HOUSE BILL No. 5550

 

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.