There is a newer version of the Michigan Compiled Laws
2015 Michigan Compiled Laws
Chapter 38 - Civil Service and Retirement
Act 240 of 1943 STATE EMPLOYEES' RETIREMENT ACT (38.1 - 38.69)
AN ACT to provide for a state employees' retirement system; to create a state employees' retirement board and prescribe its powers and duties; to establish certain funds in connection with the retirement system; to require contributions to the retirement system by and on behalf of members and participants of the retirement system; to create certain accounts and provide for expenditures from those accounts; to prescribe the powers and duties of certain state and local officers and employees and certain state departments and agencies; to prescribe and make appropriations for the retirement system; and to prescribe penalties and provide remedies.
History: 1943, Act 240, Eff. July 30, 1943 ;-- Am. 1957, Act 232, Eff. Sept. 27, 1957 ;-- Am. 1984, Act 3, Eff. May 1, 1984 ;-- Am. 1989, Act 297, Imd. Eff. Jan. 3, 1990 ;-- Am. 1996, Act 389, Imd. Eff. Sept. 30, 1996 ;-- Am. 1996, Act 487, Eff. Mar. 31, 1997 ;-- Am. 2002, Act 99, Imd. Eff. Mar. 27, 2002
- 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 38.1d Definitions.
- 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 38.2 State employees' retirement system; creation; administration by retirement board; rules.
- Section 38.3 Retirement board; appointment and terms of members.
- Section 38.4 Retirement board; vacancies, vacation of office.
- Section 38.5 Retirement board; oath; quorum; conducting business at public meeting; notice of meeting; compensation and expenses.
- Section 38.6 Retirement board; officers and employees.
- Section 38.7 Retirement system; actuarial valuation of assets and liabilities; investigation of mortality, service, and compensation of members.
- Section 38.8 Administrative board; investment of funds, purchase of life insurance or annuity, deposits.
- 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 38.11 Employees' savings fund, employer's accumulation fund, annuity reserve fund, pension reserve fund, income fund, expense fund, and health insurance reserve fund; creation; health advance funding subaccount; description of funds as reference to accounting records of retirement system.
- Section 38.12 Annual statement of retirement funds in custody of state treasurer; availability of report and other writings to public; request for statement of credit.
- Section 38.13 Membership in retirement system.
- Section 38.13a Blind or partially sighted licensed vending stand operators deemed employees; rights and benefits; eligibility; contribution as condition to service credit; blindness not deemed retirable disability; employer cost.
- Section 38.13b Credited service to include credit for service rendered to joint federal-state commission; conditions.
- 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 38.17a Use of credited service acquired in employ of governmental unit; “governmental unit of the state” defined.
- Section 38.17b Credited service to include service rendered certain universities.
- Section 38.17c Retirement system service credit for period of service under county department of social services; conditions.
- Section 38.17d Credited service to include service rendered to department of state police or its predecessor agencies, or to court of record; conditions.
- Section 38.17e, 38.17f Repealed. 1998, Act 205, Eff. Aug. 1, 1998.
- Section 38.17g Parental leave; purchase of service credit.
- Section 38.17h Full-time service as employee with city, county, township, or village of this state; purchase of service credit.
- Section 38.17i Full-time service with federal government or as state employee with another state; purchase of service credit.
- Section 38.17j Purchase of combined total of more than 10 years prohibited; purchase of service credit in separate increments; future purchases not barred; refund; actuarial cost.
- Section 38.17k Repealed. 1998, Act 205, Eff. Aug. 1, 1998.
- Section 38.17l Purchase of additional service credit by employee of state accident fund, Michigan biologic products institute, or liquor control commission.
- Section 38.17m Purchase of service credit; limitation; refund.
- Section 38.17n City employee; transfer or purchase of service credit.
- Section 38.18 Credit for military or federal service; credit for prior service; conditions; computation.
- Section 38.19 Retirement upon written application to retirement board; retirement without reduction in retirement allowance; definitions; layoff status because agency or inpatient facility designated for closure; conditions; certification; application; funding additional costs; employees of state accident fund, Michigan biologic products institute, or liquor control commission.
- Section 38.19a Retirement upon satisfaction of certain requirements; monthly retirement allowance supplement; benefits, salary, or remuneration precluding payment under subsection (2); payment of sick leave; payment by retirement system; amount payable by principal departments; member considered retirant; deposit by principal department; use of deposits; exception; monthly payment by Michigan employment security commission; service credit for participation in pay reduction plan C; death of retirant or applicant for retirement.
- Section 38.19b Right to retire and receive retirement allowance computed under MCL 38.20(1); application period; requirements; payment for accumulated sick leave in 60 monthly installments.
- Section 38.19c Right to retire and receive retirement allowance computed under MCL 38.20(1); application period; requirements; payment for accumulated sick leave in 60 monthly installments.
- Section 38.19d Right to retire and receive retirement allowance computed under MCL 38.20(1); application period; requirements; payment for accumulated sick leave in 60 monthly installments.
- Section 38.19e Right to retire and receive retirement allowance computed under MCL 38.20(1); application period; requirements; payment for amounts entitled to receive at retirement.
- Section 38.19f Retirement and receipt of retirement allowance; requirements; accumulated sick leave; request to extend effective date of retirement; calculation; state contract prohibited.
- Section 38.19g Member meeting certain requirements on or before November 1, 2002; computation of retirement allowance; payment of accumulated sick leave or annual leave; extension of effective date; participant in Tier 2.
- Section 38.19h Payments not tax exempt and subject to certain operations of law.
- Section 38.19i Retirement allowance; computation; accumulated sick leave; purchase of service credit; hiring under contract; limitation.
- Section 38.19j Retirement; requirements; accumulated annual leave, sick leave, and deferred leave hours; forfeiture; inclusion in calculation for determination of final average compensation; extension; request; retirement allowance calculation; "incentivized retirement application period" defined.
- Section 38.20 Computation of retirement allowance; right to elect option; retirement before age 65; death of retirant; separation from service; department of mental health employee termination; recalculation and payment of retirement allowance; eligibility of state accident fund or Michigan biologic products institute employees to health care benefits and certain rights, privileges, and benefits.
- Section 38.20a Minimum retirement allowance.
- Section 38.20b Increase in monthly retirement allowance; payment.
- Section 38.20c Supplement to retirement allowance.
- Section 38.20d Hospitalization, medical, dental, and vision coverage insurance premium; computation and allocation of cost savings; payment by retirement board; “retirant” defined.
- Section 38.20e Supplemental retirement allowance; amount; payment.
- Section 38.20f Supplement to retirement allowance payable on or after September 30, 1976.
- Section 38.20g Determining rate of investment return on retirement system assets and present value of retirement allowances; calculation and reduction of distribution income; crediting distribution units to retirant or retirement allowance beneficiary; calculation and payment of distribution amount; effect of death; increase in retirement allowance; computation of cumulative increase amount; supplemental payment.
- Section 38.20h Supplemental payments for retirants or retirement allowance beneficiaries with retirement allowance effective date before October 1, 1986; future adjustments.
- Section 38.20i Supplement.
- Section 38.20j Member not making election under MCL 38.50a; calculation of retirement allowance beginning April 1, 2012; items of compensation; accumulation of service credit; member making election under MCL 38.50a(1) and designation under MCL 38.50a(2); calculation of retirement allowance; items of compensation; accumulation of service credit; treatment of member as Tier 1; "attainment date" defined.
- Section 38.21 Duty disability retirement.
- Section 38.22 Retirement for disability at age 60; service retirement allowance; crediting 10 years of service.
- 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 38.27 Death resulting from personal injury or disease arising out of and in course of state employment; survivor benefits.
- Section 38.27a Retirement allowances granted under MCL 38.27; adjustment.
- Section 38.28 Withdrawal of member before retirement; refund of contributions; restoration on re-employment; court administrator.
- Section 38.29 Death before retirement; refund of contributions.
- Section 38.30 Withholding refund of contributions.
- Section 38.31 Election of regular retirement allowance or reduced retirement allowance; payment options; designation of beneficiary; effect of beneficiary's death or divorce; request by nonduty disability retirant to change elections; death of member before effective date of retirement.
- Section 38.32 Remarriage of surviving spouse.
- Section 38.33 Disability retirant under age 60; medical examination required; reduction of retirement allowance on account of gainful employment.
- Section 38.34 Disability retirant; reinstatement to service, service credits allowable.
- Section 38.35 Contribution of 3% of employee compensation to funding account; "funding account" defined; refund of amounts contributed under subsection (1).
- Section 38.35a Election under MCL 38.50a; contribution.
- Section 38.36, 38.37 Repealed. 1974, Act 216, Imd. Eff. July 19, 1974.
- Section 38.38 Annual level percent of payroll contribution rate; determination; basis; report; computation; amortization of unfunded actuarial accrued liability; annual appropriation to retirement system; transfer of funds; certification; difference between actual state contributions and product of contribution rates times aggregate compensations paid; submitting difference between estimated and actual aggregate compensation and estimated and actual contribution rate to legislature for appropriation; interest; deposit to health advance funding subaccount.
- Section 38.39 Repealed. 1982, Act 316, Imd. Eff. Oct. 18, 1982.
- Section 38.39a Reserves for retirement allowances; legislative determination of funds from which appropriations made.
- Section 38.40 Allowances, benefits, and other rights; exemption from taxation; subject to tax beginning January 1, 2012; subject to public employee retirement benefit protection act.
- 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 38.45 Definitions.
- Section 38.46 Retirement or separation from employment of supplemental member with supplemental early retirement allowance; conditions; determination of eligibility.
- Section 38.47 Temporary straight life supplemental early retirement allowance; payment; computation; electing optional form of payment.
- Section 38.47a Report.
- Section 38.48 Conservation officers.
- Section 38.49 Administration of retirement system as qualified pension plan under internal revenue code; requirements and benefit limitations; qualified military service.
- Section 38.50 Election to terminate participation in Tier 1 and to participate in Tier 2; irrevocability; termination of employment; reemployment of deferred or former nonvested member; method of election; signature of spouse; waiver; election subject to eligible domestic relations order act; effect of disqualification notice from United States internal revenue service; exception.
- Section 38.50a Election to continue receiving credit for future service and compensation; designation; failure to make election; rescission; reemployment of former nonvested member; "attainment date" defined.
- 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 38.57 Hearing.
- Section 38.58 Investment of employer and employee contributions and earnings; direction by participant.
- 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 38.67a Duty disability retirement allowance; supplemental benefit; health insurance coverage; exception.
- Section 38.68 Health insurance coverage.
- Section 38.68a Appropriation amount; purpose; work project; estimated completion date.
- Section 38.68b Participant employed on or after January 1, 2012 or making election under subsection (5) or (6); health insurance coverage; contribution to tax-deferred account; opt-out; calculation of amount under subsection (7) and adjustment under subsection (8); implementation of subsections (5) to (11); method; report.
- Section 38.68c Employment of retiree receiving retirement allowance; cessation of retirement payment; applicability; "employed by this state" defined; coordination of benefits provision; exceptions to subsection (1).
- Section 38.68d Administration of changes; appropriation.
- Section 38.68e Appropriation.
- Section 38.69 Exemptions from taxation; subject to public employee retirement benefit protection law; right of setoff to recover overpayments; satisfaction of claims arising from embezzlement or fraud; correction of errors in records and actions.
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