HOUSE BILL No. 5320

January 31, 2012, Introduced by Reps. Rutledge, Heise, Cotter, Wayne Schmidt, Potvin, Foster, Goike, Outman, Shirkey, Lane, Zorn, Bledsoe, Haugh and Stanley and referred to the Committee on Appropriations.

A bill to amend 1980 PA 300, entitled

"The public school employees retirement act of 1979,"

by amending section 7 (MCL 38.1307), as amended by 1995 PA 272.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 7. (1) "Refund beneficiary" means 1 or more persons whom

the member or former member nominates in writing and files with the

retirement system for the purpose of being paid accumulated

contributions in the event of the death of the member or former

member. If a valid nomination is not on file, the retirement board

shall pay the accumulated contributions to the legal representative

of the deceased member or deceased former member, if any, or to the

estate of the deceased member or deceased former member.

(2) "Regular interest" means interest at 1 or more rates per

annum determined by the retirement board and compounded annually.

(3) Except as otherwise provided in this subsection,

"reporting unit" means a public school district, intermediate

school district, public school academy, tax supported community or

junior college, or university, or an agency having employees on its

payroll who are members of this retirement system. The reporting

unit shall be the employer for purposes of this act. On and after

January 1, 1996, reporting unit does not include a university,

except to the extent that university has employees on its payroll

who are members of this retirement system. On and after January 1,

2012, reporting unit does not include a qualified tax-supported

community or junior college except to the extent that the community

or junior college has employees on its payroll who are members of

the system.

(4) "Retirant" means a member who retires with a retirement

allowance payable from reserves of the retirement system.

(5) "Retirement allowance" means a payment for life or a

temporary period provided for in this act to which a retirant,

retirement allowance beneficiary, or refund beneficiary is

entitled.

(6) "Retirement allowance beneficiary" means a person who is

being paid or has entitlement to the payment of a retirement

allowance in the event of the death of a member, deferred member,

or retirant.

(7) "Retirement board" means the board provided to administer

this retirement system.

(8) "Retirement system" means the Michigan public school