HB-4484, As Passed House, April 28, 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.