HOUSE BILL No. 5679

 

 

March 1, 2018, Introduced by Reps. Miller, Griffin, Pagel and Whiteford and referred to the Committee on Financial Liability Reform.

 

     A bill to amend 1980 PA 300, entitled

 

"The public school employees retirement act of 1979,"

 

by amending sections 5 and 124 (MCL 38.1305 and 38.1424), section 5

 

as amended by 2017 PA 92 and section 124 as amended by 2012 PA 300.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5. (1) "Member" means a public school employee, except

 

that member does not include any of the following:

 

     (a) An individual enrolled in a neighborhood youth corps

 

program operated with funds from the federal office of economic

 

opportunity or an individual enrolled in a comparable youth

 

training program designed to prevent high school dropouts and

 

rehabilitate high school dropouts operated by an intermediate

 

school district.

 

     (b) An individual enrolled in a transitional public employment

 

program and employed by a reporting unit.


     (c) An individual employed by a reporting unit while enrolled

 

as a full-time student in that same reporting unit.

 

     (d) An individual who elects to participate in the optional

 

retirement program under the optional retirement act of 1967, 1967

 

PA 156, MCL 38.381 to 38.388.

 

     (e) A retirant of this retirement system.

 

     (f) An individual, not regularly employed by a reporting unit,

 

who is employed by a reporting unit through a summer youth

 

employment program established under the Michigan youth corps act,

 

1983 PA 69, MCL 409.221 to 409.229.

 

     (g) An individual, not regularly employed by a reporting unit,

 

who is employed by a reporting unit to administer a program

 

described in subdivision (f), (h), (i), (j), or (k).

 

     (h) After September 30, 1983, an individual, not regularly

 

employed by a reporting unit, who is employed by a reporting unit

 

through participation in a program established under the former job

 

training partnership act, Public Law 97-300, 96 Stat 1322 or

 

beginning July 1, 2000, the workforce investment act of 1998,

 

Public Law 105-220, 112 Stat 936.

 

     (i) An individual, not regularly employed by a reporting unit,

 

who is employed by a reporting unit through participation in a

 

program established under the PATH program under section 57f of the

 

social welfare act, 1939 PA 280, MCL 400.57f.

 

     (j) An individual, not regularly employed by a reporting unit,

 

who is employed by a reporting unit through participation in a

 

program established under the Michigan community service corps

 

program, first established under sections 25 to 35 of 1983 PA 259.


     (k) An individual, not regularly employed by a reporting unit,

 

who is employed by a reporting unit through participation in a

 

program established under the older American community service

 

employment program under the older American community service

 

employment act, title V of the older Americans act of 1965, Public

 

Law 89-73, 42 USC 3056 to 3056p.

 

     (l) An individual, not regularly employed by a reporting unit,

 

who is employed by a reporting unit in a temporary, intermittent,

 

or irregular seasonal or athletic position and who is under the age

 

of 19 years.

 

     (m) An individual, not regularly employed by a reporting unit,

 

who is employed by a reporting unit only in a temporary position to

 

assist in the conduct of a school election.

 

     (n) A qualified participant who makes a valid election under

 

section 81d(1) to not become a member of Tier 1.

 

     (o) A qualified participant who is not a member of Tier 1

 

under section 81d(4).

 

     (p) Beginning on the effective date of the amendatory act that

 

added this subdivision, an individual who is primarily a student

 

while employed by a tax supported community college or junior

 

college. For the purpose of this subdivision, an individual is

 

"primarily a student" if the individual is enrolled in a tax

 

supported community college or junior college in a course of study

 

for academic credit while normally working 30 or less hours per

 

week for the tax supported community college or junior college.

 

     (2) "Membership service" means service performed after June

 

30, 1945.


     (3) "Noncontributory plan" means the plan which began between

 

July 1, 1974 and July 1, 1977, in which the reporting unit elected

 

to discontinue withholding contributions from employees'

 

compensation.

 

     (4) "Noncontributory service" means credited service rendered

 

under the noncontributory plan.

 

     (5) "Nonteacher" means an individual employed by a reporting

 

unit who is not a teacher as defined in section 8.

 

     Sec. 124. (1) "Plan document" means the document that contains

 

the provisions and procedures of Tier 2 in conformity with this act

 

and the internal revenue code.

 

     (2) "Qualified participant" means an individual who is a

 

participant of Tier 2 and who is first employed and entered upon on

 

the payroll of his or her employer on or after July 1, 2010, and

 

who also was not employed by any employer before July 1, 2010,

 

except that beginning on the effective date of the amendatory act

 

that added section 5(1)(p), qualified participant does not include

 

an individual who is primarily a student while employed by a tax

 

supported community college or junior college. For purposes of this

 

subsection, an individual is "primarily a student" if the

 

individual is enrolled in a tax supported community college or

 

junior college in a course of study for academic credit while

 

normally working 30 or less hours per week for the tax supported

 

community college or junior college.

 

     (3) "Refund beneficiary" means an individual nominated by a

 

qualified participant or a former qualified participant under

 

section 134 to receive a distribution of the participant's


accumulated balance in the manner prescribed in section 135.

 

     (4) "State treasurer" means the treasurer of this state.