reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.52 - Calculation of Accrued Cost Savings for Each Fiscal Year.

38.52 Calculation of accrued cost savings for each fiscal year.
Sec. 52.
After consulting the retirement system's actuary, the department of management and budget shall calculate for each fiscal year any cost savings that have accrued to this state as a result of the implementation of 1996 PA 487 over the costs that would have been incurred by this state to fund this retirement system had 1996 PA 487 not been implemented. For each fiscal year in which a deposit under section 38(6) does not occur, the department may deposit all or part of the cost savings calculated pursuant to this section into the health advance funding subaccount created under section 11(9) by reducing the normal cost and unfunded actuarial accrued liability contribution rates as calculated pursuant to section 38, and increasing the contribution rate for benefits provided under section 20d by the same amount. However, the normal cost and unfunded accrued actuarial liability rates shall not be reduced to an amount less than zero.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997 ;-- Am. 2002, Act 93, Imd. Eff. Mar. 27, 2002
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.53 - Meanings of Words and Phrases; Definitions; a to C.

38.53 Meanings of words and phrases; definitions; A to C.
Sec. 53.
(1) For the purposes of this section and sections 54 to 69, the words and phrases defined in this section and sections 54 to 69 have the meanings ascribed to them in those sections.
(2) "Accumulated balance" means the total balance in a qualified participant's, former qualified participant's, or refund beneficiary's individual account in Tier 2.
(3) "Compensation" means the remuneration paid a participant on account of the participant's services rendered to his or her employer equal to the sum of the following:
(a) A participant's W-2 earnings for services performed for the employer excluding part B annual leave hours paid at separation.
(b) Any amount contributed or deferred at the election of the participant which is excluded from gross income under section 125, 132(f)(4), 401(k), 403(b), or 457 of the internal revenue code, 26 USC 125, 132, 401, 403, and 457.
(c) Beginning October 1, 2003, the value of any unpaid furlough hours and the value of any unpaid hours exchanged for part B annual leave hours calculated at the participant's then current hourly rate or rates of pay for a period during which a participant is participating in the banked leave time program.
(d) The value of hours not worked during which a participant is in a voluntary or involuntary pay reduction plan A or on 1-day layoff or designated temporary layoff calculated at the participant's then current hourly rate or rates of pay.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997 ;-- Am. 2004, Act 33, Imd. Eff. Mar. 22, 2004
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.54 - Definitions; E to H.

38.54 Definitions; E to H.
Sec. 54.
(1) "Employer" means this state or, if a qualified participant is not employed by this state but is a participant in Tier 2 by virtue of his or her employment, the employer that pays his or her compensation.
(2) "Former qualified participant" means an individual who was a qualified participant and who terminates the employment upon which his or her participation is based for any reason.
(3) "Health benefit dependent" means the qualified or former qualified participant's spouse, if any, and an unmarried child who is considered a dependent of the qualified or former qualified participant under section 152 of the internal revenue code, if any.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.56 - State Treasurer; Powers and Duties.

38.56 State treasurer; powers and duties.
Sec. 56.
(1) The state treasurer shall administer Tier 2 and shall invest the assets of Tier 2. The state treasurer is the fiduciary and trustee of Tier 2. The state treasurer may appoint an advisory board to assist the state treasurer in carrying out his or her duties as fiduciary and trustee.
(2) The state treasurer shall determine the provisions and procedures of Tier 2 in conformity with this act and the internal revenue code.
(3) The state treasurer has the exclusive authority and responsibility to employ or contract with personnel and for services that the state treasurer determines necessary for the proper administration of and investment of assets of Tier 2, including but not limited to managerial, professional, legal, clerical, technical, and administrative personnel or services.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.57 - Hearing.

38.57 Hearing.
Sec. 57.
(1) A qualified participant, former qualified participant, health benefit dependent, or refund beneficiary may request a hearing on a claim involving his or her rights under Tier 2. Upon written request, the state treasurer shall provide for a hearing that shall be conducted pursuant to chapter 4 of the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.271 to 24.287 of the Michigan Compiled Laws. An individual may be represented by counsel or other duly authorized agent at a hearing conducted under this section.
(2) Chapters 2, 3, and 5 of Act No. 306 of the Public Acts of 1969, being sections 24.224 to 24.264 and 24.291 to 24.292 of the Michigan Compiled Laws, do not apply to the establishment, implementation, administration, operation, investment, or distribution of Tier 2.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.58 - Investment of Employer and Employee Contributions and Earnings; Direction by Participant.

38.58 Investment of employer and employee contributions and earnings; direction by participant.
Sec. 58.
Each qualified participant, former qualified participant, and refund beneficiary shall direct the investment of the individual's accumulated employer and employee contributions and earnings to 1 or more investment choices within available categories of investment provided by the state treasurer. The limitations on the percentage of total assets for investments provided in Act No. 314 of the Public Acts of 1965, being sections 38.1132 to 38.1140i of the Michigan Compiled Laws, do not apply to Tier 2.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.59 - Payment of Administrative Expenses.

38.59 Payment of administrative expenses.
Sec. 59.
The administrative expenses of Tier 2 shall be paid by the qualified participants, former qualified participants, and refund beneficiaries who have not closed their accounts in a manner determined by the state treasurer.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.60 - Other Public Sector Retirement Benefits Plan; Participation.

38.60 Other public sector retirement benefits plan; participation.
Sec. 60.
A qualified participant shall not participate in any other public sector retirement benefits plan for simultaneous service rendered to the same public sector employer. Except as otherwise provided in this act or by the state treasurer, this section does not prohibit a qualified participant from participating in a retirement plan established by this state or other public sector employer under the internal revenue code.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.61 - Election by Elected or Appointed Official.

38.61 Election by elected or appointed official.
Sec. 61.
An elected or appointed official who is first elected or appointed on or after March 31, 1997 may irrevocably elect not to become a qualified participant of Tier 2 or may irrevocably elect to discontinue participation in Tier 2 by filing written notice of the election with the state treasurer. Upon receipt of the election, his or her employer shall not contribute any percentage of compensation under section 63 for the official who makes either election.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.62 - Transfer of Amount; Crediting and Charging Participant Account.

38.62 Transfer of amount; crediting and charging participant account.
Sec. 62.
(1) The state treasurer shall promptly credit the Tier 2 account of a qualified participant or former qualified participant who makes an election under section 50 to terminate membership in Tier 1 with any amount transferred from Tier 1 pursuant to section 51.
(2) Not later than 30 days after receipt of a recomputed amount under section 51(2), (4), or (6), the state treasurer shall charge the participant's Tier 2 account for any amount of excess transfers under section 51(1), (3), or (5) and transfer that amount to the appropriate fund in Tier 1. The state treasurer may determine which investment choice or choices within a participant's Tier 2 account will be used for this purpose.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.63 - Contributions by Employer and Participant.

38.63 Contributions by employer and participant.
Sec. 63.
(1) This section is subject to the vesting requirements of section 64.
(2) A qualified participant's employer shall contribute to the qualified participant's account in Tier 2 an amount equal to 4% of the qualified participant's compensation.
(3) A qualified participant may periodically elect to contribute up to 3% of his or her compensation to his or her Tier 2 account. The qualified participant's employer shall make an additional contribution to the qualified participant's Tier 2 account in an amount equal to the contribution made by the qualified participant under this subsection.
(4) A qualified participant may make contributions in addition to contributions made under subsection (3) to his or her Tier 2 account as permitted by the state treasurer and the internal revenue code. The qualified participant's employer shall not match contributions made by the qualified participant under this subsection.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.63a - Tier 2 and Tax-Deferred Accounts; Terms and Conditions.

38.63a Tier 2 and tax-deferred accounts; terms and conditions.
Sec. 63a.
Tier 2 and tax-deferred accounts are subject to the following terms and conditions:
(a) On or before April 1, 2012, the retirement system shall design an automatic enrollment feature that provides that unless a qualified participant who makes contributions under section 63(3) or who is described in section 68b(2) elects to contribute a lesser amount, the qualified participant shall contribute the amount required to qualify for all eligible matching contributions under this act. The retirement system shall implement this automatic enrollment feature on or after April 1, 2012, as determined by the retirement system.
(b) In addition to elective employee contributions to Tier 2 or a tax-deferred account, the state may use elective employee contributions to the state 457 deferred compensation plan as a basis for making employer matching contributions to Tier 2 or a tax-deferred account.
(c) Employer matching contributions do not have to be made to the same plan or account to which the elective employee contributions were contributed as the basis for the matching contributions.
(d) Elective employee contributions shall not be used as the basis for more than an equivalent amount of employer matching contributions.
(e) The retirement system shall design and implement a method to determine the proper allocation of employer matching contributions based on elective employee contributions as provided in this section.
History:
Add. 2011, Act 264, Imd. Eff. Dec. 15, 2011
Compiler's Notes:
Enacting section 1 of Act 264 of 2011 provides:"Enacting section 1. If the office of retirement services in the department of technology, management, and budget receives notification from the United States internal revenue service that any section or any portion of a section of this amendatory act will cause the retirement system to be disqualified for tax purposes under the internal revenue code, then the portion that will cause the disqualification does not apply."
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.64 - Tier 2; Vesting Requirements.

38.64 Tier 2; vesting requirements.
Sec. 64.
(1) A qualified participant is immediately 100% vested in his or her contributions made to Tier 2 and employer contributions under the banked leave time program. Except as otherwise provided in this section, a qualified participant shall vest in the employer contributions made on his or her behalf to Tier 2 according to the following schedule:
(a) Upon completion of 2 years of service, 50%.
(b) Upon completion of 3 years of service, 75%.
(c) Upon completion of 4 years of service, 100%.
(2) A qualified participant is eligible for the health insurance coverage provided in section 68 if the qualified participant meets 1 of the following requirements:
(a) The qualified participant has completed 10 years of service as a qualified participant, was not a member, deferred member, or former nonvested member of Tier 1, was first employed and entered upon the payroll of his or her employer before January 1, 2012, and did not make an election to opt out of health insurance coverage under section 68b.
(b) The qualified participant was a member, deferred member, or former nonvested member of Tier 1 who made an election to participate in Tier 2 pursuant to section 50, and who has met the service requirements he or she would have been required to meet in order to vest in health benefits under section 20d.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997 ;-- Am. 2004, Act 33, Imd. Eff. Mar. 22, 2004 ;-- Am. 2011, Act 264, Imd. Eff. Dec. 15, 2011
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”Enacting section 1 of Act 264 of 2011 provides:"Enacting section 1. If the office of retirement services in the department of technology, management, and budget receives notification from the United States internal revenue service that any section or any portion of a section of this amendatory act will cause the retirement system to be disqualified for tax purposes under the internal revenue code, then the portion that will cause the disqualification does not apply."
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.65 - Crediting Years of Service Accrued.

38.65 Crediting years of service accrued.
Sec. 65.
A qualified participant who was a member, deferred member, or former nonvested member of Tier 1 shall be credited with the years of service accrued under Tier 1 on the effective date of participation in Tier 2 for the purpose of meeting the vesting requirements for benefits under section 64.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997 ;-- Am. 2011, Act 264, Imd. Eff. Dec. 15, 2011
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”Enacting section 1 of Act 264 of 2011 provides:"Enacting section 1. If the office of retirement services in the department of technology, management, and budget receives notification from the United States internal revenue service that any section or any portion of a section of this amendatory act will cause the retirement system to be disqualified for tax purposes under the internal revenue code, then the portion that will cause the disqualification does not apply."
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.66 - Refund Beneficiary.

38.66 Refund beneficiary.
Sec. 66.
A qualified participant or former qualified participant may nominate 1 or more individuals as a refund beneficiary by filing written notice of nomination with the state treasurer. If the qualified participant or former qualified participant is married at the time of the nomination and the participant's spouse is not the refund beneficiary for 100% of the account, the nomination is not effective unless the nomination is signed by the participant's spouse. However, the state treasurer may waive this requirement if the spouse's signature cannot be obtained because of extenuating circumstances.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.67 - Distributions of Accumulated Balance.

38.67 Distributions of accumulated balance.
Sec. 67.
(1) A qualified participant is eligible to receive distribution of his or her accumulated balance in Tier 2 upon becoming a former qualified participant.
(2) Upon the death of a qualified participant or former qualified participant, the accumulated balance of that deceased participant is considered to belong to the refund beneficiary, if any, of that deceased participant. If a valid nomination of refund beneficiary is not on file with the state treasurer, the state treasurer, in a lump sum distribution, shall distribute the accumulated balance to the legal representative, if any, of the deceased participant or, if there is no legal representative, to the deceased participant's estate.
(3) A former qualified participant or refund beneficiary may elect 1 or a combination of several of the following methods of distribution of the accumulated balance:
(a) A lump sum distribution to the recipient.
(b) A lump sum direct rollover to another qualified plan, to the extent allowed by federal law.
(c) Periodic distributions, as authorized by the state treasurer.
(d) No current distribution, in which case the accumulated balance shall remain in Tier 2 until the former qualified participant or refund beneficiary elects a method or methods of distribution under subdivisions (a) to (c), to the extent allowed by federal law.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.68a - Appropriation Amount; Purpose; Work Project; Estimated Completion Date.

38.68a Appropriation amount; purpose; work project; estimated completion date.
Sec. 68a.
In addition to the amount appropriated in part 1 of 2001 PA 83 for retirement services, there is appropriated for the fiscal year ending September 30, 2002, $2,100,000.00 in pension trust funds to the department of management and budget, retirement services, for administration of the changes created by House Bill No. 5732 of the 91st Legislature. The unexpended portion of this appropriation is considered a work project appropriation. The project will be accomplished by the use of department personnel and contracting with private consultants with an estimated completion date of September 30, 2003.
History:
Add. 2002, Act 99, Imd. Eff. Mar. 27, 2002
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.68d - Administration of Changes; Appropriation.

38.68d Administration of changes; appropriation.
Sec. 68d.
(1) There is appropriated for the fiscal year ending September 30, 2010, $1,600,000.00 to the office of retirement services in the department of technology, management, and budget for administration of the changes under the amendatory act that added this section.
(2) The appropriation authorized in subsection (1) is a work project appropriation, and any unencumbered or unallotted funds are carried forward into the following fiscal year. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to administer changes under the amendatory act that added this section.
(b) The work project will be accomplished through a plan utilizing interagency agreements, employees, and contracts.
(c) The total estimated completion cost of the work project is $1,600,000.00.
(d) The estimated completion date for the work project is September 30, 2011.
History:
Add. 2010, Act 185, Imd. Eff. Sept. 30, 2010
Compiler's Notes:
Enacting section 1 of Act 185 of 2010 provides:"Enacting section 1. If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety."
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.68e - Appropriation.

38.68e Appropriation.
Sec. 68e.
(1) There is appropriated for the fiscal year ending September 30, 2012 $1,900,000.00 to the office of retirement services in the department of technology, management, and budget for administration of the changes under the amendatory act that added this section.
(2) The appropriation authorized under subsection (1) is a work project appropriation, and any unencumbered or unallotted funds are carried forward into the following fiscal year. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to administer changes under the amendatory act that added this section.
(b) The work project will be accomplished through a plan utilizing interagency agreements, employees, and contracts.
(c) The total estimated completion cost of the work project is $1,900,000.00.
(d) The estimated completion date for the work project is September 30, 2013.
History:
Add. 2011, Act 264, Imd. Eff. Dec. 15, 2011
Compiler's Notes:
Enacting section 1 of Act 264 of 2011 provides:"Enacting section 1. If the office of retirement services in the department of technology, management, and budget receives notification from the United States internal revenue service that any section or any portion of a section of this amendatory act will cause the retirement system to be disqualified for tax purposes under the internal revenue code, then the portion that will cause the disqualification does not apply."
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69) › Section 38.69 - Exemptions From Taxation; Subject to Public Employee Retirement Benefit Protection Law; Right of Setoff to Recover Overpayments; Satisfaction of Claims Arising From Embezzlement or Fraud; Correction of Errors in Records and Actions.

38.69 Exemptions from taxation; subject to public employee retirement benefit protection law; right of setoff to recover overpayments; satisfaction of claims arising from embezzlement or fraud; correction of errors in records and actions.
Sec. 69.
(1) Distributions from employer contributions made pursuant to section 63(2) and (3) and earnings on those employer contributions, and distributions from employee contributions made pursuant to section 63(3) and earnings on those employee contributions, are exempt from any state, county, municipal, or other local tax. Distributions from employer contributions made pursuant to section 63(2) and (3) and earnings on those employer contributions and distributions from employee contributions made pursuant to section 63(3) and earnings on those employee contributions are subject to the public employee retirement benefit protection act.
(2) The state treasurer has the right of setoff to recover overpayments made under this act and to satisfy any claims arising from embezzlement or fraud committed by a qualified participant, former qualified participant, refund beneficiary, or other person who has a claim to a distribution or any other benefit from Tier 2.
(3) The state treasurer shall correct errors in the records and actions in Tier 2 under this act, and shall seek to recover overpayments and shall make up underpayments.
History:
Add. 1996, Act 487, Eff. Mar. 31, 1997 ;-- Am. 2002, Act 99, Imd. Eff. Mar. 27, 2002
Compiler's Notes:
Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article I - Definitions. (38.71...38.75) › Section 38.71 - “Teacher” Defined.

38.71 “Teacher” defined.
Sec. 1.
(1) The term "teacher" as used in this act means a certificated individual employed for a full school year by any board of education or controlling board.
(2) An individual who is not certificated but is employed for a full school year pursuant to section 1233b of the revised school code, Act No. 451 of the Public Acts of 1976, being section 380.1233b of the Michigan Compiled Laws, or is employed pursuant to an annual vocational authorization or a temporary approval, as defined in state board rule, is considered to be a teacher for the purpose of serving the probationary period under article II, but such an individual is not considered a teacher for the purpose of continuing tenure under article III until he or she becomes certificated.
(3) An individual employed as a teacher in a public school academy established under Act No. 451 of the Public Acts of 1976, being sections 380.1 to 380.1852 of the Michigan Compiled Laws, is not considered a teacher during that employment for the purpose of continuing tenure under article III. However, an individual described in section 1(4) of article III is a teacher for the purpose of retaining continuing tenure as described in that section.
(4) Teacher does not include an individual whose teaching certificate has expired or has been suspended or revoked.
History:
1937, Ex. Sess., Act 4, Eff. Sept. 1, 1937 ;-- CL 1948, 38.71 ;-- Am. 1967, Act 216, Imd. Eff. July 10, 1967 ;-- Am. 1993, Act 59, Imd. Eff. June 11, 1993 ;-- Am. 1993, Act 337, Imd. Eff. Dec. 31, 1993 ;-- Am. 1996, Act 282, Imd. Eff. June 17, 1996
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article I - Definitions. (38.71...38.75) › Section 38.72 - “Certificated” Defined.

38.72 “Certificated” defined.
Sec. 2.
The term "certificated" means holding a valid teaching certificate, as defined by the state board of education. For the purpose of this section, an individual is considered to be holding a valid teaching certificate if the individual has on file with his or her employing school district either an appropriate teaching certificate issued by the state board of education or, if the individual's application for a teaching certificate has not been confirmed or rejected by the state board, written evidence from the individual's teacher education college that he or she meets the requirements described in section 1535 of the school code of 1976, Act No. 451 of the Public Acts of 1976, being section 380.1535 of the Michigan Compiled Laws.
History:
1937, Ex. Sess., Act 4, Eff. Sept. 1, 1937 ;-- CL 1948, 38.72 ;-- Am. 1967, Act 216, Imd. Eff. July 10, 1967 ;-- Am. 1993, Act 59, Imd. Eff. June 11, 1993
Popular Name:
Teachers' Tenure Act
Admin Rule:
R 390.661 of the Michigan Administrative Code.
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article I - Definitions. (38.71...38.75) › Section 38.73 - “Controlling Board” Defined.

38.73 “Controlling board” defined.
Sec. 3.
As used in this act, "controlling board" means all boards having the care, management, or control over public school districts and public educational institutions other than a public school academy established under the revised school code, Act No. 451 of the Public Acts of 1976, being sections 380.1 to 380.1852 of the Michigan Compiled Laws.
History:
1937, Ex. Sess., Act 4, Eff. Sept. 1, 1937 ;-- CL 1948, 38.73 ;-- Am. 1993, Act 337, Imd. Eff. Dec. 31, 1993 ;-- Am. 1996, Act 282, Imd. Eff. June 17, 1996
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article I - Definitions. (38.71...38.75) › Section 38.74 - “Demote” Defined.

***** 38.74 THIS SECTION IS AMENDED EFFECTIVE JULY 1, 2024: See 38.74.amended *****
38.74 “Demote” defined.
Sec. 4.
The word "demote" means to suspend without pay for 15 or more consecutive days or reduce compensation for a particular school year by more than an amount equivalent to 30 days' compensation or to transfer to a position carrying a lower salary. However, demote does not include discontinuance of salary pursuant to section 3 of article IV, the discontinuance or reduction of performance-based compensation paid pursuant to section 1250 of the revised school code, 1976 PA 451, MCL 380.1250, or a reduction in personnel, including, but not limited to, a reduction in workweeks or workdays.
History:
1937, Ex. Sess., Act 4, Eff. Sept. 1, 1937 ;-- CL 1948, 38.74 ;-- Am. 1993, Act 60, Eff. Oct. 1, 1993 ;-- Am. 2005, Act 124, Eff. Jan. 1, 2006 ;-- Am. 2011, Act 100, Imd. Eff. July 19, 2011
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article I - Definitions. (38.71...38.75) › Section 38.74.amended - "Demote" Defined.

***** 38.74.amended THIS AMENDED SECTION IS EFFECTIVE JULY 1, 2024 *****
38.74.amended "Demote" defined.
Sec. 4.
The word "demote" means to suspend without pay for 15 or more consecutive days or reduce compensation for a particular school year by more than an amount equivalent to 30 days' compensation or to transfer to a position carrying a lower salary. However, demote does not include discontinuance of salary under section 3 of article IV or a reduction in personnel, including, but not limited to, a reduction in workweeks or workdays.
History:
1937, Ex. Sess., Act 4, Eff. Sept. 1, 1937 ;-- CL 1948, 38.74 ;-- Am. 1993, Act 60, Eff. Oct. 1, 1993 ;-- Am. 2005, Act 124, Eff. Jan. 1, 2006 ;-- Am. 2011, Act 100, Imd. Eff. July 19, 2011 ;-- Am. 2023, Act 225, Eff. July 1, 2024
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article I - Definitions. (38.71...38.75) › Section 38.75 - School Year; Definition.

38.75 School year; definition.
Sec. 5.
The "school year" shall be defined as the legal school year at the time and place where service was rendered.
History:
1937, Ex. Sess., Act 4, Eff. Sept. 1, 1937 ;-- CL 1948, 38.75
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article II - Probationary Period. (38.81...38.84) › Section 38.81 - Teachers' Probationary Period; Continuing Tenure.

38.81 Teachers' probationary period; continuing tenure.
Sec. 1.
(1) Subject to subsections (2) and (3) and section 3b of this article, a teacher is in a probationary period during his or her first 5 full school years of employment.
(2) Subject to section 3b of this article, a teacher under contract but not on continuing tenure as of the effective date of the 2011 amendatory act that amended this subsection is in a probationary period during his or her first 4 full school years of employment.
(3) A teacher on continuing tenure as of the effective date of the 2011 amendatory act that amended this subsection continues to be on continuing tenure even if the teacher has not served for at least 5 full school years of employment.
History:
1937, Ex. Sess., Act 4, Eff. Sept. 1, 1937 ;-- CL 1948, 38.81 ;-- Am. 1993, Act 59, Imd. Eff. June 11, 1993 ;-- Am. 2011, Act 101, Imd. Eff. July 19, 2011
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article II - Probationary Period. (38.81...38.84) › Section 38.82 - Probationary Period.

38.82 Probationary period.
Sec. 2.
A teacher shall not be required to serve more than 1 probationary period in any 1 school district or institution.
History:
1937, Ex. Sess., Act 4, Eff. Sept. 1, 1937 ;-- CL 1948, 38.82 ;-- Am. 1993, Act 59, Imd. Eff. June 11, 1993 ;-- Am. 2011, Act 101, Imd. Eff. July 19, 2011
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article II - Probationary Period. (38.81...38.84) › Section 38.82a - Probationary Teacher Rated as Effective or Highly Effective; Displacement.

***** 38.82a THIS SECTION IS AMENDED EFFECTIVE JULY 1, 2024: See 38.82a.amended *****
38.82a Probationary teacher rated as effective or highly effective; displacement.
Sec. 2a.
A probationary teacher who is rated as effective or highly effective on his or her most recent annual year-end performance evaluation under section 1249 of the revised school code, 1976 PA 451, MCL 380.1249, is not subject to being displaced by a teacher on continuing tenure solely because the other teacher has continuing tenure.
History:
Add. 2011, Act 101, Imd. Eff. July 19, 2011
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article II - Probationary Period. (38.81...38.84) › Section 38.82a.amended - Probationary Teacher Rated as Effective; Displacement.

***** 38.82a.amended THIS AMENDED SECTION IS EFFECTIVE JULY 1, 2024 *****
38.82a.amended Probationary teacher rated as effective; displacement.
Sec. 2a.
A probationary teacher who is rated as effective on the probationary teacher's most recent year-end performance evaluation under section 1249 of the revised school code, 1976 PA 451, MCL 380.1249, is not subject to displacement by a teacher on continuing tenure solely because the other teacher has continuing tenure.
History:
Add. 2011, Act 101, Imd. Eff. July 19, 2011 ;-- Am. 2023, Act 225, Eff. July 1, 2024
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article II - Probationary Period. (38.81...38.84) › Section 38.83 - Controlling Board; Statements of Performance and Notices of Dismissal; Issuance to Probationary Teachers.

38.83 Controlling board; statements of performance and notices of dismissal; issuance to probationary teachers.
Sec. 3.
(1) Before the end of each school year, the controlling board shall provide the probationary teacher with a definite written statement as to whether or not his or her work has been effective. Subject to subsection (2), a probationary teacher or teacher not on continuing contract shall be employed for the ensuing year unless notified in writing at least 15 days before the end of the school year that his or her services will be discontinued.
(2) A teacher who is in a probationary period may be dismissed from his or her employment by the controlling board at any time.
History:
1937, Ex. Sess., Act 4, Eff. Sept. 1, 1937 ;-- CL 1948, 38.83 ;-- Am. 1967, Act 216, Imd. Eff. July 10, 1967 ;-- Am. 2011, Act 101, Imd. Eff. July 19, 2011
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article II - Probationary Period. (38.81...38.84) › Section 38.83a - Teacher in Probationary Period; Individualized Development Plan; Performance Evaluation; Basis.

38.83a Teacher in probationary period; individualized development plan; performance evaluation; basis.
Sec. 3a.
The controlling board of a probationary teacher's employing school district shall ensure that the teacher is provided with an individualized development plan developed by appropriate administrative personnel in consultation with the individual teacher and that the teacher is provided with at least an annual year-end performance evaluation each year during the teacher's probationary period. The annual year-end performance evaluation shall be based on classroom observations and shall include at least an assessment of the teacher's progress in meeting the goals of his or her individualized development plan. The controlling board shall determine the format and number of the classroom observations in consultation with teachers and school administrators. A performance evaluation shall be conducted in accordance with section 1249 of the revised school code, 1976 PA 451, MCL 380.1249.
History:
Add. 1993, Act 59, Imd. Eff. June 11, 1993 ;-- Am. 2011, Act 101, Imd. Eff. July 19, 2011
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article II - Probationary Period. (38.81...38.84) › Section 38.83b - Successful Completion of Probationary Period; Conditions.

***** 38.83b THIS SECTION IS AMENDED EFFECTIVE JULY 1, 2024: See 38.83b.amended *****
38.83b Successful completion of probationary period; conditions.
Sec. 3b.
(1) Except as otherwise provided in subsection (2), a teacher shall not be considered to have successfully completed the probationary period unless the teacher has been rated as effective or highly effective on his or her 3 most recent annual year-end performance evaluations under section 1249 of the revised school code, 1976 PA 451, MCL 380.1249, and has completed at least 5 full school years of employment in a probationary period.
(2) If a teacher has been rated as highly effective on 3 consecutive annual year-end performance evaluations under section 1249 of the revised school code, 1976 PA 451, MCL 380.1249, and has completed at least 4 full school years of employment in a probationary period, the teacher shall be considered to have successfully completed the probationary period.
History:
Add. 2011, Act 101, Imd. Eff. July 19, 2011
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article II - Probationary Period. (38.81...38.84) › Section 38.83b.amended - Successful Completion of Probationary Period; Conditions.

***** 38.83b.amended THIS AMENDED SECTION IS EFFECTIVE JULY 1, 2024 *****
38.83b.amended Successful completion of probationary period; conditions.
Sec. 3b.
(1) Before July 1, 2024, and except as otherwise provided in subsection (2), a teacher is not considered to have successfully completed the probationary period unless the teacher has been rated as effective or highly effective on the teacher's 3 most recent year-end performance evaluations under section 1249 of the revised school code, 1976 PA 451, MCL 380.1249, and has completed at least 5 full school years of employment in a probationary period.
(2) Before July 1, 2024, if a teacher has been rated as highly effective on 3 consecutive year-end performance evaluations under section 1249 of the revised school code, 1976 PA 451, MCL 380.1249, and has completed at least 4 full school years of employment in a probationary period, the teacher is considered to have successfully completed the probationary period.
(3) Beginning July 1, 2024, if a teacher has been rated as effective on or after July 1, 2024, or highly effective before July 1, 2024, on 3 consecutive year-end performance evaluations under section 1249 of the revised school code, 1976 PA 451, MCL 380.1249, and has completed at least 4 full school years of employment in a probationary period, the teacher is considered to have successfully completed the probationary period.
History:
Add. 2011, Act 101, Imd. Eff. July 19, 2011 ;-- Am. 2023, Act 225, Eff. July 1, 2024
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article II - Probationary Period. (38.81...38.84) › Section 38.84 - Probationary Period; Portions of Act Inapplicable.

38.84 Probationary period; portions of act inapplicable.
Sec. 4.
Articles 4, 5 and 6 shall not apply to any teacher deemed to be in a period of probation.
History:
Add. 1963, Act 242, Eff. Sept. 6, 1963
Popular Name:
Teachers' Tenure Act
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 4 of 1937 (Ex. Sess.) - Teachers' Tenure (38.71 - 38.191) › Article III - Continuing Tenure. (38.91...38.93.amended) › Section 38.92 - Teacher on Continuing Tenure; Employment by Another Controlling Board.

38.92 Teacher on continuing tenure; employment by another controlling board.
Sec. 2.
If a teacher on continuing tenure is employed by another controlling board, the teacher is not subject to another probationary period of more than 2 years beginning with the date of employment, and may at the option of the controlling board be placed immediately on continuing tenure. A notice provided under section 3 of article 2 shall be given not later than 60 days before the completion of the probationary period. If a teacher on continuing tenure becomes an employee of another controlling board as a result of school district annexation, consolidation or other form of school district reorganization, the teacher shall be placed on continuing tenure within 30 days unless the controlling board, by a 2/3 vote on an individual basis, places the teacher on not more than 2 years' probation. However, if such a teacher is under contract but not on continuing tenure with the employing board as of the effective date of the amendatory act that added this sentence, the teacher is not subject to another probationary period of more than 1 year beginning with the date of employment.
History:
1937, Ex. Sess., Act 4, Eff. Sept. 1, 1937 ;-- CL 1948, 38.92 ;-- Am. 1967, Act 216, Imd. Eff. July 10, 1967 ;-- Am. 1993, Act 59, Imd. Eff. June 11, 1993
Popular Name:
Teachers' Tenure Act