February 7, 2007, Introduced by Senators GARCIA, KAHN, GILBERT and CROPSEY 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 2006 PA 617.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 75. (1) A member who left or leaves service as a public
school employee; who left or leaves out-of-system public education
service; or a member of the state employees' retirement system
under section 13 of the state employees' retirement act, 1943 PA
240, MCL 38.13, who left or leaves service as a state employee for
purposes of parental leave 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 was
claimed may purchase service credit for the time period or periods
during which the person was separated from service because of
parental leave if the member satisfies the requirements of this
section. The member shall submit an application as described in
subsection (5) and shall pay the actuarial cost to the retirement
system. 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 retirement system the
purpose for which the member took leave or was separated from
service as a public school employee; a person performing out-of-
system public education service; or a member of the state
employees' retirement system under section 13 of the state
employees' retirement act, 1943 PA 240, MCL 38.13.
(2) Service credit purchased under this section may 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 parental leave or a person who reduces hours
of out of system public education service for purposes of parental
leave 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) A member requesting purchase of service credit under this
section shall submit an application as prescribed by the retirement
system in which the member shall certify the time period claimed
for parental leave and the purpose of the parental leave. If the
request for purchase of service credit under this section is a
result of leave taken to care for the member's child by birth or
adoption, then the member also shall submit a certified copy of a
birth certificate or adoption document from the appropriate court
of jurisdiction.
(6) Parental leave is creditable under this act until the
child, by birth or adoption, attains age 18 or is married,
whichever occurs first.
(7) Service purchased under this section shall not be credited
to a member who becomes a member on or after December 31, 2007
unless the member has at least 10 years of reporting unit service
credit under this act.
(8) (7)
As used in this section,
"parental leave" means either
of the following:
(a) The presence of the member in the active participation or
supervision in the day-to-day, ongoing care or maintenance of his
or her child by birth or adoption, for which the member reduced or
eliminated the number of hours worked for the state, in out-of-
system public education service, or for the reporting unit in a
normal work time period.
(b) A member's pregnancy that occurred while a member, whether
brought to full term or not, childbirth, and recuperation, for
which the member reduced or eliminated the number of hours worked
for the state, in out-of-system public education service, or for
the reporting unit in a normal work time period.
Enacting section 1. This amendatory act takes effect January
1, 2009.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. 180
of the 94th Legislature is enacted into law.