SB-1189, As Passed Senate, September 27, 2012

SENATE BILL No. 1189

June 14, 2012, Introduced by Senators JANSEN, NOFS, PAVLOV, YOUNG, COLBECK, BOOHER, ANDERSON, KAHN, HANSEN and PAPPAGEORGE and referred to the Committee on Appropriations.

A bill to amend 2002 PA 100, entitled

"Public employee retirement benefit protection act,"

(MCL 38.1681 to 38.1689) by amending the title and by adding

section 8a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

An act to protect certain rights that public employees have in

retirement benefits under certain circumstances; to provide for the

establishment of certain funds and arrangements; to protect the

rights of certain members of the governing boards of retirement

systems; and to prescribe the powers and duties of certain

retirement systems, state departments, courts, public officials,

and public employees.

Sec. 8a. (1) A retirement system that has both members and

retirants of its retirement system eligible to be elected to the

position of member of the governing board shall comply with this

section.

(2) The retirement system and the political subdivision

sponsoring the retirement system shall ensure equal treatment of

all individuals who are elected or seek to be elected to the

position of member of the governing board. The retirement system or

the political subdivision sponsoring the retirement system shall

not require a retirant who is elected or seeks to be elected to the

position of member of the governing board to meet more stringent or

additional requirements to serve, be elected, or participate in the

election process than a member who is elected or seeks to be

elected to the position of member of the governing board.

(3) If the retirement system or the political subdivision

sponsoring the retirement system compensates a member who is

elected to the position of member of the governing board, the

retirement system or the political subdivision sponsoring the

retirement system shall compensate a retirant who is elected to the

position of member of the governing board at no less than the least

amount of compensation given to a member who is elected to the

position of member of the governing board.

(4) As used in this section:

(a) "Compensate" or "compensation" mean any form of

remuneration for performing duties as a member of the governing

board including stipend pay by the retirement system or working at

taxpayer expense as an employee of or under contract with the

political subdivision sponsoring the system.

(b) "Member of the governing board" means a trustee,