April 19, 2012, Introduced by Reps. LaFontaine, Goike, Cotter, Hughes, Shaughnessy, Lund, Rogers, Johnson, Agema, McMillin, Graves, Somerville, Kowall, Forlini and Jenkins and referred to the Committee on Government Operations.
A bill to amend 1957 PA 261, entitled
"Michigan legislative retirement system act,"
by amending section 26 (MCL 38.1026), as amended by 2006 PA 614.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
26. (1) The Except as
otherwise provided in subsection
(4), the retirement system shall be administered by a board of
trustees,
consisting of 11 10 persons as follows:
(a) Two members of the house of representatives appointed by
the speaker of the house of representatives.
(b) Two members of the senate, appointed in the same manner as
members of standing committees of the senate are appointed.
(c) Two retirants appointed by the speaker of the house of
representatives and 2 retirants appointed by the senate majority
leader.
(d)
One deferred vested member appointed by the speaker of the
house
of representatives and 1 deferred vested member appointed by
the
senate majority leader. If a deferred vested member serving on
the
board becomes a retirant during his or her term of office, he
or
she shall be entitled to serve the remainder of his or her term
of
office.One representative of
the general public appointed by the
speaker of the house of representatives and 1 representative of the
general public appointed by the senate majority leader.
(e)
One participant of Tier 2 who was a former member of Tier
1
appointed in 1999 by the senate majority leader and beginning in
2001
appointed alternately by the speaker of the house of
representatives
and the senate majority leader. However, if there
is
no participant of Tier 2 who meets the former member requirement
of
this subdivision, then 1 additional deferred vested member
appointed
in the manner prescribed in this subdivision.
(2)
Only members of the retirement system are eligible to
serve
as members on the board of trustees except for the retirants
and
Tier 2 participant authorized under subsection (1). Board
members
appointed under subsection (1)(a) and (b) are appointed for
2-year
terms. Board members appointed under subsection (1)(c) are
appointed
for 4-year terms. Board members appointed for terms
beginning
in 1999 under subsection (1)(d) are appointed for 2-year
terms.
Board members appointed for terms beginning in 2001 under
subsection
(1)(d) are appointed for 4-year terms. A board member
appointed
for a term beginning in 1999 under subsection (1)(e) is
appointed
for a 2-year term. Beginning in 2001, a board member
appointed
under subsection (1)(e) is appointed for a 4-year term.
(2) Board members appointed under subsection (1)(a) and (b)
shall hold office for a term of 2 years to coincide with the
legislative session. Board members appointed under subsection
(1)(c) and (d) shall hold office for a term of 4 years.
(3) Each person, whether appointed as a trustee or becoming a
trustee ex officio, shall take an oath of office before the
secretary of state, clerk of the house, or secretary of the senate,
and, upon taking the oath, qualifies as a trustee. The oath of
office shall be as prescribed under section 1 of article XI of the
state constitution of 1963.
(4)
A member of the board of trustees serving as of December
31,
2010 shall continue to serve as a member until December 31,
2011.
Beginning January 1, 2012, the board of trustees shall be
composed
of 11 members as indicated in this section and in the
bylaws.
Except as otherwise provided in this section, the 11
members
of the board shall contain at least 4 members who are
retirants,
2 members who are deferred former qualified
participants,
and at least 1 current member of Tier 2. A board
member appointed to and serving on the board of trustees on January
1, 2012 shall serve for the remainder of his or her term. As each
board member's term expires under this section, the new appointment
shall be made in the manner provided in subsection (1). If there
are insufficient persons who qualify under this section and are
willing to serve, then board members shall be appointed as
indicated in the bylaws.