the amount that the earnings in a calendar year
14 exceed the amount permitted without a reduction of benefits under
15 the social security act, chapter 531, 49 Stat. 620, or 1/3 of the
16 retirant's final average compensation. For purposes of computing
17 allowable earnings under this subdivision, the final average
18 compensation shall be increased by 5% for each full year of
19 retirement.
20 (2) The retirement system may offset retirement benefits
21 payable under this act against amounts owed to the retirement
22 system by a retirant or retirement allowance beneficiary.
23 (3) Subsection (1) does not apply to a retirant if all of the
24 following circumstances exist:
25 (a) The retirant is a former teacher or administrator
26 employed in a teaching or research capacity by a university that
27 is considered a reporting unit for the limited purpose described
1 in section 7(3).
2 (b) The retirant is not eligible to use any service or
3 compensation attributable to the employment described in
4 subdivision (a) for a recomputation of his or her retirement
5 allowance.
6 (c) A university that employs a retirant pursuant to this
7 subsection shall report such employment to the retirement system
8 by July 1 of each year. The report to be filed shall include the
9 name of the retirant, the capacity in which the retirant is
10 employed, and the total annual compensation paid to the
11 retirant.
12 (4) Until July 1, 2006, subsection (1) does not apply to a
13 retirant if all of the following circumstances exist:
14 (a) The retirant is employed by a reporting unit that has an
15 approved emergency situation, not including a situation caused by
16 a labor dispute, that necessitates the hiring of a retirant in
17 the capacity of a teacher, principal, stationary engineer, or
18 administrator to prevent depriving students of an education. The
19 chief executive officer or superintendent of the school district
20 shall include with the written notification documentation showing
21 that more than 8% of all classes in the district during the
22 1998-99 school year are taught by full-time substitute teachers
23 who are not certificated in the subjects or grade levels which
24 they teach. Within 30 days after receipt of the notification and
25 documentation under this subdivision, the department of education
26 shall notify the chief executive officer or superintendent and
27 the retirement system of its approval or disapproval of the
1 emergency situation. If disapproved by the department of
2 education, this subsection does not apply.
3 (b) The retirant is employed under an emergency situation
4 described in subdivision
(a) for a period not to exceed 3 10
5 years.
6 (c) The retirant is not eligible to use any service or
7 compensation attributable to the employment described in
8 subdivision (a) for a recomputation of his or her retirement
9 allowance.
10 (5) On or before
July 1, 1999, the The state superintendent
11 of public instruction shall annually compile a listing of
12 critical shortage
disciplines. This listing shall be updated
13 annually.
14 (6) Until July 1, 2006, subsection (1) does not apply to a
15 retirant if all of the following circumstances exist:
16 (a) The retirant is employed by a reporting unit that has a
17 situation, not including a situation caused by a labor dispute,
18 that necessitates the hiring of a retirant in an area that has
19 been identified by the state superintendent of public instruction
20 as a critical shortage discipline pursuant to subsection (5).
21 (b) The retirant is employed under a situation described in
22 subdivision (a) for a period not to exceed 3 years.
23 (c) The retirant is not eligible to use any service or
24 compensation attributable to the employment described in
25 subdivision (a) for a recomputation of his or her retirement
26 allowance.
27 (7) The provisions of subsections (4) and (6) shall only
1 apply for retirants who retired on or before July 1, 2000.