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Municipal Employees' Retirement System of Michigan Plan Document
(As revised through December 31, 1999)
Page 1 of 9
Table of Contents
ARTICLE 1. GENERAL PROVISIONS
Section 1 Short Title [MCL 38.1501]
Section 2 Meanings of Words and Phrases [MCL 38.1502]
Section 2A Definitions: A through L [MCL 38.1502a]
Section 2B Definitions: M through O [MCL 38.1502b]
Section 2C Definitions: P through Z [MCL 38.1502c]
Section 3 Membership
ARTICLE II. SERVICE CREDIT
Section 4 Credited Service; Forfeiture; Reinstatement
Section 5 Combining Credited Service
Section 6 Credit for Certain Qualifying Service; Conditions; Crediting Payment
under Subsection (1) (c)
Section 7 Credited Service: Election to Purchase Not More Than 5 Years of
Credited Service
Section 8 Election to come under Reciprocal Retirement Act
Section 9 Credit Service for Period of Active Duty; Conditions
ARTICLE III. RETIREMENT REQUIREMENTS AND BENEFIT PROGRAM
Section 10 Retirement; Requirements; Allowance; Benefit Programs
Section 11 Adoption for Temporary Period of Benefit Programs or Combination of
Benefit Programs; Contents of Resolution or Administrative Order; Retirement
under Section 10 During Temporary Period; Limitation
Section 12 Vested Former Member; Requirements
Section 13 Benefit Program A: Retirement Allowance
Section 14 Benefit Program B: Retirement Allowance
Section 15 Benefit Program B-1: Retirement Allowance
Section 16 Benefit Program B-2: Retirement Allowance
Section 16A Benefit Program B-3: Retirement Allowance
Section 16B Amount of Retirement Allowance under Benefit Program B-4
Section 17 Benefit Program C-New and C-Old: Retirement Allowance
Section 18 Benefit Program C-1 New and C-1 Old: Retirement Allowance
Section 19 Benefit Program C-2; Adoption; Retirement Allowance
Section 19A Benefit Program DC; Adoption; Contributions; Distribution
Section 20 Benefit Program E; Adoption or Readoption; Effective Date; Adjustment
Date; Adjustment Factor; Prohibition
Section 21 Benefit Program E-1; Adoption or Readoption; Effective Date;
Applicability; Adjustment Dates; Maximum Cumulative Adjustment Limitation; Base
Amount of Retirement Allowance; Adjustment Factor
Section 22 Benefit Program E-2; Adoption; Effective Date; Applicability;
Adjustment Dates; Maximum Cumulative Adjustment Limitation; Base Amount of
Retirement Allowance; Adjustment Factor
Section 23 Forms of Payment; Election; Naming of Survivor Beneficiary; Failure
to Make Timely Election; Amount of Retirement Allowance; Election if Member
Married at Retirement Allowance Effective Date; Signature of Spouse; Effect on
Election if Retirant Divorced From Spouse Named as Survivor Beneficiary
Section 23A Adoption of Benefit Program RS50%; Specifying Effective Date of
Change in Coverage; Duration and Amount of Payment to Surviving Spouse;
"Surviving Spouse" Defined
Section 24 Retirement of Incapacitated Member; Conditions; Medical Examinations;
Effective Date of Disability Retirement; Amount of Disability Retirement
Allowance; Exceptions
Section 25 Disability Retirant Under Age 60; Periodic Medical Examination;
Suspension; Revocation, or Discontinuance of Disability Pension; Conditions to
Restoration of Terminated Disability Retirant's Actual Credited Service; Service
Not Credited for Period of Disability; Terminated Disability Retirant as Vested
Former Member
Section 26 Conditions to Payment of Retirement Allowance for Surviving Spouse;
Commencement and Amount of Payment; Conditions to Payment of Retirement
Allowance to Surviving Child, Restriction; Termination and Amount of Surviving
Child's Retirement Allowance; Presumptions
Section 27 Death Resulting From Injury or Disease Arising Out of and in Course
of Duty; Additional Provision Applicable to Section 26
Section 27A Remarriage of Surviving Spouse
Section 28 Contingent Survivor Beneficiary
Section 29 Provisions Applicable During Period Between Effective Date of
Disability Retirement Allowance and Date Disability Attains Age 60 or Where
Adopted by Resolution, the Age for Age and Service Retirement
Section 30 Commencement, Termination, and Change in Retirement Allowance
Section 31 Employment by Participating Municipality or Court; Special Conditions
ARTICLE IV. CONTRIBUTIONS
Section 32 Contribution Programs
Section 33 Contribution Program P
Section 34 Difference Between Retirant's Accumulated Contributions and Aggregate
Amount of Retirement Allowance Payments Made; Payment
Section 35 Payment of Accumulated Contributions
ARTICLE V. RETIREMENT BOARD ADMINISTRATION
Section 36 Retirement Board; Creation; Board as Public Corporation; Powers and
Duties; Administrative Functions; Membership; Rules of Procedure; Record of
Proceedings; Quorum; Voting; Term of Office; Oath; Expenses; Absence of Member
From Work; Vacancy; Chairperson and Chairperson Pro tem; Executive Director [MCL
38.1536]
Section 36A Denial of Benefits; Hearing Process; Appeal to Retirement Board
Section 36B Indemnification
Section 37 Audit Report
Section 38 Experience Tables; Data and Information; Actuarial Operation and
Investigations
Section 39 Retirement Board as Trustee of Money and Other Assets; Investments;
Investment Counsel; Purpose of Investments; Discretionary Authority [MCL
38.1539]
Section 40 Prohibited Conduct [MCL 38.1540]
Section 41 Election to Become Participating Municipality; Vote; Specifying
Effective Date of Participation and Applicable Benefit Contribution Programs;
Establishment of Benefit and Contribution Program Coverage Classifications;
Certifications of Participation; Conditions to Participation
Section 41A Election to Become Participating Court; Administrative Order;
Resolution; Specifying Effective Date of Participation and Applicable Benefit
and Contribution Programs; Classifications; Certification of Participation;
Conditions to Participation
Section 42 Actuarial Determination of Contribution Requirements
Section 43 Election to Change Benefit Contribution Programs; Vote; Specifying
Effective Date of Change in Coverage and Applicable Benefit and Contribution
Programs; Coverage Classification and Certification Conditions; Accrued Benefit
Not Reduced by Change; Certification of Determination; Actuarial Determination
of Contribution Requirements
Section 43A Election of Participating Court to Change Benefit and Contribution
Programs; Administrative Order; Resolution; Specifying Effective Date of Change
in Coverage and Applicable Benefit and Contribution Programs; Coverage
Classification and Certification Conditions; Accrued Benefit Not Reduced By
Change; Certification of Determination; Actuarial Determination of Contribution
Requirements
Section 43B Collective Bargaining Agreements; Benefit Modifications; Extension
of Modified Benefits to Non-bargaining Groups
Section 44 Election to Terminate Participation; Vote; Certification of
Determination; Effective Date of Termination of Participation; Effect of
Termination; Disposition of Balance in Reserve
Section 44A Election of Participating Court to Terminate Participation; Vote,
Certification of Determination; Effective Date of Termination of Participation;
Effect of Termination; Disposition of Balance in Reserve
Section 45 Annual Meeting; Selection of Members to Retirement Board; Transaction
of Business; Notice of Meeting; Certification of Delegates; Conduct of Election;
Nominating Procedures; Referendum [MCL 38.1545]
ARTICLE VI. FUNDING AND RESERVES
Section 45A Funding Objective of Retirement System; Contribution Requirement;
Notice and Payment of Contribution Obligation; Interest and Penalty Charge
Section 46 Reserve for Employee Contributions; Subaccounts; Deduction of
Contributions from Compensation of Member; Consent and Agreement to Deduction;
Discharge and Acquittance of Claims and Demands; Certification of Compensation
Paid; Payment of Aggregate Amount of Contributions to Retirement System;
Remittance of Member Contributions; Interest and Penalty Charge
Section 46A Reserve for Defined Contribution Plan
Section 46B Transfers of Excess Assets to Reserve for Defined Contribution Plan
Section 47 Reserve For Employer Contributions and Benefit Payments; Subaccounts
Section 48 Reserve For Retired Benefit Payments; Subaccounts
Section 49 Reserve for Excess Casualty Experience; Transfers; Stop Loss Program
Section 50 Reserve for Expenses and Undistributed Income; Transfer; Contingency
Reserves
Section 51 Expenses for Administration of Retirement System; Payment
Section 52 Allocation of Undistributed Investment Income
ARTICLE VII. MISCELLANEOUS
Section 53 Rights Neither Subject to Process of Law Nor Assignable; Exceptions;
Limitation; Right of Setoff; Transfers of Money and Assets to Another Retirement
System
Section 54 Corrections of Errors in Records; Recovery of Overpayments; Making up
Underpayments
Section 55 Intent; Retirement System as Qualified Pension Plan and Trust as
Exempt Organization; etc.
Section 56 Severability
Section 57 Repeal
APPENDIX
A-1 Procedure for Review of Formal Requests for Changes to MERS Plan Document
B-1 Former Section 38.1506
B-2 Former Section 38.1509
Page 1 of 9
"Our Present is Your Future"
Municipal Employees' Retirement System of Michigan Plan Document
(As revised through December 31, 1999)
Page 2 of 9
PA 220 of 1996 provided the Municipal Employees? Retirement System with the
power to establish additional retirement system provisions including, but not
limited to, defined benefit and defined contribution programs for its
participating municipalities and participating courts.
The Board of the Municipal Employees Retirement System of Michigan approves:
ARTICLE I. GENERAL PROVISIONS
Section 1 Short Title [MCL 38.1501]
Section 2 Meanings of Words and Phrases [MCL 38.1502]
Section 2A Definitions: A through L [MCL 38.1502a.]
Section 2B Definitions: M through O [MCL 38.1502b.]
Section 2C Definitions: P through Z [MCL 38.1502c.]
Section 3 Membership
Sec. 1. Short Title. [MCL 38.1501] Top
This act [1984 PA 427, as amended by 1996 PA 220] shall be known and may be
cited as the ?municipal employees retirement act of 1984.? [This Plan Document
shall be known and may be cited as the "Municipal Employees? Retirement System
Plan Document of 1996." The Plan shall be effective commencing October 1, 1996.
This Plan includes all defined benefit provisions in effect as of 12:01 a.m. on
August 15, 1996 pursuant to 1996 PA 220, sec. 36(2)(a), sec. 38.1536 (2)(a) of
the Michigan Compiled Laws.]
History: 1984 PA 427, Eff. Jan. 2, 1985, and 1996 PA 220, Eff. Aug. 15, 1996,
and Plan Document of 1996.
Note 1: 1996 PA 220, enacting section 2, repealed effective August 15, 1996, the
majority of the provisions of the Municipal Employees Retirement Act of 1984,
except for 9 sections: section 1, MCL 38.1501; sections 2-2c, MCL 38.1502-1502c;
section 36, MCL 38.1536; section 39, MCL 38.1539; section 40, MCL 38.1540; and
section 45, MCL 38.1545.
Note 2: Bracketed text added.
Note 3: On July 8, 1997, the Internal Revenue Service issued its Letter of
Favorable Determination that the Plan Document of 1996 conforms to the
provisions of the Internal Revenue Code applicable to governmental plans.
Sec. 2. Meanings of Words and Phrases. [MCL 38.1502] Top
For the purposes of this Act [and Plan], the words and phrases defined in
sections 2A through 2C have the meanings ascribed to them in those sections.
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996; see Sec. 1,
Note 1of this Plan.
Sec. 2A. Definitions A through L. [MCL 38.1502a.] Top
(1) "Accumulated balance" means the total balance in a member's, vested former
member's, or beneficiary's individual account under Benefit Program DC.
(2) "Accumulated contributions" means the sum of all amounts credited to a
member's individual account in the reserve for employee contributions.
(3) "Beneficiary" means an individual who is being paid or who has entitlement
to the future payment of a retirement allowance or a return of contributions on
account of a reason other than the individual's membership in the retirement
system.
(4) "Certification date" means [August 15, 1996] the date certified in the
election results filed with the secretary of state pursuant to enacting section
4 of [1996 PA 220].
(5) "Chief judge" means the chief judge of a judicial circuit court, a judicial
district court, or a judicial probate court as provided in the Revised
Judicature Act of 1961, Act No. 236 of the Public Acts of 1961, being sections
600.101 to 600.9947 of the Michigan Compiled Laws.
(6) "Compensation" means the salary or wages paid a member for personal services
rendered the member's participating municipality or participating court while a
member of the retirement system. Salary and wages shall include longevity pay,
overtime pay, shift differentials; pay for periods of absence from work by
reason of vacation, holiday, and sickness; deferred compensation amounts under
deferred compensation programs recognized by the board, including premiums for
annuities and permanent life insurance policies that are transferred to the
ownership of the member upon retirement; worker's compensation weekly benefits
if the participating municipality or participating court reports the worker's
compensation benefit to the retirement system; and items of a similar nature
that are recognized as compensation by the board. Compensation does not include
any remuneration or reimbursement not specifically described in this subsection
or recognized by the board, such as allowances for clothing, equipment,
cleaning, and travel; reimbursement of expenses, bonuses; termination pay; severance pay;
payments in consideration of unused sick leave; the value of fringe benefits;
and items of remuneration that are the basis of a potential or actual benefit
from another retirement program. If the participating municipality or
participating court has adopted Benefit Program DC, compensation equals the
Medicare taxable wages as reported by the employer on the member's federal form
W-2, wage and tax statement.
(7) "Direct rollover" means a payment by the retirement system to the eligible
retirement plan specified by the distributee.
(8) "Distributee" includes a member or vested former member. Distributee also
includes the member's or vested former member's surviving spouse or the member's
or vested former member's spouse or former spouse under an eligible domestic
relations order, with regard to the interest of the spouse or former spouse.
(9) Except as otherwise provided in this subsection, "eligible retirement plan"
means an individual retirement account described in section 408(a) of the
Internal Revenue Code, an individual retirement annuity described in section
408(b)
of the Internal Revenue Code, an annuity plan described in section 403(a) of the
Internal Revenue Code, or a qualified trust described in section 401(a) of the
Internal Revenue Code, that accepts the distributee's eligible rollover
distribution. However, in the case of an eligible rollover distribution to a
surviving spouse, an eligible retirement plan means an individual retirement
account or an individual retirement annuity described above.
(10) "Eligible rollover distribution" means a distribution of all or any portion
of the balance to the credit of the distributee. Eligible rollover distribution
does not include any of the following:
(a) A distribution made for the life or life expectancy of the distributee or
the joint lives or joint life expectancies of the distributee and the
distributee's designated beneficiary.
(b) A distribution for a specified period of 10 years or more.
(c) A distribution to the extent that the distribution is required under section
401(a)(9) of the Internal Revenue Code.
(d) The portion of any distribution that is not includable in federal gross
income, determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities.
(11) "Final average compensation" means any of the following:
(a) One-fifth of the aggregate amount of compensation paid a member during the
period of 5 consecutive years of the member's credited service in which the
aggregate amount of compensation paid is highest, known as FAC-5. If the member
has less than 5 years of credited service, final average compensation means the
aggregate amount of compensation paid the member divided by the member's
credited service. A member who has credited service in force with more than 1
participating municipality or participating court shall have a separate final
average compensation computed based on the member's compensation record with
each participating municipality and participating court.
(b) If the participating municipality or participating court has adopted benefit
program FAC-3, l/3 of the aggregate amount of compensation paid a member during
the period of 3 consecutive years of the member's credited service in which the
aggregate amount of compensation paid is highest. If the member has less than 3
years of credited service, final average compensation means the aggregate amount
of compensation paid the member divided by the member's credited service. A
member who has credited service in force with more than 1 participating
municipality or participating court shall have a separate final average
compensation computed based on the member's compensation record with each
participating municipality or participating court.
(c) For a member who is a judge of the district court, the recorder's court of
the city of Detroit, or the circuit court, and has converted a portion or all of
his or her state salary standardization payment as provided for in section 504
of the Judges Retirement Act of 1992, Act No. 234 of the Public Acts of 1992,
being section 38.2504 of the Michigan Compiled Laws, as an addition to his or
her state base salary under Act No. 234 of the Public Acts of 1992, being
sections 38.2101 to 38.2670 of the Michigan Compiled Laws, the difference
between the figure that would otherwise be used under subdivision (a) or (b) to
compute the member's retirement benefits, and the amount of the state salary
standardization payment converted.
(12) "Governing body" means the representative legislative body of a
municipality, or the administrative board or commission of a public corporation
or instrumentality that does not have a representative legislative body.
(13) "Internal Revenue Code" means the United States Internal Revenue Code of
1986.
(14) "Judicial circuit court" means a judicial circuit of the circuit court as
provided in section 11 of article VI of the state constitution of 1963.
(15) "Judicial district court" means a judicial district of the district court
as provided in section 8101 of the Revised Judicature Act of 1961, Act No. 236
of the Public Acts of 1961, being section 600.8101 of the Michigan Compiled
Laws.
(16) Judicial employee" means an individual who is paid compensation for
personal service rendered for a participating court. Judicial employee does not
include anyone who is a municipal employee under section 2B(3) or anyone who is
specifically excluded as a municipal employee under section 2B(3).
(17) "Judicial probate court" means a county probate court or probate court
district as provided in section 15 of article VI of the state constitution of
1963.
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996; see Sec.1,
Note 1 of this Plan.
Note: The 1996 PA 220 amendments are reflected in text of subsections (4), (5),
(12), (14), (15) and (17). Bracketed text in (4) added.
Sec. 2B. Definitions M through O. [MCL 38.1502b.] Top
(1) "Member" means an individual [municipal employee or judicial employee] who
is included in the membership of the retirement system as determined by the
Retirement Board.
(2) "Membership service" means personal service rendered a participating
municipality or participating court while a member of the retirement system.
(3) "Municipal employee" means an individual who is paid compensation for
personal services rendered for a participating municipality. Payment of
compensation by a hospital, board, commission, public corporation, or
instrumentality created by a municipality is considered payment by the
municipality. Municipal employee does not include any of the following:
(a) The mayor, village president, or a member of the governing body of a
participating municipality, unless the individual files a written application
for membership with the retirement system. By written election in the form
prescribed by MERS, and signed by the member's spouse, a member whose membership
exists by virtue of having filed an application for membership under this
subsection (3)(a) may irrevocably elect to be excluded from membership (and any
membership rights or benefits arising from service under this subsection) under
the following conditions:
(1) The election is made while the member occupies a position under this
subsection (3)(a).
(2) For the period in which the member has occupied a position under this
subsection (3)(a), the member shall be paid the member's accumulated
contributions, if any, and all credited service for the period shall be
forfeited in all cases.
(3) The individual shall not again become a member of the retirement system on
account of occupying a position under this subsection (3)(a) for the same
municipality.
(4) The individual's forfeited credited service and any service rendered the
participating municipality during any time the individual was excluded from
membership shall never be reinstated or credited to the individual under
Sections 4 or 6, or for any other purpose under the Plan Document.
(b) An individual who is employed on a basis that exempts the participating
municipality from the withholding provisions of the internal revenue code.
(c) An individual, except a county elected official, who is wholly paid on a fee
basis.
(d) An individual who is an active member as of January 1, 1983, of the State of
Michigan probate judges retirement system created by the former Probate Judges
Retirement Act, former Act No. 165 of the Public Acts of 1954, being former
sections 38.901 to 38.933 of the Michigan Compiled Laws and who continued in
service as a probate judge under the successor act, the Judges' Retirement Act
of 1992, 1992 PA 234, sections 38.2101 to 38.2670 of the Michigan Compiled Laws.
(e) A person, not regularly employed by the participating municipality, who is
employed by the municipality through participation in a program established
pursuant to the Job Training Partnership Act, Public Law 97-300, 96 Stat. 1322.
In addition, a person described in this subdivision shall not receive service
credit for the employment described in this subdivision even though the person
subsequently becomes or has been a member of the retirement system.
(f) A person, not regularly employed by the participating municipality, who is
employed by the municipality through participation in a program established
pursuant to the Michigan opportunity and skills training program first provided
for under sections 12 to 23 of Act No. 259 of the Public Acts of 1983. In
addition, a person described in this subdivision shall not receive service
credit for the employment described in this subdivision even though the person
subsequently becomes or has been a member of this retirement system.
(g) A person, not regularly employed by the participating municipality, who is
employed by the municipality through participation in a program established
pursuant to the Michigan community service corps program first provided for
under sections 25 to 35 of Act No. 246 of the Public Acts of 1984. In addition,
a person described in this subdivision shall not receive service credit for the
employment described in this subdivision even though the person subsequently
becomes or has been a member of this retirement system.
(h) A person, not regularly employed by the participating municipality, who is
employed by the municipality to administer a program described in subdivision
(e), (f), or (g) shall not be a member of this retirement system.
(i) An individual who is, on the effective date of the municipality's or court's
participation under this Plan or the predecessor Act, a member of another
retirement system that is sponsored by the participating municipality or
participating court if that individual remains as a member of the other
retirement system.
(4) "Municipality" means a county, county road commission, city, village,
township, or a combination of these units; a lawful public corporation or
instrumentality established by 1 or more counties, cities, villages, townships,
or a combination of these units; or a public corporation or instrumentality
charged by law with the performance of a governmental function and whose
jurisdiction is coextensive with 1 or more counties, cities, villages,
townships, or a combination of these units.
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996; see Sec. 1,
Note 1 of this Plan.
Note 1: The 1996 PA 220 amendments are reflected in text of subsections (1) and
(4). Bracketed text in (1) added.
Note 2: Bold text in subparagraph 3(a) added by Board action of February 25,
1998, with immediate effect.
Sec. 2C. Definitions P through Z. [MCL 38.1502c.] Top
(1) "Participating court" means a judicial circuit court, a judicial district
court, or a judicial probate court that has elected to be governed by the
provisions of this [Plan or the predecessor] Act.
(2) "Participating municipality" means a municipality that has elected to be
governed by the provisions of: [(a) this Plan; or (b)] this Act [1984 PA 427, or
its predecessor 1945 PA 135]. Two or more municipalities may enter into an
agreement with each other and the retirement system to participate as a combined
unit.
(3)"Prior service" means certified personal service rendered a municipality or a
judicial circuit court, judicial district court, or judicial probate court by a
member prior to the date the municipality or judicial circuit court, judicial
district court, or judicial probate court became a participating municipality or
participating court. The participating municipality or participating court shall
certify to the retirement system, in writing, the amount of prior service to be
credited each member in its employ. The participating municipality or
participating court may limit the period of certified prior service to either a
percentage of the member's total period of prior service or a stated number of
years. Certification of prior service shall be made prior to the retirement of a
member, in the form and at the time prescribed by the Retirement Board. Prior
service credit shall not be recognized for the purpose of calculating a
retirement allowance under this Plan unless all of the following requirements
are met:
(a) The municipality or court transfers to the retirement system assets from the
preceding qualified plan and/or other source equal to at least fifty percent
(50%)
of prior service accrued liabilities (as determined under MERS assumptions).
Should assets actually transferred be less than fifty percent (50%) of such
liabilities, then all prior service recognized shall be in strict proportion to
the assets transferred.
(b) Unfunded actuarial accrued liabilities, if any, arising from prior service
shall be funded over a 30-year amortization schedule.
(c) In the event any alteration of this section 2c(3) is made or occurs, under
section 43b of the plan document concerning collective bargaining or under any
other plan provision or law, MERS prior service shall not be recognized, other
than in accordance with this section.
(4) "Public corporation" means the retirement system on and after the
certification date, which corporation is an instrumentality of the participating
municipalities and participating courts.
(5) "Retirant" means an individual who is being paid a retirement allowance on
account of the individual's membership in the retirement system.
(6) "Retirement allowance" means an annual amount payable in monthly
installments by the retirement system, whether payable for a temporary period or
throughout the future life of a retirant or beneficiary.
(7) "Retirement benefit" means a retirement allowance, refund of accumulated
contributions, or amounts paid to a distributee. The term includes distributions
under section 19A, Benefit Program DC. The term does not include any
post-retirement
or other ancillary benefit or payment, which may become available under the Plan
Document or the retirement system.
(8) "Retirement board" means the retirement board provided for in section 36 to
administer the retirement system.
(9) "Retirement system" or "system" means the municipal employees retirement
system established by former Act No. 135 of the Public Acts of 1945, and
continued and restated by this Act [1984 PA 427 and the Plan Document on and
after the certification date].
(10) "Vested former member" means a person who meets the requirements of section
12.
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996; see Sec. 1,
Note 1 of this Plan.
Note 1: The 1996 PA 220 amendments are reflected in text of subsections (1),
(2), (4), (8) and (9). Bracketed text in (1) and (2) and (9) added.
Note 2: Former text at end of Section 5(1) inserted verbatim in subsection (3)
as last full sen-tence preceding (3)(a), and (3)(a)-(b), per Board action of May
20, 1998, with immediate effect.
Note 3: Bold text in subsection (3)(a)-(b) revised, and (3)(c) added, by Board
action of September 28, 1999, to be effective January 1, 2000.
Sec. 3. Membership. Top
(1) Each municipal employee of a participating municipality and each judicial
employee of a participating court, who is employed in a position regularly
requiring at least 10 days or a specified number of hours of work in a calendar
month, shall be a member of the retirement system unless excluded from
membership in accordance with subsection (2) or (3). A day of work or the
specified number of hours of work in a calendar month shall be defined by
resolution of the governing body of each participating municipality or by
administrative order of the chief judge of each participating court. The
resolution or administrative order shall be uniformly applicable to all members
employed by the participating municipality or participating court who are
covered by the same benefit program coverage classification. Benefit program
coverage classification shall be those established by the Retirement Board
pursuant to the provisions of sections 41 and 41A. A certified copy of the
resolution or administrative order shall be filed with the Retirement Board
within 10 days after adoption or issuance.
(2) A participating municipality or participating court may exclude temporary
municipal employees or judicial employees from membership in the retirement
system. The participating municipality or participating court shall notify, in
writing, each temporary municipal employee or judicial employee excluded from
membership. A municipal employee or judicial employee shall not be designated a
temporary municipal employee or judicial employee if employed in a position
normally requiring 6 or more months of work. Exclusion of a temporary municipal
employee or judicial employee from membership shall be by resolution of the
governing body of the participating municipality or by administrative order of
the chief judge of the participating court. A certified copy of the resolution
or administrative order shall be filed with the Retirement Board within 10 days
after adoption or issuance.
(3) The chief executive officer of a participating municipality may elect to be
excluded from membership in the retirement system if the individual has less
than the minimum years of credited service required for vesting. The election
shall be in writing, in the form prescribed by the retirement system, within 90
days after the date the individual becomes chief executive officer, or within 90
days after December 2, 1986, if the individual is the chief executive officer on
December 2, 1986. As used in this subsection, "chief executive officer" means
the individual who is appointed by, serves at the pleasure of, and is designated
by the governing body of the participating municipality to be its chief
executive officer. A participating municipality may have only 1 chief executive
officer. A participating municipality may not designate a different chief
executive officer during any period a previously designated individual is
employed by the participating municipality, except during the period, if any,
not to exceed 18 months, a previously designated individual is retained on the
payroll pursuant to a severance of employment arrangement approved by the
governing body. The following conditions shall apply to an individual who elects
to be excluded from membership as provided in this subsection:
(a) The individual shall be paid the individual's accumulated contributions and
all credited service shall be forfeited.
(b) The participating municipality shall pay to the individual the excess, if
any, of the actuarial present value of the individual's credited projected
benefit at the time of exclusion from membership over the individual's
accumulated contributions, if the payment is approved by a 3/5 vote of the
governing body of the participating municipality. A certified copy of the
resolution shall be filed with the retirement system within 10 days after
adoption. The participating municipality may deduct the amount of the excess
from future quarterly employer contribution payments.
(c) The individual may not again become a member of the retirement system on
account of employment by the same participating municipality.
(d) The individual's forfeited credited service and any service rendered the
participating municipality while the individual was excluded from membership
shall never be reinstated or credited to the individual under section 4 or
section 6.
(4) A municipal employee or judicial employee who is an active member of another
retirement system shall be a member only for the portion of the member's
compensation that is not considered compensation under the other retirement
system.
(5) A municipal employee or judicial employee shall cease to be a member upon
termination of employment by a participating municipality or participating
court, or upon ceasing to be employed in a position regularly requiring at least
10 days or a specified number of hours of work in a calendar month, as provided
in subsection (1), or upon being designated a temporary municipal employee or
judicial employee, except as provided in subsection (6). A member who has been
laid off by a participating municipality or participating court and whose layoff
status continues for a period of at least 30 days may make written request to
the retirement system for a return of the member's accumulated contributions.
Payment of the accumulated contributions shall constitute termination of
membership in the retirement system.
(6) A member who is transferred to the employ of the state, another
municipality, or another judicial circuit court, judicial district court, or
judicial probate court by reason of a function of the member's participating
municipality or participating court being transferred to the state, the other
municipality, or the other judicial circuit court, judicial district court, or
judicial probate court shall remain a member of the retirement system,
notwithstanding subsection (5), subject to the following conditions:
(a) Service rendered the state, the other municipality, or the other judicial
circuit court, judicial district court, or judicial probate court subsequent to
the transfer and standing to the member's credit in a retirement system of the
state, the other municipality, or the other judicial circuit court, judicial
district court, or judicial probate court may be combined with the member's
credited service in this retirement system. The combined credited service may be
used only to meet the retirement or survivor benefit credited service
requirements of this retirement system.
(b) The amount of a retirement allowance that may become payable by this
retirement system shall be computed on the basis of the member's credited
service and final average compensation, and the benefit program applicable to
the member, at the time of the member's transfer of employment.
(c) The member may not retire prior to termination of all employment with the
state, the other municipality, or the other judicial circuit court, judicial
district court, or judicial probate court.
(7) A member who is concurrently employed by 2 or more participating
municipalities or participating courts shall remain a member upon termination of
employment with 1 or more of the participating municipalities or participating
courts if the remaining employment with 1 or more participating municipalities
or participating courts satisfies the conditions of this section with regard to
membership. Membership with respect to the participating municipalities or
participating court, with whom the member terminated employment shall terminate.
The member shall have the rights of a terminated member in all respects with
regard to service rendered the participating municipalities or participating
court, with whom employment has terminated.
(8) A member who is in receipt of worker's compensation weekly benefits on
account of an employment-related injury shall continue to be a member and
receive credited service until the earliest of termination of employment,
retirement or death.
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996.
Page 2 of 9
"Our Present is Your Future"
Municipal Employees' Retirement System of Michigan Plan Document
(As revised through December 31, 1999)
Page 3 of 9
ARTICLE II. SERVICE CREDIT
Section 4 Credited Service; Forfeiture; Reinstatement
Section 5 Combining Credited Service
Section 6 Credit for Certain Qualifying Service; Conditions; Crediting Payment
under Subsection (1) (c)
Section 7 Credited Service: Election to Purchase Not More Than 5 Years of
Credited Service
Section 8 Election to come under Reciprocal Retirement Act
Section 9 Credit Service for Period of Active Duty; Conditions
Sec. 4. Credited Service ; Forfeiture; Reinstatement. Top
(1) Prior service and membership service to which a member is entitled,
including periods during which a member is in receipt of worker's compensation
weekly benefits, shall be credited to the member's individual service account.
Service shall be credited in years and twelfths of a year. Not more than 1 year
of credited service shall be credited a member on account of all service
rendered to a participating municipality or participating court in any period of
12 consecutive months. Not more than 1/12 of a year of credited service shall be
credited a member on account of all service rendered to a participating
municipality or participating court in a calendar month. Credited service shall
not be credited for any calendar month during which a member acquires less than
10 days or a specified number of hours of work, as defined by the member's
participating municipality or participating court pursuant to section 3(1).
Credited service shall not be credited to a member for any calendar month during
which the member is covered by Benefit Program DC, except that periods of at
least 12 months in which a participating municipality or participating court has
made employer contributions on behalf of a member under MERS Benefit Program DC
shall be counted towards satisfying the applicable vesting or service
requirement under sections 10(1)(b) and 10(4).
(2) All or a portion of an individuals' credited service shall be forfeited
under the following conditions:
(a) All credited service shall be forfeited if the individual incurs a break in
membership of more than 180 consecutive months and is not a vested former member
pursuant to section 12.
(b) Credited service for which the individual has made member contributions
shall be forfeited if the individual's accumulated contributions are paid to the
individual, the individual's designated beneficiary, or the individual's legal
representative.
(3) Credited service forfeited for a reason other than a break in membership of
more than 180 consecutive months shall be reinstated in the member's service
account if all of the following conditions are satisfied:
(a) The forfeited credited service was acquired while the member was in the
employ of the same participating municipality or participating court.
(b) The member pays to the retirement system all accumulated contributions
previously paid to the member plus compound interested from the date of payment
to the member to the date of repayment to the retirement system. Payment shall
be made within 5 years after the date the member reacquires membership in the
retirement system on account of employment with the same participating
municipality or participating court. However, a participating municipality may
by resolution of its governing body, or a participating court may by
administrative order of its chief judge, establish a written policy to extend
beyond 5 years the period for payment required under this subdivision. The
policy shall be uniformly applicable to all members employed by the
participating municipality or participating court who are covered by the same
benefit program coverage classification. Benefit coverage classifications are
those established by the Retirement Board under section 41 or 41A.
(4) The rates of compound interest applicable to repayment of accumulated
contributions shall be as determined by the Retirement Board.
(5) Forfeited credited service acquired while a member was in the employ of
another participating municipality or participating court shall not be
reinstated under this section but shall be creditable subject to the
requirements of section 6.
(6) Commencing January 1, 1998, each participating municipality or participating
court may, by resolution, adopt the "Partial Service Credit Program."
(a) Part-time employees first hired after the "Partial Service Credit Program"
is adopted shall receive proportionate service credit for less than 40 hours a
week in the proportion which the hours employed in the calendar year bears to
2088 hours. Part-time employees shall be notified in writing at the time of hire
how their service credit will be earned.
(b) With respect to an employee first hired before adoption of the "Partial
Service Credit Program," upon approval of the employer and each eligible part
-time employee in the same benefit classification, the "Partial Service Credit
Program" shall be applied to all prior service for the adopting employer.
History: 1992 PA 63, Eff. May 22, 1992, and Plan Document of 1996.
Note 1: Addition of subsection (6) by Board action of May 20, 1997, effective
January 1, 1998.
Note 2: Text of subparagraph (6)(a) revised by Board action of May 20, 1998,
with immediate effect.
Note 3: Bold text at end of subsection (1) added by Board action of August 23,
2000, with immediate effect as of October 1, 2000. See companion amendment to
sections 10(1), 10(4), and 19A(12).
Sec. 5. Combining Credited Service. Top
(1) A member who has acquired credited service with more than 1 participating
municipality or participating court, other than concurrently, may combine the
separate amounts of credited service for the sole purpose of satisfying the
retirement or survivor benefit service credit requirements of the retirement
system. Credited service concurrently acquired in more than 1 participating
municipality or participating court may not be combined. Credited service of
less than 1 year with a participating municipality or participating court may
not be combined. [See Note 2 at end of this section].
(2) (a) A member who has acquired credited service for concurrent employment
with more than 1 participating municipality or participating court may
consolidate the member's credited service and compensation history under a
single participating municipality or participating court if each of the
following conditions is met:
(i) Each of the affected participating municipalities files with the Retirement
Board a resolution of its governing body and each of the affected participating
courts files with the Retirement Board an administrative order of its chief
judge outlining the terms of the credited service and compensation
consolidation,
including the transfer amounts, if any, between the affected participating
municipalities' and participating courts' accounts in the reserve for employer
contributions.
(ii) Amounts to be transferred shall not be greater than the larger of (a) the
accumulated contributions of the member whose credited service is being
transferred; or (b) the actuarial present value of the retirement allowance
otherwise payable by the transferring participating municipality or
participating court on the regular retirement date should the transfer not
occur.
The actuarial present value of the accrued benefit shall be determined based on
the rate of return on the investment of present and future assets utilized by
the Retirement Board at the time of such valuation (presently 8% as of October
1,
1996), and the pre- and post-retirement life expectancies of participants based
on the 1971 Group Annuity Mortality Table (for males using projected scale D [to
1984] and the male table set back six years for females).
(iii) Periods of concurrent credited service shall not result in more than one
month of credited service for any one calendar month.
(iv) After the consolidation of credited service and compensation, the member
will no longer have credited service in force with the participating
municipalities or participating courts which transferred credited service and
compensation histories to another participating municipality or participating
court.
(b) If a member's periods of concurrent employment are consolidated, the
member's
compensation histories shall be combined, in order to calculate final average
compensation and member contributions.
(c) If a member's periods of concurrent employment are consolidated, the
member's
retirement or survivor benefits and member contributions shall be determined
based on the benefit programs and member contribution programs adopted by the
participating municipality or participating court which agrees to accept
responsibility for the consolidated employment.
(d) Each participating municipality or participating court utilizing this
section shall establish a written policy to implement the provisions of this
section to provide for its uniform application to all employees and former
employees within the membership of the retirement system. This section shall not
be applicable to any former member (or beneficiary of such member) in receipt of
a retirement allowance based on the same credited service rendered for the
participating municipality or participating court for which transfer is
requested.
History: 1993 PA 50, Eff. June 1, 1993, and Plan Document of 1996.
Note 1: Bracketed text in subparagraph (2)(a)(ii) added to reflect Board action
in 1994.
Note 2: Language formerly found at end of subsection (1) concerning prior
service and based on 1993 PA 50, section 58, inserted verbatim as separate
subparagraph in 2C(3) per Board action of May 20, 1998, with immediate effect.
Sec. 6. Credit for Certain Qualifying Service; Conditions; Crediting Payment
under Subsection (1) (c). Top
(1) The Retirement Board shall credit a member other than a member covered by
Benefit Program DC, for qualifying service in the employ of the United States
government, a state, or a political subdivision of a state, if all of the
following conditions are satisfied.
(a) The governing body of the participating municipality that employs the member
adopts a resolution, or the chief judge of the participating court that employs
the member issues an administrative order, requesting the Retirement Board to
credit the member with a specific period of qualifying service and files a
certified copy of the resolution or administrative order with the retirement
system within 10 days after the adoption or issuance. The resolution of the
governing body or the administrative order of the chief judge shall be made or
issued pursuant to a previously adopted written policy which provides for
uniform applicability of the provisions of this section to all members employed
by the participating municipality or participating court who are covered by the
same benefit program coverage classification. Benefit program coverage
classification shall be those established by the Retirement Board pursuant to
the provision of section 41 or 41A.
(b) The qualifying governmental service was not rendered prior to any break of
180 or more months in the member's employment by the United States government, a
state, or a political subdivision of a state.
(c) The member pays to the retirement system the amount the participating
municipality or participating court may require of the member in consideration
for the crediting of qualifying governmental service; any payment shall be
credited to the member's individual account in the reserve for employee
contributions. The required payment, if any, shall not exceed the difference
between the actuarial present value of potential benefits after crediting the
specified period of qualifying service and the actuarial present value of
potential benefits prior to crediting the specified period of qualifying
service.
The actuarial present value of potential benefits shall be calculated using the
earliest retirement date assumption and experience assumptions used for the
annual actuarial valuation.
(2) For purposes of this section, service is qualifying if it is not and will
not be recognized for the purpose of obtaining or increasing a benefit under
another retirement system. A member may qualify service by making an irrevocable
forfeiture of all rights in and to the actual or potential benefit from the
other retirement system.
(3) Service purchased under this section shall not be:
(a) Credited until the member attains the vesting requirement in effect for the
participating municipality or court; or
(b) Used to satisfy the minimum years of credited service required to be a
vested former member in the event of termination of membership.
(4) For a member employed by a participating municipality or court as of July 1,
1997, who has service rendered before that date that was covered service under
former sections 6 and 9 of the Municipal Employees' Retirement Act of 1984,
former MCL 38.1506 and 38.1509 as in effect on August 15, 1996, those provisions
shall continue to apply to such members for covered service rendered before July
1, 1997.
History: 1996 PA 220, Eff. August 15, 1996, and Plan Document of 1996.
Note 1: Bold text in subparagraph (1)(c) inserted from former (4); added text in
new (3), with (b) inserted from former (5); text of former (4) deleted; language
in revised (4) modification of former (5) reflecting Board Plan interpretation
of April 23, 1997; all changes by Board action of May 20, 1998, with immediate
effect.
Note 2: The former Sections 6 and 9 referred to in subsection (4) are found in
the Appendix Tab at the end of this Plan booklet. Former Section 6 is found at
B-1,
and former Section 9 at B-2.
Sec. 7. Credited Service: Election to Purchase Not More Than 5 Years of Credited
Service. Top
(1) The Retirement Board shall credit a member with not more than 5 years of
credited service, if each of the following conditions is satisfied: (a) The
governing body of the participating municipality that employs the member adopts
a resolution, or the chief judge of the participating court that employs the
member issues an administrative order, requesting the Retirement Board to credit
the member with a specific amount of credited service and files a certified copy
of the resolution or administrative order with the retirement system within 10
days after adoption or issuance. The resolution of the governing body or the
administrative order of the chief judge shall be made or issued pursuant to a
previously adopted written policy which provides for uniform applicability of
the provisions of this section to all members employed by the participating
municipality or participating court who are covered by the same benefit program
coverage classification. Benefit program coverage classifications shall be those
established by the Retirement Board pursuant to the provisions of section 41 and
41A.
(b) The member pays to the retirement system the amount the participating
municipality or participating court may require of the member in consideration
for the crediting of service; any payment shall be credited to the member's
individual account in the reserve for employee contributions. The required
payment, if any, shall not exceed the difference between the actuarial present
value of potential benefits after crediting the specified amount of credited
service and the actuarial present value of potential benefits prior to crediting
the specified amount of credited service. The actuarial present value of
potential benefits shall be calculated using the earliest retirement date
assumption and the experience assumptions used for the annual actuarial
valuation.
(2) Service purchased under this section shall not be:
(a) Credited until the member attains the vesting requirement in effect for the
participating municipality or court; or
(b) Used to satisfy the minimum years of credited service required to be a
vested former member in the event of termination of membership.
(3) Credited service acquired under this section shall not be used to satisfy
the minimum years of credited service required to retire under section 10 before
the attainment of the age which is the sum of (a) and (b), described as follows:
(a) Age 18.
(b) The applicable minimum years of credited service required to retire under
section 10.
(4) The total credited service acquired by a member under this section, from all
participating municipalities and participating courts, shall not exceed 5 years.
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996.
Note: Bold text in subparagraph (1)(b) inserted from former (2); added text in
new (2), with (b) inserted from former (3); and former (4) and (5) renumbered as
(3) and (4) respectively; by Board action of May 20, 1998, with immediate
effect.
Sec. 8. Election to come under Reciprocal Retirement Act. Top
A participating municipality or participating court which has elected to come
under the provisions of the Reciprocal Retirement Act, Act No. 88 of the Public
Acts of 1961, being sections 38.1101 to 38.1106 of the Michigan Compiled Laws,
by resolution of its governing body, may make such provisions applicable to
former members who left the employ of the participating municipality or
participating court before the date the participating municipality or
participating court elected to come under such provisions. Service shall not be
recognized unless the member pays the retirement system withdrawn accumulated
contributions applicable to such service, plus regular interest as provided by
the Retirement Board from the date of withdrawal to the date of repayment. The
amount shall be repaid within 2 years after the participating municipality or
participating court has elected to come under the provisions of Act No. 88 of
the Public Acts of 1961.
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996.
Sec. 9. Credit Service for Period of Active Duty; Conditions. Top
A member who leaves or left the employ of a participating municipality or
participating court to enter any armed service of the United States shall be
entitled to credited service for periods of active duty subject to the following
conditions:
(1) The member is reemployed by the same participating municipality or
participating court within 6 months after the date of termination of the minimum
period of active duty required of the member, and the member is not covered by
Benefit Program DC by virtue of employment with the same participating
municipality or participating court.
(2) The member pays the retirement system the total amount of accumulated
contributions withdrawn at the time of, or subsequent to, leaving employment by
the participating municipality or participating court to enter armed service,
plus regular interest as provided by the Retirement Board, from the date of
withdrawal to the date of repayment.
(3) Not more than 6 years of credited service shall be granted a member under
this section.
(4) Credited service shall not be granted for periods of armed service that are
or could be used for obtaining or increasing a benefit from another retirement
system.
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996.
Page 3 of 9
"Our Present is Your Future"
Municipal Employees' Retirement System of Michigan Plan Document
(As revised through December 31, 1999)
Page 4 of 9
ARTICLE III. RETIREMENT REQUIREMENTS AND BENEFIT PROGRAM
Section 10 Retirement; Requirements; Allowance; Benefit Programs
Section 11 Adoption for Temporary Period of Benefit Programs or Combination of
Benefit Programs; Contents of Resolution or Administrative Order; Retirement
under Section 10 During Temporary Period; Limitation
Section 12 Vested Former Member; Requirements
Section 13 Benefit Program A: Retirement Allowance
Section 14 Benefit Program B: Retirement Allowance
Section 15 Benefit Program B-1: Retirement Allowance
Section 16 Benefit Program B-2: Retirement Allowance
Section 16A Benefit Program B-3: Retirement Allowance
Section 16B Amount of Retirement Allowance under Benefit Program B-4
Section 17 Benefit Program C-New and C-Old: Retirement Allowance
Section 18 Benefit Program C-1 New and C-1 Old: Retirement Allowance
Section 19 Benefit Program C-2; Adoption; Retirement Allowance
Section 19A Benefit Program DC; Adoption; Contributions; Distribution
Section 20 Benefit Program E; Adoption or Readoption; Effective Date; Adjustment
Date; Adjustment Factor; Prohibition
Section 21 Benefit Program E-1; Adoption or Readoption; Effective Date;
Applicability; Adjustment Dates; Maximum Cumulative Adjustment Limitation; Base
Amount of Retirement Allowance; Adjustment Factor
Section 22 Benefit Program E-2; Adoption; Effective Date; Applicability;
Adjustment Dates; Maximum Cumulative Adjustment Limitation; Base Amount of
Retirement Allowance; Adjustment Factor
Section 23 Forms of Payment; Election; Naming of Survivor Beneficiary; Failure
to Make Timely Election; Amount of Retirement Allowance; Election if Member
Married at Retirement Allowance Effective Date; Signature of Spouse; Effect on
Election if Retirant Divorced From Spouse Named as Survivor Beneficiary
Section 23A Adoption of Benefit Program RS50%; Specifying Effective Date of
Change in Coverage; Duration and Amount of Payment to Surviving Spouse;
"Surviving
Spouse" Defined
Section 24 Retirement of Incapacitated Member; Conditions; Medical Examinations;
Effective Date of Disability Retirement; Amount of Disability Retirement
Allowance; Exceptions
Section 25 Disability Retirant Under Age 60; Periodic Medical Examination;
Suspension; Revocation, or Discontinuance of Disability Pension; Conditions to
Restoration of Terminated Disability Retirant's Actual Credited Service; Service
Not Credited for Period of Disability; Terminated Disability Retirant as Vested
Former Member
Section 26 Conditions to Payment of Retirement Allowance for Surviving Spouse;
Commencement and Amount of Payment; Conditions to Payment of Retirement
Allowance to Surviving Child, Restriction; Termination and Amount of Surviving
Child's Retirement Allowance; Presumptions
Section 27 Death Resulting From Injury or Disease Arising Out of and in Course
of Duty; Additional Provision Applicable To Section 26
Section 27A Remarriage of Surviving Spouse
Section 28 Contingent Survivor Beneficiary
Section 29 Provisions Applicable During Period Between Effective Date of
Disability Retirement Allowance and Date Disability Attains Age 60 or Where
Adopted by Resolution, the Age for Age and Service Retirement
Section 30 Commencement, Termination, and Change in Retirement Allowance
Section 31 Employment by Participating Municipality or Court; Special Conditions
Sec. 10 Retirement; Requirements; Allowance; Benefit Programs. Top (1) A member
or a vested former member other than a member or vested former member covered by
Benefit Program DC may retire upon satisfaction of all of the following
requirements:
(a) A written application for retirement, on a form established by the
retirement system, has been filed with the retirement system. The Retirement
Board may establish required time periods, preceding or surrounding the date of
retirement, for the filing of an application for retirement.
(b) One of the following applies:
(i) The member or vested former member has attained age 50 years or older and
has 25 or more years of credited service.
(ii) The member or vested former member has attained age 55 years or older and
has 15 or more years of credited service.
(iii) The member or vested former member has attained age 60 years or older and
has 10 or more years of credited service.
(iv) The member or vested former member has attained age 60 years or older and
has 8 or more years of credited service if the member's participating
municipality or participating court adopts the termination of membership vesting
Benefit Program V-8 for the member.
(v) The member or vested former member has attained age 60 years or older and
has 6 or more years of credited service if the member's participating
municipality or participating court adopts the termination of membership vesting
Benefit Program V-6 for the member.
(vi) The participating municipality or participating court has adopted Benefit
Program F(N) and the member or vested former member has the specified period of
credited service required for retirement.
(c) The member terminates membership before the date of retirement.
Periods of at least 12 months in which a participating municipality or
participating court has made employer contributions on behalf of a member under
MERS Benefit Program DC shall be counted towards satisfying the applicable
vesting or service requirements in this subsection (1), but not in the
calculation of the retirement allowance.
(2) Upon retirement the member or vested former member shall be paid a
retirement allowance computed under the benefit programs that are applicable to
the member's or vested former member's credited service and the provisions of
subsection (3). The benefit programs applicable to a vested former member shall
be determined as of the date of termination of membership and shall not be
affected by any subsequent change in benefit programs that is applicable to the
classifications held by the vested former member.
(3) If the date of retirement precedes the date the member or vested former
member attains the full retirement allowance age as determined under subsection
(4) or (5), the amount of retirement allowance shall be reduced. The amount of
reduction shall be 1/2 of 1% of the retirement allowance multiplied by the
number of months, rounded to the next higher number of months and not less than
zero, by which the date of retirement precedes the date the member or vested
former member attains the full retirement allowance age. The reduction called
for in this subsection shall not be applied to benefit component (I) under
Benefit Program B, as provided in section 14.
(4) A participating municipality or participating court may adopt Benefit
Program F(N), Benefit Program F50, or Benefit Program F55, or a combination
thereof. Under Benefit Program F(N), the full retirement allowance age shall be
any age with the required period of credited service. The required period of
credited service shall be either 20, 21, 22, 23, 24, 25, 26, 27, 28, 29 or 30
years, as specified pursuant to subsection (5). Under Benefit Program F50, the
full retirement allowance age shall be age 50 years with a required period of
credited service of either 25 or 30 years. Under Benefit Program F55, the full
retirement allowance age shall be age 55 years with a required period of
credited service of 15 years, 20 years, 25 years, or 30 years. Periods of at
least 12 months in which a participating municipality or participating court has
made employer contributions on behalf of a member under MERS Benefit Program DC
shall be counted towards satisfying the applicable vesting oar service
requirements in this subsection (4), but not in the calculation of the
retirement allowance.
(5) Full retirement allowance age shall be age 60 years, unless the
participating municipality or participating court has adopted Benefit Program
F(N),
Benefit Program F50 or Benefit Program F55, or a combination thereof, and the
member or vested former member has the required period of credited service. The
governing body of the participating municipality or chief judge of the
participating court shall specify, at the time Benefit Program F(N), Benefit
Program F50 or Benefit Program F55, or a combination thereof, are adopted, the
required period of credited service which shall be applicable to the benefit
program.
History: 1989 PA 51, Eff. June 12, 1989, and Plan Document of 1996.
Note: Bold text paragraph following subsection (1)(c), and bold text in last
sentence of subsection (4), added by Board action of August 23, 2000, with
immediate effect as of October 1, 2000. See companion amendment to sections 4(1)
and section 19A(12).
Sec. 11. Adoption for Temporary Period of Benefit Programs or Combination of
Benefit Programs; Contents of Resolution or Administrative Order; Retirement
under Section 10 During Temporary Period; Limitation. Top (1) Subject to
sections 43 and 43A, a participating municipality may by resolution of its
governing body, or a participating court may by administrative order of its
chief judge adopt for a temporary period any of the following benefit programs
or any legitimate combination of the following benefit programs:
(a) Benefit Program E-2 under section 22.
(b) Benefit Program FAC-3 under section 2A(11)(b).
(c) Benefit Program F50 under section 10(4).
(d) Benefit Program F55 under section 10(4).
(e) Benefit Program B-1 under section 15.
(f) Benefit Program B-2 under section 16.
(g) Benefit Program B-3 under section 16A.
(h) Benefit Program B-4 under section 16B.
(i) Benefit Program C-New and C-Old under section 17.
(j) Benefit Program C-1 New and C-1 Old under section 18.
(k) Benefit Program C-2 under section 19.
(l) Benefit Program RS50% under section 23A.
(m) Benefit Program V-8 under section 10.
(n) Benefit Program V-6 under section 10.
(o) Benefit Program F(N) under section 10.
(2) The resolution or administrative order shall contain all of the following
that are applicable:
(a) The benefit program or combination of benefit programs adopted under
sub-section
(1).
(b) The beginning and ending dates of the temporary period selected under
sub-section
(1). The temporary period selected shall be for not less than 60 days and not
more than 180 days.
(c) The classification of members covered by the benefit program or combination
of benefit programs for the temporary period under subsection (1).
(d) If Benefit Program F50, F55 or F(N) is adopted for a temporary period under
sub-section (1), the required period of credited service applicable to the
benefit program.
(3) A member who is in the classification of members covered under the benefit
program or combination of benefit programs for the temporary period under this
section and who retires under section 10 during the temporary period shall
receive a retirement allowance computed pursuant to the benefit program or
combination of benefit programs adopted for the temporary period.
(4) A participating municipality or a participating court shall not adopt a
temporary period under this section for the same classification of members on
more than two (2) occasions in any period of five (5) consecutive calendar
years.
A participating municipality or a participating court shall not adopt a
temporary period under this section for members covered by Benefit Program DC.
History: 1995 PA 191, Eff. Nov. 7, 1995, and Plan Document of 1996.
Note 1: Subparagraphs (1)(m) and (n) added by Board action of August 20, 1998,
with immediate effect.
Note 2: Bold text in subparagraph (1)(o) and 2(d) added by Board action of
November 19, 1998, with immediate effect.
Sec. 12. Vested Former Member; Requirements. Top (1) A member who ceases to be a
member, for a reason other than retirement or death, is a vested former member
if one (1) of the following requirements is met.
(a) The member has 10 or more years of credited service at the time the
membership terminates.
(b) The member has 8 or more years of credited service and is covered under the
termination of membership vesting Benefit Program V-8 at the time the membership
terminates.
(c) The member has 6 or more years of credited service and is covered under the
termination of membership vesting Benefit Program V-6 at the time the membership
terminates.
(d) The member is covered under Benefit Program DC at the time the membership
terminates.
(2) A vested former member may retire upon satisfaction of the requirements of
section 10. The benefit programs applicable to a vested former member shall be
determined as of the date of termination of membership and shall not be affected
by a subsequent change in benefit programs applicable to the classifications
held by the vested former member.
History: 1989 PA 51, Eff. June 12, 1989, and Plan Document of 1996.
Sec. 13. Benefit Program A: Retirement Allowance. Top The amount of retirement
allowance under Benefit Program A shall be 1% of the member's or former vested
member's final average compensation multiplied by the member's credited service.
This benefit program shall cease to be available for selection after January 2,
1986.
History: 1984 PA 427, Eff. Jan 2, 1985, and Plan Document of 1996.
Sec. 14. Benefit Program B: Retirement Allowance. Top (1) The amount of a
retirement allowance under Benefit Program B shall be the sum of benefit
components (I), (ii), (iii), and (v), described as follows:
(a) Benefit component (I) is the amount of retirement allowance which has the
same actuarial present value as the member's accumulated contributions as of the
date of retirement.
(b) Benefit component (ii) is $120.00.
(c) Benefit component (iii) is 0.84% of the member's final average compensation
multiplied by the member's membership service.
(d) Benefit component (iv) is 1.13% of the member's final average compensation
multiplied by the member's prior service.
(2) Benefit component (ii) shall be the obligation of the last participating
municipality to cover the member under Benefit Program B.
(3) Benefit Program B shall cease to be available for selection after January 2,
1986.
(4) For purposes of this section, "member" includes vested former member.
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996.
Sec. 15. Benefit Program B-1: Retirement Allowance. Top (1) The amount of a
retirement allowance under Benefit Program B-1 shall be 1.7% of the member's
final average compensation multiplied by the member's credited service.
(2) The amount of retirement allowance shall not be less than the amount of
retirement allowance computed according to Benefit Program B if the
participating municipality previously covered the member under Benefit Program
B.
(3) For purposes of this section, "member" includes vested former member.
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996.
Sec. 16. Benefit Program B-2: Retirement Allowance. Top (1) The amount of a
retirement allowance under Benefit Program B-2 shall be 2% of the member's final
average compensation multiplied by the member's credited service.
(2) For purposes of this section, "member" includes vested former member.
History: 1986 PA 291, Eff. Dec. 22, 1986, and Plan Document of 1996.
Sec. 16A. Benefit Program B-3: Retirement Allowance. Top (1) The amount of a
retirement allowance under Benefit Program B-3 shall be 2.25% of the member's
final average compensation multiplied by the member's credited service, subject
to the maximum stated in subsection (2).
(2) The amount of retirement allowance under Benefit Program B-3 shall not
exceed 80% of the member's final average compensation, or the amount of
retirement allowance the member would have been entitled to had the member
continued to be covered by the benefit program in effect immediately before
coverage by Benefit Program B-3, whichever is greater.
(3) For purposes of this section, "member" includes vested former member.
History: 1986 PA 291, Eff. Dec. 22, 1986, and Plan Document of 1996.
Sec. 16B. Amount of Retirement Allowance under Benefit Program B-4. Top (1) The
amount of a retirement allowance under Benefit Program B-4 shall be 2.5% of the
member's final average compensation multiplied by the member's credited service,
subject to the maximum stated in subsection (2).
(2) The amount of retirement allowance under Benefit Program B-4 shall not
exceed 80% of the member's final average compensation, or the amount of
retirement allowance the member would have been entitled to had the member
continued to be covered by the benefit program in effect immediately before
coverage by Benefit Program B-4, whichever is greater.
(3) For purposes of this section, "member" includes vested former member.
History: 1990 PA 99, Eff. June 7, 1990, and Plan Document of 1996.
Sec. 17. Benefit Program C-New and C-Old: Retirement Allowance. Top (1) The
amount of retirement allowance under Benefit Program C-New shall be 1.3% of the
member's final average compensation multiplied by the member's credited service.
(2) The amount of retirement allowance under Benefit Program C-Old shall be the
sum of benefit components (i) and (ii), described as follows:
(i) Is 1% of the first $4,200.00 of the member's final average compensation
multi-plied by the member's credited service.
(ii) Is 1.5% of the portion, if any, of the member's final average compensation
in excess of $4,200.00 multiplied by the member's credited service.
(3) Benefit Program C-Old shall cease to be available for selection after
January 2, 1986.
(4) For purposes of this section, "member" includes vested former member.
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996.
Sec. 18 Benefit Program C-1 New and C-1 Old: Retirement Allowance. Top (1) The
amount of retirement allowance under Benefit Program C-1 New shall be 1.5% of
the member's final average compensation multiplied by the member's credited
service.
(2) The amount of retirement allowance under Benefit Program C-1 Old shall be
the sum of benefit components (i) and (ii), described as follows:
(i) Is 1.2% of the first $4,200.00 of the member's final average compensation
multiplied by the member's credited service.
(ii) Is 1.7% of the portion, if any, of the member's final average compensation
in excess of $4,200.00 multiplied by the member's credited service.
(3) Benefit Program C-1 Old shall cease to be available for selection after
January 2, 1986.
(4) For purposes of this section, "member" includes vested former member.
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996.
Sec. 19. Benefit Program C-2; Adoption; Retirement Allowance. Top (1) Benefit
Program C-2 shall be adopted only as a supplement to Benefit Programs A, C, C-1
and B-1. The amount of retirement allowance under Benefit Program C-2 shall be
the amount which, when added to the amount of the Benefit Program A, C, C-1, or
B-1 retirement allowance, will produce a total retirement allowance of 2% of the
member's final average compensation multiplied by the member's credited service.
(2) A Benefit Program C-2 retirement allowance shall be paid only for periods
during which 1 of the following conditions exists:
(a) The retirement allowance is being paid pursuant to section 10 and the member
has not attained the age at which an unreduced social security old age benefit
is available.
(b) The retirement allowance is being paid pursuant to section 24 and the member
is not being paid a monthly social security disability benefit.
(c) The retirement allowance is being paid pursuant to section 26, 27 or 28 on
account of the member's death and the recipient beneficiary is not being paid a
monthly social security survivor benefit. The recipient beneficiary's monthly
social security survivor benefit shall be presumed payable not later than the
beneficiary's attainment of the age at which an unreduced social security
survivor benefit would be available in the absence of the beneficiary's own
earnings related social security old age benefit.
(3) For purposes of this section, "member" includes vested former member.
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996.
Sec. 19A. Benefit Program DC; Adoption; Contributions; Distribution. Top (1)
This section applies to a member covered by Benefit Program DC. Unless
specifically restricted by this Plan or the Retirement Board, a participating
municipality or participating court is authorized to offer any rights, benefits,
or features authorized for defined contribution plans under the Internal Revenue
Code of 1986, as amended.
(2) In the resolution adopting Benefit Program DC, the member's participating
municipality or participating court shall provide for the contribution of a
percentage of the member's compensation to the retirement system. The
participating municipality or participating court shall choose the percentage
from the available contribution programs. The contribution programs available
for selection are any percentage of compensation from 1% to the maximum
percentage allowed by federal law, in increments of 0.1%. The participating
municipality or participating court shall choose the same contribution rate for
all members in the same benefit program coverage classification. The Retirement
Board shall determine the timing and mechanism for the remittance of employer
contributions. The Retirement Board may establish a program for making transfers
from the reserve for employer contributions to the reserve for defined
contribution plan for the purpose of meeting all or a part of the participating
municipality's or participating court's contribution under this subsection.
(3) A member may voluntarily contribute additional amounts to his or her
individual account in the reserve for defined contribution plan to the extent
allowed by federal law and subject to procedures established by the Retirement
Board. A member may roll over qualified distributions from other qualified
retirement plans into this retirement system, to the extent allowed by federal
law. A member is immediately 100% vested in the member's accumulated balance.
(4) The Retirement Board may contract with private investment managers to invest
the assets in the reserve for defined contribution plan. A member, vested former
member, and beneficiary may direct the investment of the individual's
accumulated balance to 1 or more of the available categories of investment
provided by the investment managers. At least 3 categories of investment shall
be made available to members, vested former members, and beneficiaries as
follows;
(a) Short-term securities.
(b) Fixed income securities.
(c) Equity securities.
(5) The Retirement Board shall determine the investment category for the
accumulated balance of a member, vested former member, or beneficiary, if that
individual does not choose to direct his or her own investments under subsection
(4).
(6) (a) Upon the death of a member or vested former member, the accumulated
balance
of the deceased member or deceased vested former member is considered to belong
to the beneficiary or beneficiaries, if any, nominated by the deceased member or
de
ceased vested former member.
(b) To nominate a beneficiary or beneficiaries, a member shall file a written
nomination with the Retirement Board, based on procedures established by the
Retirement Board. Written consent by the member's spouse to the beneficiary
named is required unless the spouse is beneficiary to 100% of the balance; this
requirement may be waived by the Retirement Board if the signature of the
member's
spouse cannot be obtained because of extenuating circumstances.
(7) Upon termination of membership, a vested former member or a beneficiary, as
applicable, shall elect 1 or a combination of several of the following methods
of distribution of the vested former member's or beneficiary's accumulated
balance, to the extent allowed by federal law and subject to subsection 6(b) and
procedures established by the Retirement Board:
(a) Lump sum distribution to the vested former member or beneficiary.
(b) Lump sum direct rollover to another qualified retirement or pension plan, to
the extent allowed by federal law.
(c) Annuity for the life of the vested former member or beneficiary, or optional
forms of annuity as determined by the Retirement Board.
(d) No distribution, in which case the accumulated balance shall remain in the
retirement system, to the extent allowed by federal law.
(8) In the resolution adopting the Benefit Program DC, the participating
municipality or participating court may provide an opportunity for current
members of the retirement system to elect coverage under Benefit Program DC if
each of the following conditions are met:
(a) The member's participating municipality or participating court elects under
Section 43 or 43A to change the benefit program from a benefit program other
than Benefit Program DC to Benefit Program DC, for members in a benefit program
coverage classification who are first hired after the effective date of the
change.
(b) On the effective date of the change to Benefit Program DC, the member is a
member of the retirement system and is in the benefit program coverage
classification described in subdivision (a).
(c) On the date of the resolution adopting Benefit Program DC, the total funded
percent of aggregate accrued liabilities and valuation assets of all reserves
specified in Table 11 (or successor table) of the most recent annual actuarial
valuation report for the municipality or court is at least sixty percent (60%).
(9) The retirement system shall offer 1 opportunity for a member who satisfies
the con-ditions of subsection (8) to elect coverage under Benefit Program DC,
and once made, the election is irrevocable. The member shall make the election
under this subsection in writing, based on procedures established by the
Retirement Board. The Retirement Board shall begin accepting written elections
from members on and after the effective date of the change of benefit program
pursuant to subsection (8), and shall not accept written elections from members:
(a) Earlier than the end of the third month following the month in which the
resolution is adopted and received by MERS; and
(b) Later than the first day of the first calendar month that is at least 6
months after MERS receipt of the resolution.
If the member is married at the time of election, the election is not effective
unless the election is signed by the member's spouse, except that this
requirement may be waived by the Retirement Board if the signature of the
member's
spouse cannot be obtained because of extenuating circumstances.
(10) A member who makes a written election under subsection (9) shall elect to
do all of the following:
(a) Cease to be covered by the previous benefit program effective 12:01 a.m. on
the first day of the first calendar month that is at least 6 months after the
effective date of the change of benefit program.
(b) Become covered by Benefit Program DC effective 12:01 a.m. on the first day
of the first calendar month that is at least 6 months after the effective date
of the change of benefit program.
(c) Except as provided in subsection (11), waive all of his or her rights to a
retirement allowance or any other benefit provided under the previous benefit
program.
(11) For each member who, under subsection (9), elects coverage under Benefit
Program DC, the Retirement Board shall transfer the following amounts from the
reserve for employee contributions and the reserve for employer contributions to
the reserve for defined contribution plan:
(a) The member's accumulated contributions, if any, as of 12:01 a.m. on the day
the member becomes covered by Benefit Program DC shall be transferred from the
reserve for employee contributions to the reserve for defined contribution plan.
(b) Pursuant to procedures established by the Retirement Board, the excess, if
any, of the actuarial present value of the accrued benefit associated with the
member's coverage under the previous benefit program, over the amount specified
in subdivision (a), based upon the funded level percentage selected by the
governing body in the MERS Uniform DC Program Resolution (which shall not exceed
100% funded level percentage in any case), shall be transferred from the reserve
for employer contributions to the reserve for defined contribution plan. For
purposes of this sub-paragraph:
(1) The actuarial present value shall be computed as of 12:01 a.m. on the day
the member becomes covered by Benefit Program DC and shall be based on the
actuarial assumptions adopted by the Retirement Board.
(2) In determining final average compensation there shall not be included any
accrued annual leave.
(3) The earliest retirement date (for an unreduced benefit) assumption under the
benefit program in effect on the effective date of the change of the benefit
program shall be utilized.
(4) For purposes of the actuarial present value calculation, any future benefit
otherwise payable under Benefit Program E or E-1 shall be disregarded.
(12) Where a member has previously acquired in the employ of any participating
municipality or participating court:
(a) not less than 1 year of defined benefit service in force with a
participating municipality or participating court;
(b) eligible credited service where the participating municipality or
participating court has adopted the Reciprocal Retirement Act, 1961 PA 88;
(c) at least 12 months in which employer contributions by a participating
municipality or participating court have been made on behalf of the member under
Benefit Program DC, such service shall on the member's written request to the
employer and MERS' verification of such service be applied toward satisfying the
vesting schedule for employer contributions. This requirement shall apply to all
adoptions of Benefit Program DC on and after October 1, 2000; where previously
adopted, the participating municipality or participating court may adopted this
subsection (12) with full effectiveness as of the original defined contribution
adoption date for the employer division involved.
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996.
Note 1: Subparagraph (8)(c) added by Board action of November 12, 1997, with
immediate effect.
Note 2: Bold text in subparagraph (11)(b) added by Board action of November 12,
1997, with immediate effect.
Note 3: Deletion of prior reference to E-2 in subparagraph (11)(b)(4) by Board
action of November 12, 1997, with immediate effect.
Note 4: Addition of subsection (12) by Board action of August 23, 2000, with
immediate effect. See companion amendments to sections 4(1), 10(1), and 10(4).
Sec. 20. Benefit Program E; Adoption or Readoption; Effective Date; Adjustment
Date; Adjustment Factor; Prohibition. Top (1) A participating municipality may
by resolution of its governing body or a participating court may by
administrative order of its chief judge adopt or readopt Benefit Program E. The
resolution or administrative order shall specify:
(a) the effective date(s) of retirement for the eligible retirants and
beneficiaries; and
(b) either (i) a percentage adjustment factor; or (ii) a fixed dollar amount.
The adjustment factor or fixed dollar amount shall specify its application to
all retirees, or each retirement allowance in effect for the date(s)specified.
(2) The adjustment date under Benefit Program E shall be the first January 1
coincident with or subsequent to the effective date of the change in coverage
and which is also at least 30 days after the adoption or readoption of Benefit
Program E.
(3) The amount of the retirement allowance of a retirant or beneficiary whose
participating municipality or participating court has adopted or readopted
Benefit Program E shall be adjusted on the adjustment date. The amount of
adjustment shall be added to the amount of retirement allowance payable
immediately prior to the adjustment date.
(4) Benefit Program E shall not be applied to a retirement allowance that is
subject to adjustment under the provision of Benefit Program E-1 or Benefit
Program E-2.
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996.
Note 1: Relocation of text from former subsection (4) (added by Board action of
May 20, 1997) to subparagraph 1(b) along with following sentence; per Board
action of October 22, 1998, with immediate effect.
Note 2: Bold text in subsection (1) added, and (b) and remaining text inserted
from former (4); (3) revised; former (4)-(6) deleted; and former (7) renumbered
as (4); by Board action of October 22, 1998, with immediate effect.
Sec. 21. Benefit Program E-1; Adoption or Readoption; Effective Date;
Applicability; Adjustment Dates; Maximum Cumulative Adjustment Limitation; Base
Amount of Retirement Allowance; Adjustment Factor. Top (1) A participating
municipality may by resolution of its governing body or a participating court
may by administrative order of its chief judge adopt or readopt Benefit Program
E-1. The resolution or administrative order shall specify the effective date of
the change in coverage. Benefit Program E-1 shall apply to each retirement
allowance that has an effective date prior to the effective date of the change
in coverage and is not subject to adjustment under Benefit Program E-2.
(2) The first adjustment date under Benefit Program E-1 shall be the first
January 1 coincident with or subsequent to the effective date of change in
coverage and which is also at least 30 days after the adoption of Benefit
Program E-1. Subsequent adjustment dates shall occur on each January 1 after the
first adjustment date.
(3) The amount of the retirement allowance of a retirant whose participating
municipality or participating court has adopted or readopted Benefit Program E-1
shall be adjusted on each adjustment date except the adjustment date, if any,
that is less than 6 months after the effective date of the retirement allowance.
The amount of adjustment, subject to application of the maximum cumulative
adjustment limitation, shall be equal to the adjustment factor multiplied by the
amount of base retirement allowance.
(4) Effective January 1, 1987, the maximum cumulative adjustment limitation is
100% of the percentage increase, if any, in the average consumer price index
monthly values from the base index period to the current index period. The base
index period is the 12-month period ending on the September 30 that is 15 months
before the first adjustment date. The current index period is the 12-month
period ending on the September 30 that is immediately before the current
adjustment date. The limitation shall be applied to the base amount of
retirement allowance. For purposes of this subsection, "consumer price index"
means the consumer price index for all urban consumers, as published by the
United States department of labor. If this index is discontinued or restructured
after 1983 in a manner materially changing its character, the Retirement Board
shall select the alternative index that most closely preserves the intent
implied in the selection of the specified index. The Retirement Board shall
select the index most closely resembling the specified index for application to
periods for which the specified index was not published.
(5) The base amount of retirement allowance is the amount that would be payable
if the retirement allowance had never been adjusted under the provisions of
Benefit Program E-1.
(6) The adjustment factor shall be 2.5%.
(7) Effective for annual adjustment dates commencing on and after January 1,
1999, all adoptions or readoptions of Benefit Program E-1 under subsection (1)
shall provide for an annual, automatic non-compounded adjustment amount of 2.5%
of the base amount of retirement allowance, without application of the last
sentence of subsection (3) and subsection (4) in its entirety.
History: 1989 PA 51, Eff. June 12, 1989, and Plan Document of 1996.
Note: Subsection (7) added by Board action of November 19, 1998, with immediate
effect as of November 1, 1998.
Sec. 22. Benefit Program E-2; Adoption; Effective Date; Applicability;
Adjustment Dates; Maximum Cumulative Adjustment Limitation; Base Amount of
Retirement Allowance; Adjustment Factor. Top (1) A participating municipality
may by resolution of its governing body or a participating court may by
administrative order of its chief judge adopt Benefit Program E-2. The
resolution shall specify the effective date of the change in coverage. Benefit
Program E-2 shall apply to each retirement allowance that has an effective date
on or after the effective date of the change in coverage.
(2) The first adjustment date under Benefit Program E-2 shall be the first
January 1 coincident with or subsequent to the effective date of the change in
coverage and which is also at least 30 days after the adoption of Benefit
Program E-2. Subsequent adjustment dates shall occur on each January 1 after the
first adjustment date.
(3) The amount of a retirement allowance shall be adjusted on each adjustment
date except the adjustment date, if any, that is less than 6 months after the
effective date of the retirement allowance. The amount of adjustment, subject to
application of the maximum cumulative adjustment limitation, shall be equal to
the adjustment factor multiplied by the amount of base retirement allowance.
(4) Effective January 1, 1987, the maximum cumulative adjustment limitation is
100% of the percentage increase, if any, in the average consumer price index
monthly values from the base index period to the current index period. The base
index period is the 12-month period ending on the September 30 that is 15 months
before the first adjustment date. The current index period is the 12-month
period ending on the September 30 that is immediately before the current
adjustment date. The limitation shall be applied to the base amount of
retirement allowance. For purpose of this subsection, "consumer price index"
means the consumer price index for all urban consumers, as published by the
United States department of labor. If this index is discontinued or restructured
subsequent to 1983 in a manner materially changing its character, the Retirement
Board shall select the alternative index that most closely preserves the intent
implied in the selection of the specified index. The Retirement Board shall
select the index most closely resembling the specified index for application to
periods for which the specified index was not published.
(5) The base amount of retirement allowance is the amount that would be payable
if the retirement allowance had never been adjusted under the provisions of
Benefit Program E-2.
(6) The adjustment factor shall be 2.5%.
(7) Effective for annual adjustment dates commencing on and after January 1,
1999, all adoptions of Benefit Program E-2 under subsection (1) and all
readoptions shall provide for an annual, automatic non-compounded adjustment
amount of 2.5% of the base amount of retirement allowance, without application
of the last sentence of subsection (3) and subsection (4) in its entirety.
History: 1989 PA 51, Eff. June 12, 1989, and Plan Document of 1996.
Note: Subsection (7) added by Board action of November 19, 1998, with immediate
effect as of November 1, 1998.
Sec. 23. Forms of Payment; Election; Naming of Survivor Beneficiary; Failure to
Make Timely Election; Amount of Retirement Allowance; Election if Member Married
at Retirement Allowance Effective Date; Signature of Spouse; Effect on Election
if Retirant Divorced From Spouse Named as Survivor Beneficiary. Top (1) A member
or a vested former member may elect to have retirement allowance payments made
under 1 of the forms of payment described in subsection (2), and may name a
survivor beneficiary. The election of a form of payment and the naming of a
survivor beneficiary shall be in writing and filed with the Retirement Board
before the date the first retirement allowance payment is made. An election of
form of payment shall not be changed on or after the date the first retirement
allowance payment is made. A named survivor beneficiary shall not be changed on
or after the date the first retirement allowance payment is made if form of
payment II or III is elected. A named survivor beneficiary may be more than 1
person if form of payment IV is elected. A named survivor beneficiary shall have
an insurable interest in the life of the member or vested former member at the
time of naming.
(2) The member or vested former member may elect 1 of the following forms of
payment:
(a) Form of Payment SL - Straight Life Retirement Allowance. Under form of
payment SL the retirant is paid a retirement allowance for life. The amount
shall be determined as provided in section 10.
(b) Form of Payment II - Life With Full Continuation to Survivor Beneficiary.
Under form of payment II the retirant is paid a reduced retirement allowance
until either the retirant or the named survivor beneficiary dies. Upon the death
of the named survivor beneficiary, the retirant is paid the form of payment SL
retirement allowance over the retirant's remaining life. Upon the death of the
retirant during the lifetime of the named survivor beneficiary, the named
survivor beneficiary is paid the full amount of the reduced form of payment II
retirement allowance over the named survivor beneficiary's remaining life.
(c) Form of Payment IIA - Life With 3/4 Continuation to Survivor Beneficiary.
Under form of payment IIA the retirant is paid a reduced retirement allowance
until either the retirant or the named survivor beneficiary dies. Upon the death
of the named survivor beneficiary, the retirant is paid the form of payment SL
retirement allowance over the retirant's remaining life. Upon the death of the
retirant during the lifetime of the named survivor beneficiary, the named
survivor beneficiary is paid 3/4 of the amount of the reduced form of payment
IIA retirement allowance over the named survivor Beneficiary's remaining life.
(d) Form of Payment III - Life With l/2 Continuation to Survivor Beneficiary.
Under form of payment III the retirant is paid a reduced retirement allowance
until either the retirant or the named survivor beneficiary dies. Upon the death
of the named survivor beneficiary, the retirant is paid the form of payment SL
retirement allowance over the retirant's remaining life. Upon the death of the
retirant during the lifetime of the named survivor beneficiary, the named
survivor beneficiary is paid ½ of the amount of the reduced form of payment III
retirement allowance over the named survivor beneficiary's remaining life.
(e) Form of Payment IV - Life With Period Certain Guarantee. Under form of
payment IV the retirant is paid a reduced retirement allowance for life. Upon
the death of the retirant during the guaranteed period, the named survivor
beneficiary is paid the full amount of the reduced form of payment IV retirement
allowance for the remainder of the guaranteed period. The guaranteed period
shall be selected by the retirant at the time of election of form of payment IV
and shall be either 60 months, 120 months, 180 months, or 240 months but the
guaranteed period shall not exceed the retirant's life expectancy as of the date
of the retirement. The actuarial present value of remaining guaranteed
retirement allowance payments shall be paid to the legal representative of the
retirant or the named survivor beneficiary, whichever survives the longest if
both the retirant and named survivor beneficiary die during the guaranteed
period.
(f) Form of Payment V - Life with Accelerated Payment. Under form of payment V
the retirant is paid a retirement allowance for life. The amount of retirement
allowance is increased over the amount under form of payment SL until the
retirant attains the adjustment age specified by the board and is reduced from
the amount under form of payment SL after the retirant attains the adjustment
age. The amount of increase and reduction shall be determined pursuant to
procedures adopted by the Retirement Board. Form of payment V shall not be
elected with respect to a retirement allowance computed under Benefit Program
C-2
as provided in section 19. This form of payment shall cease to be available for
selection after June 25, 1998.
(3) Payment shall be made under form of payment SL if there is not a timely
election of form of payment, except as otherwise provided in subsection (5).
(4) The amount of retirement allowance under forms of payment II, IIA, III, IV,
and V shall have the same actuarial present value as the amount of retirement
allowance under form of payment SL, computed as of the date of retirement.
(5) If a retiring member or vested former member is married at the retirement
allowance effective date, an election under subsection (2), other than an
election under subsection (2)(b), (c), or (d) naming the spouse as survivor
beneficiary, is not effective unless the election is signed by the spouse,
except that this requirement may be waived by the Retirement Board if the
signature of a spouse cannot be obtained because of extenuating circumstances.
(6) If a retirant receiving a reduced retirement allowance under subsection
(2)(b)
to (e) is divorced from the spouse who had been named the retirant's survivor
beneficiary under subsection (2)(b) to (e), the election of a reduced retirement
allowance form of payment shall be considered void by the retirement system if
the judgment of divorce or award or order of the court, or an amended judgment
of divorce or award or order of the court, described in section 53 and dated
after [June 27, 1991] the effective date of [1991 PA 50] that added this
subsection [(6)] provides that the election of a reduced retirement allowance
form of payment under subsection (2)(b) to (e) is to be considered void by the
retirement system and the retirant provides a certified copy of the judgment of
divorce or award or order of the court, or an amended judgment of divorce or
award or order of the court, to the retirement system. If the election of a
reduced retirement allowance form of payment under subsection (2)(b) to (e) is
considered void by the retirement system under this subsection, the retirant's
retirement allowance shall revert to a straight life retirement allowance,
including post-retirement adjustments, if any, subject to an award or order of
the court as described in section 53. The retirement allowance shall revert to a
straight life retirement allowance under this subsection effective the first of
the month after the date the retirement system receives a certified copy of the
judgment of divorce or award or order of the court. This subsection does not
supersede a judgment of divorce or award or order of the court in effect on the
effective date of the amendatory act that added this subsection. This subsection
does not require the retirement system to distribute or pay retirement assets on
behalf of a retirant in an amount that exceeds the actuarially determined amount
that would otherwise become payable if a judgment of divorce had not been
rendered.
(7) A retirement allowance payable under a form of payment provided in this
section is subject to an eligible domestic relations order under the Eligible
Domestic Relations Order Act.
(8) Each member or vested former member who applies for retirement shall be
given a written explanation, prior to retirement, of the optional forms of
payment provided in section 23. The explanation shall be written in simple
language.
History: 1991 PA 50, Eff. June 27, 1991, and Plan Document of 1996.
Note 1: Bracketed explanatory text added to subsection (6).
Note 2: Bold text in subparagraph (2)(f) added by Board action of June 25, 1998,
with immediate effect.
Sec. 23A. Adoption of Benefit Program RS50%; Specifying Effective Date of Change
in Coverage; Duration and Amount of Payment to Surviving Spouse; "Surviving
Spouse" Defined. Top (1) A participating municipality may by resolution of its
governing body or a participating court may by administrative order of its chief
judge adopt Benefit Program RS50%. The resolution or administrative order shall
specify the effective date of the change in coverage.
(2) Under Benefit Program RS50%, a surviving spouse of a deceased retirant shall
be paid a retirement allowance for life if both of the following conditions are
met:
(a) The deceased retirant's retirement allowance effective date was on or after
the effective date of the change in coverage.
(b) All payments of the deceased retirant's retirement allowance were made
pursuant to form of payment SL as prescribed in section 23(2)(a).
(3) The amount of the retirement allowance payable to a surviving spouse under
Benefit Program RS50% is 50% of the retirement allowance payable to the deceased
retirant at the time of his or her death.
(4) As used in this section, "surviving spouse" means a person who meets both of
the following requirements:
(a) He or she was married to the deceased retirant during the period beginning 1
year before the deceased retirant's retirement allowance effective date and
ending on the retirement allowance effective date.
(b) He or she was married to the deceased retirant on the date of the deceased
retirant's death.
History: 1990 PA 99, Eff. June 7, 1990, and Plan Document of 1996.
Sec. 24. Retirement of Incapacitated Member; Conditions; Medical Examinations;
Effective Date of Disability Retirement; Amount of Disability Retirement
Allowance; Exceptions. Top (1) The Retirement Board may retire a member, other
than a member covered by Benefit Program DC, who becomes incapacitated for
continued employment by the member's participating municipality or participating
court if each of the following conditions is met:
(a) Application for disability retirement is filed with the retirement system by
either the member or the member's participating municipality or participating
court within 1 year after the date the member ceases to be paid by the
participating municipality or participating court.
(b) The member has the minimum years of credited service required to be a vested
former member in the event of termination of membership.
(c) The member undergoes the medical examinations and tests ordered by the
retirement system.
(d) The medical adviser certifies all of the following to the Retirement Board:
(i) The member is mentally or physically incapacitated for any continued
employment by the participating municipality or participating court.
(ii) The incapacity is likely to be permanent.
(iii) The member should be retired.
(2) Medical examination shall be made by or under the direction of a medical
adviser selected by the Retirement Board. The effective date of a disability
retirement shall not predate either of the following:
(a) The date of the disability.
(b) The date the member ceases to be paid by the participating municipality or
participating court.
(3) The amount of a disability retirement allowance shall be computed in
accordance with the benefit programs that are applicable to the disability
retirant's credited service. The early retirement reduction provisions of
section 10(3) shall not be applied.
(4) The following exceptions to the provisions of subsections (1) to (3) shall
apply if the Retirement Board finds that the member's disability was the natural
and proximate result of a personal injury or disease arising out of and in the
course of the member's actual performance of duty in the employ of the
participating municipality or participating court.
(a) The credited service requirement of subsection (1)(b) shall be waived.
(b) The amount of retirement allowance shall not be less than 25% of the
member's final average compensation.
(5) A participating municipality or participating court may adopt Benefit
Program D-2. Under Benefit Program D-2, the following exceptions to the
provisions of subsections (1) to (3) shall apply if the Retirement Board finds
that the member's disability was the natural and proximate result of a personal
injury or disease arising out of and in the course of the member's actual
performance of duty in the employ of the participating municipality or
participating court:
(a) The credited service requirement of subsection (1)(b) shall be waived.
(b) There shall be paid a retirement allowance in an amount which is the greater
of:
(i) 25% of the member's final average compensation; or
(ii) 10 years of credited service in addition to the member's actual period of
credited service provided that the total years of credited service may not
exceed the greater of 30 years or the member's actual period of credited
service.
In all cases where the retirement allowance Benefit Program in effect imposes a
limitation on the maximum amount of retirement allowance payable, including but
not limited to Benefit Programs B-3 and B-4, then the Benefit Program D-2
allowance shall not exceed such limitation.
History: 1988 PA 500, Eff. Dec 29, 1988, and Plan Document of 1996.
Note: Bold text in last sentence of subparagraph (5)(b)(ii) added by Board
action of November 19, 1998, with immediate effect.
Sec. 25. Disability Retirant Under Age 60; Periodic Medical Examination;
Suspension; Revocation, or Discontinuance of Disability Pension; Conditions to
Restoration of Terminated Disability Retirant's Actual Credited Service; Service
Not Credited for Period of Disability; Terminated Disability Retirant as Vested
Former Member. Top (1) The Retirement Board may require a disability retirant
who has not attained age 60 years to undergo periodic medical examination by or
under the direction of a medical adviser selected by the Retirement Board. If a
disability retirant refuses to submit to a medical examination, payment of the
retirement allowance may be suspended by the Retirement Board until withdrawal
of the refusal. If the refusal continues for 1 year, all of the disability
retirant's rights in and to a disability pension may be revoked by the
Retirement Board. A disability retirement allowance shall be discontinued if
following the medical examination the medical adviser certifies that the
disability retirant is mentally and physically able and capable of resuming
gainful employment with the participating municipality or participating court
from which retired, and the Retirement Board concurs in the certification of the
medical adviser.
(2) The membership status of a terminated disability retirant who is
subsequently employed by a participating municipality or participating court
shall be governed by the provisions of section 3. The terminated disability
retirant's actual credited service at the time of disability retirement shall be
restored upon again acquiring membership if both of the following conditions are
satisfied:
(a) Membership is on account of employment with the same participating
muni-cipality
or participating court from which the member previously retired.
(b) Membership is reacquired within 5 years from the date of termination of the
disability retirement allowance.
(3) Service shall not be credited for the period a disability retirant is being
paid a disability retirement allowance.
(4) A terminated disability retirant who does not again become a member with
restoration of credited service pursuant to subsection (2) shall become a vested
former member.
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996.
Sec. 26. Conditions to Payment of Retirement Allowance for Surviving Spouse;
Commencement and Amount of Payment; Conditions to Payment of Retirement
Allowance to Surviving Child, Restriction; Termination and Amount of Surviving
Child's Retirement Allowance; Presumptions. Top (1) A retirement allowance shall
be paid for life to the surviving spouse of a deceased member or a deceased
vested former member, other than a member or vested former member covered by
Benefit Program DC, if each of the following conditions is met:
(a) The member or vested former member has the minimum years of credited service
required to be a vested former member in the event of termination of membership.
(b) The member or vested former member was married to the surviving spouse at
the time of death.
(c) The member or vested former member does not have a section 28 named
contingent survivor beneficiary at the time of death.
(2) Payment of a retirement allowance to the surviving spouse of a deceased
vested former member shall not commence before the date the member would have
first satisfied a section 10 age and service requirement for retirement without
application of the section 10(3) reduction factor. The amount of a surviving
spouse's retirement allowance shall be 85% of the deceased member's or deceased
vested former member's accrued retirement allowance, except that the amount
shall not be less than the amount that would be paid under section 28 if the
spouse had been named the contingent survivor beneficiary of the deceased member
or deceased vested former member.
(3) A retirement allowance shall be paid to each surviving child of a deceased
member or a deceased vested former member, other than a member or vested former
member covered by Benefit Program DC, if each of the following conditions is
met:
(a) The member or vested former member has the minimum years of credited service
required to be a vested former member in the event of termination of membership.
(b) The child is unmarried and has not attained age 21 years.
(c) The member or vested former member does not have a section 28 named
contingent survivor beneficiary at the time of death.
(4) Payment of a retirement allowance to a surviving child shall not be made for
any month for which a surviving spouse is paid a retirement allowance. A
surviving child's retirement allowance shall terminate upon the child's
twenty-first
birthday or upon the prior marriage or death of the child. The amount of a
surviving child's retirement allowance shall be an equal share of 50% of the
deceased member's or the deceased vested former member's accrued retirement
allowance. A child's share shall be recomputed each time there is a change in
the number of surviving children eligible for payment of a retirement allowance.
(5) A deceased member's or a deceased vested former member's accrued retirement
allowance shall be computed under the following presumptions:
(a) The deceased member or deceased vested former member shall be presumed to
have retired under the provisions of section 10, exclusive of section 10(3), on
the day preceding death.
(b) The deceased member shall be presumed to have elected form of payment SL.
(6) The presumptions of retiring and election of form of payment shall be
effective notwithstanding the failure to satisfy the specific requirements of
section 10 and 23 with regard to such activities.
History: 1986 PA 291, Eff. Dec. 22, 1986, and Plan Document of 1996.
Sec. 27. Death Resulting From Injury or Disease Arising Out of and in Course of
Duty; Additional Provision Applicable To Section 26. Top If the death of a
member is found by the Retirement Board to be the natural and proximate result,
independent of all other causes, a personal injury or disease arising out of and
in the course of the member's actual performance of duty with a participating
municipality or participating court, the following additional provisions shall
apply to section 26.
(1) The credited service requirement specified in section 26 shall be waived.
(2) The amount of retirement allowance paid a surviving spouse shall not be less
than 25% of the deceased member's final average compensation.
(3) The amount of retirement allowance paid a surviving child shall not be less
than an equal share of 25% of the deceased member's final average compensation.
(4) If the participating municipality or participating court has adopted Benefit
Program D-2, the amount of retirement allowance paid a surviving spouse or
surviving child shall not be less than the amount computed as if the member had
acquired 10 years of credited service in addition to the member's actual period
of credited service, provided that the total years of credited service may not
exceed the greater of 30 years or the member's actual period of credited
service.
In all cases where the retirement allowance Benefit Program in effect imposes a
limitation on the maximum amount of retirement allowance payable, including but
not limited to Benefit Programs B-3 and B-4, then the Benefit Program D-2
allowance shall not exceed such limitation.
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996.
Note: Bold text in last sentence of subsection (4) added by Board action of
November 19, 1998, with immediate effect.
Sec. 27A. Remarriage of Surviving Spouse. Top The remarriage of a surviving
spouse shall not render the surviving spouse ineligible to receive the pension
or retirement allowance provided for in section 51a or 58 of former Act No. 135
of the Public Act of 1945, or in the predecessor sections to section 51a or 58
of former Act No. 135 of the Public Acts of 1945. A surviving spouse whose
pension or retirement allowance under section 51a or 58 of former Act No. 135 of
the Public Acts of 1945 or under a predecessor section to section 51a or 58 of
former Act No. 135 of the Public Acts of 1945 was terminated due to the
surviving spouse's remarriage shall be eligible to receive that pension or
allowance beginning on the first day of the month following the month in which
written application for reinstatement is filed with the board, but shall not be
eligible to receive the pension or allowance attributable to any month beginning
before the effective date of reinstatement under this section. This section
shall apply to a participating municipality upon approval by resolution of the
participating municipality.
History: 1986 PA 26, Eff. Mar. 10, 1986, and Plan Document of 1996.
Sec. 28. Contingent Survivor Beneficiary. Top A member or a vested former member
other than a member covered by Benefit Program DC, may name a contingent
survivor beneficiary for the exclusive purpose of being paid a retirement
allowance under this section. The naming of a contingent survivor beneficiary
shall be in writing and filed with the retirement system. The contingent
survivor beneficiary of a member may be revoked or changed at any time before
termination of membership. The contingent survivor beneficiary of a vested
former member may be revoked or changed at any time prior to the effective date
of retirement.
(2) A retirement allowance shall be paid to the contingent survivor beneficiary
for life, if each of the following conditions is met:
(a) The member dies while still a member employed by a participating
municipality or participating court or the vested former member dies prior to
the effective date of retirement.
(b) The member at time of death has the minimum years of credited service
required to be a vested former member in the event of termination of membership.
(c) The contingent survivor beneficiary is found by the Retirement Board to have
an insurable interest in the life of the deceased member or deceased vested
former member.
(d) A spouse, if married to the member or vested former member at the time of
the election, has agreed in writing to the naming of the contingent survivor
beneficiary if that beneficiary is a person other than the spouse.
(3) Payment of a retirement allowance to the contingent survivor beneficiary of
a deceased vested former member shall not commence prior to the date the vested
former member would have first satisfied a section 10 age and service
requirement for retirement without application of the section 10(3) reduction
factor. The amount of retirement allowance payable to a contingent survivor
beneficiary shall be computed under the following presumptions:
(a) The deceased member shall be presumed to have retired under section 10,
exclusive of section 10(3), on the day preceding the member's death. The
deceased vested former member shall be presumed to have retired under section 10
on the date the vested former member would have first satisfied a section 10 age
and service requirement for retirement without application of the section 10(3)
reduction factor.
(b) The deceased member or deceased vested former member shall be presumed to
have elected form of payment II and named the contingent survivor beneficiary as
survivor beneficiary.
(c) If the contingent survivor beneficiary is the spouse of the deceased member
or deceased vested former member, the amount of retirement allowance payable to
the contingent survivor beneficiary shall not be less than the amount that would
have been payable under section 26 if there had been no named contingent
survivor beneficiary.
(4) The presumptions of retiring, election of form of payment, and naming of
survivor beneficiary shall be effective notwithstanding the failure to satisfy
the specific requirements of sections 10 and 23 with regard to such activities.
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996.
Sec. 29. Provisions Applicable During Period Between Effective Date of
Disability Retirement Allowance and Date Disability Attains Age 60 or Where
Adopted by Resolution, the Age for Age and Service Retirement. Top (1) This
section shall apply during the period between the effective date of retirement
allowance arising from disability retirement under section 24 and the date the
disability retirant attains age 60 years. As an alternative to age 60, where
provided for by Resolution of the governing body of the participating
municipality or by administrative order of the chief judge of a participating
court filed with the Retirement Board, there may be adopted instead for all
current and future disability retirants the age required for age and service
retirement under the benefit program in effect on the date the disability
retirant ceased to be paid so long as the service requirement was met on such
date. Application of the limitation shall be to the amount of retirement
allowance under form of payment SL. The effect of an election of any other form
of payment shall be taken into account after application of this section.
(2) The amount of a retirement allowance shall not exceed the difference
between:
(a) One hundred percent of the retired member's final average compensation.
(b) The amount of the retired member's considered income.
(3) A retired member's considered income is the annual sum of income from the
following sources:
(a) Remuneration for personal services rendered in any gainful employment.
Gainful employment existing at the time of disability retirement, other than
with the participating municipality or participating court from which retired,
shall not be considered to the extent of the amount of remuneration in the last
calendar year preceding retirement.
(b) Worker's compensation weekly benefits, redemptions, and settlements, on
account of the same disability for which retired. Worker's compensation benefits
for bona fide medical expenses shall not be considered.
(c) Payments from any program of salary continuance, sickness and accident
insurance, disability insurance, or program of similar purpose, financed in
whole or in part by a participating municipality or participating court.
(d) Payments received by the member from the federal social security old-age,
survivors, disability and health insurance program. Payments received by
dependents from the federal social security old-age, survivors, disability and
health insurance program are not considered income under this subsection.
(4) Cost of living increases in the amount of considered income from worker's
compensation and federal social security shall be disregarded for the purposes
of this section.
(5) The retirement system shall compute the initial amount of retirement
allowance on the presumption that the retirant is receiving social security
disability benefits and worker's compensation weekly benefits. The presumed
amounts shall be determined on the basis of the retirant's final average
compensation and the single person statutory benefits. The retirant may, at any
time, submit evidence of receipt of a lesser amount of social security and
worker's compensation. The retirement system shall adjust the amount of
retirement allowance to reflect the actual amount of social security and
worker's compensation being received if it finds the submitted evidence
substantiates the retirant's claim.
(6) A disability retirant may submit an affidavit declaring that applications
for social security and worker's compensation benefits have not and will not be
made to avoid application of the presumption of receipt. The affidavit shall
also contain the promise that the disability retirant will immediately notify
the retirement system if an application for social security or worker's
compensation benefits is filed at a later date.
(7) The retirement system shall periodically request substantiated income
information from retirants subject to this section. Failure to provide requested
information within 90 days of the request shall cause suspension of payment of
the retirement allowance until the information is received.
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996.
Note: Bold text in subsection (1) added by Board action of February 25, 1998,
with immediate effect.
Sec. 30. Commencement, Termination, and Change in Retirement Allowance. Top (1)
A service or disability retirement allowance under section 10 or 24 shall
commence the first day of the calendar month coincident with or next following
the member's or vested former member's date of retirement. A pre-retirement
survivor retirement allowance under section 26 or 28 shall commence the first
day of the calendar month in which occurs the event causing payment of the
retirement allowance.
(2) Termination of a retirement allowance shall occur at the end of the month in
which occurs the event causing termination. Payment shall be made for the full
month of termination.
(3) A change in the amount of a retirement allowance shall occur on the first
day of the calendar month next following the month in which occurs the event
causing the change.
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996.
Sec. 31. Employment by Participating Municipality or Court; Special Conditions.
Top The following special conditions shall apply if a retirant becomes employed
by a participating municipality or participating court:
(1) Payment of the retirant's retirement benefit shall be suspended if the
retirant becomes employed by the participating municipality or participating
court from which the retirant retired. Suspension of payment shall become
effective the first day of the calendar month next following the date the member
earns more than $10,000.00 in gross compensation during a calendar year on
account of the reemployment until the retirant attains age 70 years. Payment of
the retirement benefit shall resume, without change in amount or conditions by
reason of the employment, on the first day of the calendar month next following
termination of employment or on the January 1 following the suspension of the
retirement benefit if the reemployment is not terminated. The retirant shall not
be a member during the period of employment.
(2) Payment of the retirant's retirement benefit shall continue, without change
in amount or conditions by reason of the employment, if the retirant becomes
employed by a participating municipality or participating court other than the
participating municipality or participating court from which the retirant
retired. The retirant shall be considered, for the purposes of membership and
potential benefit entitlement, in the same manner as an individual with no
previous record of employment by a participating municipality or participating
court.
History: 1992 PA 63, Eff. May 22, 1992, and Plan Document of 1996.
Note: Bold text in subsection (1) added by Board action of November 12, 1997,
effective January 1, 1998.
Page 4 of 9
"Our Present is Your Future"
Municipal Employees' Retirement System of Michigan Plan Document
(As revised through December 31, 1999)
Page 5 of 9
ARTICLE IV. CONTRIBUTIONS
Section 32 Contribution Programs
Section 33 Contribution Program P
Section |