October 20, 2005, Introduced by Rep. Hunter 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 75 (MCL 38.1375), as amended by 1989 PA 194.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
75. (1) A member who left or leaves service as a public
school
employee for purposes of maternity or paternity or child
rearing,
and returns to service as a public school employee, or a
person
performing out of system public education service who leaves
that
service for purposes of maternity, paternity, or child rearing
and
who subsequently becomes a member of this retirement system,
without
other intervening employment of more than 20 hours per week
for
each week for which service credit is claimed, may purchase
service
credit for the time period or periods during which the
person
was separated from service as a public school employee or
during
which the person was separated from performing out of system
public
education service because of maternity or paternity or child
rearing,
upon request and payment to the retirement system of the
actuarial
cost. The total service credited under this section shall
not
exceed 5 years. A member requesting purchase of service credit
under
this section shall certify to the board the purpose for which
the
member took leave and was separated from service as a public
school
employee. A member who leaves service as a public school
employee for maternity, paternity, or child rearing and who returns
to service as a public school employee may purchase service credit
for the time that the member was separated from service as a public
school employee because of maternity, paternity, or child rearing.
A person who leaves out-of-system public education service for
maternity, paternity, or child rearing and who subsequently becomes
a member may purchase service credit for the time that the person
was separated from performing out-of-system public education
service because of maternity, paternity, or child rearing. A person
who becomes a member of this retirement system may purchase service
credit for maternity, paternity, or child rearing that the member
was engaged in before becoming a member. A member shall not
purchase service credit under this section if there has been other
intervening employment of more than 20 hours a week for each week
that service credit is claimed. The total service credited under
this section shall not exceed 5 years. A member shall make the
request to purchase service credit under this section and pay the
actuarial cost as determined under subsection (5) before the
service is credited. A member who requests to purchase service
credit under this section shall certify to the board that the
member was engaged in maternity, paternity, or child rearing for
the period that the member is requesting to purchase the service
credit.
(2)
Service credit purchased under this section may shall
not be used to satisfy the minimum of 10 years of service credit
required to receive a retirement allowance under this act.
(3) If a member who made payment under this section dies and a
retirement allowance beneficiary has not been designated, or if the
member leaves reporting unit service before his or her retirement
becomes effective, the payment made by the member shall be refunded
upon request to the member or to the member's refund beneficiary.
(4) A member who reduces hours of employment with a reporting
unit for purposes of maternity, paternity, or child rearing or a
person who reduces hours of out of system public education service
for purposes of maternity, paternity, or child rearing and who
subsequently becomes a member of this retirement system may
purchase service credit for those hours by which employment was
reduced if all other requirements of this section are met.
(5) Notwithstanding section 79, for 1 year after the effective
date of the amendatory act that added this subsection, actuarial
cost for service credit purchased under this section shall be
calculated by using the age of the member at the time the member
first became a public school employee. Actuarial cost for service
credit purchased under this section shall be calculated under
section 79 for all years after the first year after the effective
date of the amendatory act that added this subsection.