Act No. 492

Public Acts of 2012

Approved by the Governor

December 27, 2012

Filed with the Secretary of State

December 28, 2012

EFFECTIVE DATE: December 28, 2012

STATE OF MICHIGAN

96TH LEGISLATURE

REGULAR SESSION OF 2012

Introduced by Senators Jansen, Nofs, Pavlov, Young, Colbeck, Booher, Anderson, Kahn, Hansen and Pappageorge

ENROLLED SENATE BILL No. 1189

AN ACT to amend 2002 PA 100, entitled “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; and to prescribe the powers and duties of certain retirement systems, state departments, courts, public officials, and public employees,” (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, commissioner, or other official member of the governing board vested with the general administration, management, and operation of the retirement system or other decision-making body that is responsible for implementation and supervision of a retirement system.

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor