March 23, 2011, Introduced by Rep. Gilbert and referred to the Committee on Tax Policy.
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 from employer contributions made
pursuant to section 714(2) and (3) and earnings on those employer
contributions, and distributions 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 from employer
contributions made pursuant to section 714(2) and (3) and earnings
on those employer contributions, and distributions from employee
contributions made pursuant to section 714(3) 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.