HB-4484, As Passed House, May 12, 2011HB-4484, As Passed Senate, May 12, 2011

SUBSTITUTE FOR

HOUSE BILL NO. 4484

     A bill to amend 1992 PA 234, entitled

"The judges retirement act of 1992,"

by amending section 720 (MCL 38.2670), as amended by 2002 PA 95.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 720. (1) Distributions Except as otherwise provided in

this section, distributions under Tier 1 or Tier 2 from employer

contributions made pursuant to section 714(2) and (3) and earnings

on those employer contributions, and distributions under Tier 1 or

Tier 2 from employee contributions made pursuant to section 714(3)

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) (2) 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) (3) 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.