reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 88 of 1961 - Reciprocal Retirement Act (38.1101 - 38.1106) › Section 38.1105 - Credited Service Generally.

38.1105 Credited service generally.
Sec. 5.
A member of a reciprocal retirement system who has 30 months or more of credited service acquired as a member of the system and who has attained the age but has not met the service requirements for age and service retirement shall be entitled to use his or her credited service in force previously acquired as a member of governmental unit retirement systems in meeting the service requirements of the system from which he or she retires. Beginning September 1, 2006, if the member has a break in governmental unit employment for a period longer than 20 years, his or her service rendered in the employ of the governmental units prior to his or her last break in service shall not be used in satisfying the service requirement for age and service retirement in the system from which he or she retires. Except as provided in section 6, credited service acquired in a governmental unit in which the member was previously employed shall not be used in determining the amount of his or her retirement allowance payable by the reciprocal retirement system from which he or she retires unless otherwise provided by the retirement system.
History:
1961, Act 88, Eff. Sept. 8, 1961 ;-- Am. 1965, Act 106, Imd. Eff. June 30, 1965 ;-- Am. 1990, Act 274, Imd. Eff. Dec. 3, 1990 ;-- Am. 2008, Act 502, Imd. Eff. Jan. 13, 2009
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 88 of 1961 - Reciprocal Retirement Act (38.1101 - 38.1106) › Section 38.1106 - Transfer of Credited Service; Agreement Between Preceding Reciprocal Unit and Succeeding Reciprocal Unit; Resolution; Financial Consideration; Actuarial Present Value of Retirement Allowance; Written Policy.

38.1106 Transfer of credited service; agreement between preceding reciprocal unit and succeeding reciprocal unit; resolution; financial consideration; actuarial present value of retirement allowance; written policy.
Sec. 6.
(1) A reciprocal unit, designated as the preceding reciprocal unit, may enter into an agreement with a reciprocal unit, designated as the succeeding reciprocal unit, to transfer credited service of a member who leaves the employ of the preceding reciprocal unit and enters the employ of the succeeding reciprocal unit. The agreement shall be by resolution of the governing body of each reciprocal unit. The resolution shall specify the amount of credited service being transferred from the preceding reciprocal unit to the member's credit in the succeeding reciprocal unit and the amount of financial consideration being transferred from the preceding reciprocal unit to the succeeding reciprocal unit. The financial consideration transferred under this section shall not be greater than the larger of the following:
(a) The accumulated contributions of the member whose credited service is being transferred.
(b) The actuarial present value of the retirement allowance payable by the preceding reciprocal unit under section 4 if the preceding reciprocal unit does not transfer the member's credited service under this section.
(2) A succeeding reciprocal unit, before passing a resolution described in subsection (1), shall determine the actuarial present value of the retirement allowance that will be payable to the member under the retirement plan of the succeeding reciprocal unit attributable to the credited service to be transferred under subsection (1).
(3) The actuarial present value of the retirement allowance payable by the preceding reciprocal unit under subsection (1) and by the succeeding reciprocal unit under subsection (2) shall be calculated using the interest rate and mortality tables specified by the Pension Benefit Guarantee Corporation for calculating the actuarial present value of immediate and deferred pensions under a terminated pension plan as provided in part 2619 of subchapter C of chapter XXVI of title 29 of the Code of Federal Regulations, 29 C.F.R. part 2619.
(4) Each reciprocal unit, by resolution of the governing body of the reciprocal unit, shall establish a written policy to implement the provisions of this section in order to provide uniform application of this section to all members of the reciprocal retirement system.
History:
Add. 1990, Act 274, Imd. Eff. Dec. 3, 1990
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1121-38.1131 - Repealed. 1982, Act 55, Imd. Eff. Apr. 6, 1982.

38.1121-38.1131 Repealed. 1982, Act 55, Imd. Eff. Apr. 6, 1982.
Compiler's Notes:
Prior to the repeal of MCL 38.1121 to 38.1131, MCL 38.1125a had expired by its own terms.
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1132 - Short Title; Meanings of Words and Phrases.

38.1132 Short title; meanings of words and phrases.
Sec. 12.
(1) This act shall be known and may be cited as the "public employee retirement system investment act".
(2) For the purposes of this act, the words and phrases defined in sections 12a to 12f have the meanings ascribed to them in those sections.
History:
Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982 ;-- Am. 1988, Act 127, Imd. Eff. May 24, 1988 ;-- Am. 1996, Act 485, Imd. Eff. Dec. 27, 1996
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1132a - Definitions; A.

38.1132a Definitions; A.
Sec. 12a.
"Assets", for the purpose of meeting asset limitations contained in this act, means the total of the cash and investments of a system valued at market.
History:
Add. 1996, Act 485, Imd. Eff. Dec. 27, 1996
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1132b - Definitions; D to G.

38.1132b Definitions; D to G.
Sec. 12b.
(1) "Defined contribution plan" means a defined contribution plan as defined in section 414(i) in the internal revenue code, 26 USC 414.
(2) "Derivative" means either of the following:
(a) A contract or convertible security that changes in value in concert with a related or underlying security, future, or other instrument or index; or obtains much of its value from price movements in a related or underlying security, future, or other instrument or index; or both.
(b) A contract or security, such as an option, forward, swap, warrant, or a debt instrument with 1 or more options, forwards, swaps, or warrants embedded in it or attached to it, the value of which contract or security is determined in whole or in part by the price of 1 or more underlying instruments or markets.
(3) "Equity interests" means limited partnership interests and other interests in which the liability of the investor is limited to the amount of the investment, but does not mean general partnership interests or other interests involving general liability of the investor.
(4) "Global security" means any of the following:
(a) A fixed income security issued by a government, a governmental agency, or a public or private company that is traded outside of the United States and may be issued in a currency other than the United States dollar.
(b) An equity position in a company traded on an exchange outside of the United States or a security that may be issued in a currency other than the United States dollar or an unregistered American depository receipt.
(c) An equity or fixed income derivative that derives its value from an investment described in subdivision (a) or (b) or a global security or bond index traded on an exchange outside of the United States.
History:
Add. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2000, Act 307, Imd. Eff. Oct. 16, 2000 ;-- Am. 2012, Act 347, Eff. Mar. 28, 2013
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1132c - Definitions; I to L.

38.1132c Definitions; I to L.
Sec. 12c.
(1) "Investment fiduciary" means a person other than a participant directing the investment of the assets of his or her individual account in a defined contribution plan who does any of the following:
(a) Exercises any discretionary authority or control in the investment of a system's assets. Investment fiduciary under this subdivision includes the state treasurer and his or her investment personnel for the systems described in section 13(4).
(b) Renders investment advice for a system for a fee or other direct or indirect compensation.
(2) "Invest" or "investment" means the utilization of money in the expectation of future returns in the form of income or capital gain. Investments initially purchased in accordance with this act that subsequently do not qualify for purchase for any reason shall be considered to continue to meet the requirements of this act. Investment includes a guarantee by an investment fiduciary but does not include, as a sole investment, a pledge of the system's assets as collateral to guarantee the repayment of obligations made by a third party to a borrower.
(3) "Investment grade" means graded in the top 4 major grades as determined by 2 national rating services.
(4) "Large sponsored system" means a system created and established by a city that is subject to a plan for adjustment and that meets 1 or more of the following conditions:
(a) The city has a population of more than 600,000.
(b) The system has discharged at least $1,000,000,000.00 of pension liabilities in bankruptcy.
History:
Add. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2000, Act 307, Imd. Eff. Oct. 16, 2000 ;-- Am. 2012, Act 347, Eff. Mar. 28, 2013 ;-- Am. 2014, Act 185, Imd. Eff. June 20, 2014
Compiler's Notes:
For transfer of powers and duties of state treasurer created under public employee retirement system investment act or authorizing statutes to Michigan investment board and transfer of powers and duties of investment advisory committee created under MCL 16.191 to Michigan investment board , see E.R.O. No. 2018-5, compiled at MCL 38.1176.
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1132d - Definitions; N to P.

38.1132d Definitions; N to P.
Sec. 12d.
(1) "National rating services" means Moody's investors service, inc.; Standard & Poor's ratings group; Fitch investors service inc.; Duff & Phelps credit rating corp.; or any other nationally recognized statistical rating organization as determined by the state treasurer.
(2) "Net earnings available for fixed charges" means net income after deducting operating and maintenance expenses, taxes other than federal and state income taxes, depreciation, and depletion, but excluding extraordinary expenses appearing in the regular financial statements of the system.
(3) "Obligations" means bonds, notes, collateral trust certificates, convertible bonds, debentures, equipment trust certificates, conditional sales agreements, guaranteed mortgage certificates, pass-through certificates, participation certificates, mortgages, trust deeds, general obligation bonds, revenue bonds, or other similar interest bearing instruments of debt. Obligations may be secured or unsecured and may be publicly offered or privately placed.
(4) "Party in interest" means, as it relates to a system, any of the following:
(a) An investment fiduciary, counsel, or employee of the system.
(b) A person providing services to the system.
(c) The political subdivision sponsoring the system.
(d) An organization, any of whose members are covered by the system.
(e) A spouse, ancestor, lineal descendant, or spouse of a lineal descendant of an individual described in subdivision (a) or (b).
(f) An entity controlled by an individual or organization described in subdivisions (a) to (e).
(5) "Plan for adjustment" means a plan for the adjustment of debts entered and approved by a federal bankruptcy court for a city that has established a large sponsored system.
(6) "Portfolio company" means an entity in which the investment fiduciary has invested or has considered investing system assets.
(7) "Private equity" means an asset class consisting of equity or debt securities in entities that are not publicly traded, that may include, but are not limited to, investments in leveraged buyouts, venture capital, growth capital, distressed or special situations, mezzanine capital, and secondary investments in equity or debt interests.
History:
Add. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2000, Act 307, Imd. Eff. Oct. 16, 2000 ;-- Am. 2008, Act 425, Imd. Eff. Jan. 6, 2009 ;-- Am. 2014, Act 545, Imd. Eff. Jan. 15, 2015
Compiler's Notes:
For transfer of powers and duties of state treasurer created under public employee retirement system investment act or authorizing statutes to Michigan investment board and transfer of powers and duties of investment advisory committee created under MCL 16.191 to Michigan investment board , see E.R.O. No. 2018-5, compiled at MCL 38.1176.
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1132e - Definitions; S.

38.1132e Definitions; S.
Sec. 12e.
(1) "Small business" means a corporation, partnership, sole proprietorship, or other entity which does not meet the specific requirements of investments permitted under this act.
(2) "Small business investment company" means an incorporated body or a limited partnership under section 301 of title III of the small business investment act of 1958, Public Law 85-699, 15 U.S.C. 681.
(3) "Soft dollar" means brokerage commissions that are used by the system to purchase goods or services.
(4) "Stock" means capital stock, common stock, preferred stock, American depository receipts, or any other evidence of residual ownership of a corporation.
(5) "System" means a public employee retirement system created and established by this state or any political subdivision of this state.
History:
Add. 1996, Act 485, Imd. Eff. Dec. 27, 1996
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1132f - Definitions; V.

38.1132f Definitions; V.
Sec. 12f.
"Venture capital firm" means a corporation, partnership, proprietorship, or other entity, the principal business of which is or will be the making of investments in small business, either directly or indirectly by investing in entities the principal business of which is or will be the making of investments in small businesses.
History:
Add. 1996, Act 485, Imd. Eff. Dec. 27, 1996
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1133a - “Macbride Principles” Defined; Duties of Investment Fiduciary; Effect of Unlawful Principle.

38.1133a “MacBride principles” defined; duties of investment fiduciary; effect of unlawful principle.
Sec. 13a.
(1) As used in this section, "MacBride principles" means those requirements for companies doing business in Northern Ireland designed to do all of the following:
(a) Increase the representation of individuals from underrepresented religious groups in the work force including managerial, supervisory, administrative, clerical, and technical jobs.
(b) Provide adequate security for the protection of minority employees both at the workplace and while traveling to and from the workplace.
(c) Ban provocative religious or political emblems from the workplace.
(d) Publicly advertise all employment openings and make special recruitment efforts to attract applicants from underrepresented religious groups.
(e) Provide that layoff, recall, and termination procedures shall not in practice favor particular religious groupings.
(f) Abolish job reservations, apprenticeship restrictions, and differential employment criteria, which discriminate on the basis of religion or ethnic origin.
(g) Develop training programs that will prepare substantial numbers of current minority employees for skilled jobs, including the expansion of existing programs and the creation of new programs to train, upgrade, and improve the skills of minority employees.
(h) Establish procedures to assess, identify, and actively recruit minority employees with potential for further advancement.
(i) Appoint senior management staff members to oversee the efforts to comply with these principles and the implementation of timetables to achieve these principles.
(2) With respect to investments qualified under section 14 or 20k, the investment fiduciary shall use all capital stock, common stock, preferred stock, American depository receipts, or any other evidence of residual ownership of a corporation in which it has investments to support either of the following:
(a) Shareholder resolutions and initiatives proposing the adoption of the MacBride principles for companies doing business in Northern Ireland.
(b) Shareholder resolutions and initiatives proposing to recognize efforts to end employment discrimination contained in any agreement between the government of the Republic of Ireland and the government of the United Kingdom, signed on November 15, 1985, which agreement is commonly referred to as the Anglo-Irish agreement.
(3) If a provision of the MacBride principles is found to be in violation of the law of the United Kingdom by a court in the United States or the United Kingdom, then the duties of the investment fiduciary prescribed by this section shall not apply to the extent that a shareholder resolution or initiative includes the provision that has been found unlawful.
History:
Add. 1988, Act 343, Imd. Eff. Oct. 19, 1988 ;-- Am. 2000, Act 307, Imd. Eff. Oct. 16, 2000
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1133b - Repealed. 1993, Act 214, Imd. Eff. Oct. 27, 1993.

38.1133b Repealed. 1993, Act 214, Imd. Eff. Oct. 27, 1993.
Compiler's Notes:
The repealed section pertained to encouragement or condonation of legally required discrimination; extension of deadlines for divestment of assets; developing and maintaining register of certain companies; and providing register to boards of retirement systems.
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1133f - Breach of Public Trust by Investment Fiduciary or Service Provider; "Service Provider" Defined.

38.1133f Breach of public trust by investment fiduciary or service provider; "service provider" defined.
Sec. 13f.
(1) An investment fiduciary or a service provider who is convicted of or who enters a nolo contendere plea accepted by a court for a felony or misdemeanor arising out of his or her service to a system is considered to have breached the public trust and shall reimburse the system for all costs, including legal defense fees, that were paid by the system. The system shall use reasonable efforts to collect any fees and costs recoverable under this subsection.
(2) As used in this section, "service provider" means that term as defined in section 13e.
History:
Add. 2012, Act 347, Eff. Mar. 28, 2013
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1134 - Investment in Stock or Global Security.

38.1134 Investment in stock or global security.
Sec. 14.
(1) An investment fiduciary shall not invest more than 70% of a system's assets in stock or the type of global security described in section 12b(4)(b). An investment fiduciary shall not invest in more than 5% of the outstanding stock of any 1 corporation, or invest more than 5% of a system's assets in the stock of any 1 corporation, unless otherwise provided in this act.
(2) An investment fiduciary may invest in stock or global securities under subsection (1) if it meets 1 of the following requirements:
(a) Is registered on a national securities exchange regulated under title I of the securities exchange act of 1934, 15 USC 78a to 78pp, or on an industry-recognized exchange outside the United States.
(b) Is on the national association of securities dealers automated quotation system or a successor to this system or is on an industry-recognized system outside the United States.
(c) Is issued pursuant to rule 144a under the securities act of 1933, 17 CFR 230.144a.
(3) Notwithstanding subsection (2), an investment fiduciary may designate an American depository receipt or the type of global security described in section 12b(4)(b) that satisfies the requirements of subsection (2) as an investment qualified under this section or as an investment in global securities qualified under section 20k.
History:
Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982 ;-- Am. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2000, Act 307, Imd. Eff. Oct. 16, 2000 ;-- Am. 2012, Act 347, Eff. Mar. 28, 2013
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1135 - Investment in Investment Companies.

38.1135 Investment in investment companies.
Sec. 15.
An investment fiduciary may invest in investment companies registered under the investment company act of 1940, 15 USC 80a-1 to 80a-64. The management company of the investment company shall have been in operation for at least 5 years and shall have assets under management of more than $500,000,000.00. An investment company may be established as a limited partnership, corporation, limited liability company, trust, or other organizational entity for which the liability of an investor does not exceed the amount of the investment under the laws of the United States or the applicable laws of the state, district, territory, or foreign country under which the investment company was established. An investment in an investment company shall be considered an investment in the underlying assets for all purposes under this act.
History:
Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982 ;-- Am. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2012, Act 347, Eff. Mar. 28, 2013
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1136 - Investment in Annuity Investment Contracts or Participations in Separate Accounts of Life Insurance Company; Investment in General Account of Life Insurer; Requirements.

38.1136 Investment in annuity investment contracts or participations in separate accounts of life insurance company; investment in general account of life insurer; requirements.
Sec. 16.
(1) An investment fiduciary may invest in annuity investment contracts or participations in separate real estate, mortgage, bond, stock, or other special investment accounts of a life insurance company authorized to do business in this state. An investment in such a separate account shall be considered an investment in stock under section 14 only to the extent that the separate account's assets include stock, and then only for the purpose of determining the 70% maximum investment limit under section 14. An investment in such a separate account shall also be considered an investment in real or personal property under section 19(1), but only to the extent that the separate account's assets include real or personal property, and then only for the purpose of determining the 5% maximum investment limit under section 19(1).
(2) An investment fiduciary may invest in the general account of a life insurer authorized to do business in this state under the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, but the total amount of assets of any 1 system invested in any 1 insurer shall not exceed 50% of the capital and surplus of the insurer.
(3) A life insurance company under this section shall have been in operation for at least 5 years and have assets under management of more than $500,000,000.00. The insurance company shall have a claims-paying ability rating no less than single A according to A.M. Best & company or AA- according to Duff & Phelps credit rating corp., and an overall company financial strength rating no less than Aa3 according to Moody's investors service, inc. or AA- according to Standard & Poor's ratings group.
History:
Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982 ;-- Am. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2000, Act 307, Imd. Eff. Oct. 16, 2000
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1138 - Investment in Real Estate or Mortgages on Certain Leased Real Property.

38.1138 Investment in real estate or mortgages on certain leased real property.
Sec. 18.
An investment fiduciary may invest in real estate or mortgages on real property leased or to be leased to the United States government, or to a state, territory, agency, authority, or public instrumentality of the United States, if the investment does not exceed 100% of the appraised value of the property subject to the mortgage and if all of the following requirements are met:
(a) The lease has an unexpired term exclusive of optional renewal terms equal to or greater than the remaining term of the investment.
(b) The lease provides for net rental payments equal to or greater than the periodic payments on the investment.
(c) The lease and the lease payments are assigned to the system.
History:
Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1139a - State Treasurer as Investment Fiduciary; Investments in Private Equity; Limitation; Investment Fiduciary Not State Treasurer; Limitation.

38.1139a State treasurer as investment fiduciary; investments in private equity; limitation; investment fiduciary not state treasurer; limitation.
Sec. 19a.
(1) If the investment fiduciary is the state treasurer, investments in private equity shall not be more than 30% of the system's total assets. If the investment fiduciary is not the state treasurer and the system has assets of $1,000,000,000.00 or more, investments in private equity shall not be more than 10% of the system's total assets. An investment fiduciary described in this subsection may invest not more than an additional 5% of the system's assets in Michigan private equity only.
(2) An investment fiduciary of a system that has assets of $250,000,000.00 or more but less than $1,000,000,000.00 shall not invest more than 5% of the system's assets in Michigan private equity. An investment fiduciary may otherwise invest in private equity under section 20d.
History:
Add. 2008, Act 425, Imd. Eff. Jan. 6, 2009 ;-- Am. 2012, Act 347, Eff. Mar. 28, 2013
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1140a - Investment in Debt, Warrant, or Equity Interest in Small Business, Small Business Investment Company, or Venture Capital Firm; Creation of Small Business Investment Companies or Venture Capital Firms to Invest in Small Businesses; Limitation.

38.1140a Investment in debt, warrant, or equity interest in small business, small business investment company, or venture capital firm; creation of small business investment companies or venture capital firms to invest in small businesses; limitation.
Sec. 20a.
(1) Except as provided in subsection (2), an investment fiduciary of a system having assets of more than $250,000,000.00 may invest not more than 2% of a system's assets in a debt, warrant, or equity interest in a small business having more than 1/2 of the small business's assets or employees within this state, or in a debt, warrant, or equity interest in a small business investment company or venture capital firm having its principal office or more than 1/2 of its assets within this state, or the system may create, own, hold, buy, sell, operate, manage, and direct 1 or more small business investment companies or venture capital firms designed to invest in small businesses having more than 1/2 of their assets or employees within this state. An investment fiduciary may also join with a group composed of other public employee retirement systems, pension systems subject to the employee retirement income security act of 1974, Public Law 93-406, 88 Stat. 829, financial institutions, corporations, or governmental agencies or instrumentalities to accomplish the purposes of this section. An investment in stock under this section shall be considered an investment in stock under section 14 only for the purpose of determining the 70% maximum investment limitation contained in section 14.
(2) If the investment fiduciary of a system is the state treasurer, investments described in subsection (1) may exceed 2% of the assets of the system, but shall not exceed 5% of the assets of the system.
History:
Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982 ;-- Am. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2000, Act 307, Imd. Eff. Oct. 16, 2000
Compiler's Notes:
For transfer of powers and duties of state treasurer created under public employee retirement system investment act or authorizing statutes to Michigan investment board and transfer of powers and duties of investment advisory committee created under MCL 16.191 to Michigan investment board , see E.R.O. No. 2018-5, compiled at MCL 38.1176.
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1140b - Deposits by Investment Fiduciary.

38.1140b Deposits by investment fiduciary.
Sec. 20b.
An investment fiduciary may make interest bearing deposits with the treasurer of the political subdivision sponsoring the system or with the state treasurer, either of whom may then manage and invest the deposits in a collective investment fund, common trust fund, or pooled fund that is established and maintained for investment of those assets by the treasurer of the political subdivision sponsoring the system or by the state treasurer in accordance with this act.
History:
Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982 ;-- Am. 1996, Act 485, Imd. Eff. Dec. 27, 1996
Compiler's Notes:
For transfer of powers and duties of state treasurer created under public employee retirement system investment act or authorizing statutes to Michigan investment board and transfer of powers and duties of investment advisory committee created under MCL 16.191 to Michigan investment board , see E.R.O. No. 2018-5, compiled at MCL 38.1176.
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1140d - Investments Not Qualified Under Act.

38.1140d Investments not qualified under act.
Sec. 20d.
(1) An investment fiduciary of a system having assets of less than $250,000,000.00 may invest not more than 15% of the system's assets in investments not otherwise qualified under this act, except as qualified in section 19a, whether the investments are similar or dissimilar to those specified in this act.
(2) An investment fiduciary of a system having assets of $250,000,000.00 or more but less than $1,000,000,000.00 may invest not more than 20% of the system's assets in investments described in subsection (1).
(3) An investment fiduciary of a system having assets of $1,000,000,000.00 or more may invest not more than 25% of the system's assets in investments described in subsection (1).
(4) An investment fiduciary of a system who is the state treasurer may invest not more than 30% of the system's assets in investments described in subsection (1).
(5) If an investment described in subsection (1) is subsequently determined to be permitted under another section of this act, then the investment shall no longer be included under this section.
(6) This section shall not be used to exceed a percentage of total assets limitation for an investment provided in any other section of this act.
History:
Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982 ;-- Am. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2000, Act 307, Imd. Eff. Oct. 16, 2000 ;-- Am. 2008, Act 425, Imd. Eff. Jan. 6, 2009 ;-- Am. 2012, Act 347, Eff. Mar. 28, 2013
Compiler's Notes:
For transfer of powers and duties of state treasurer created under public employee retirement system investment act or authorizing statutes to Michigan investment board and transfer of powers and duties of investment advisory committee created under MCL 16.191 to Michigan investment board , see E.R.O. No. 2018-5, compiled at MCL 38.1176.
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1140e - Loan of Securities by Investment Fiduciary.

38.1140e Loan of securities by investment fiduciary.
Sec. 20e.
(1) An investment fiduciary may loan bonds, stocks, or other securities if at the time the loan is executed, at least 102% of the full market value of the security loaned is secured by collateral of cash to be invested in 1 or more of the following:
(a) Securities graded in the top 4 major grades as determined by at least 1 national rating service, but not graded below the top 4 grades as determined by any of the national rating services, or determined by the investment fiduciary to be of comparable quality in the case of unrated securities.
(b) Repurchase agreements collateralized by securities graded in the top 4 major grades as determined by at least 1 national rating service, but not graded below the top 4 grades as determined by any of the national rating services, or determined by the investment fiduciary to be of comparable quality in the case of unrated securities.
(c) Irrevocable bank letters of credit.
(d) Securities issued or guaranteed by the United States government or an agency of the United States government.
(2) At all times during the term of a loan under subsection (1), the collateral shall be equal to not less than 100% of the full market value of the security loaned.
History:
Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982 ;-- Am. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2000, Act 307, Imd. Eff. Oct. 16, 2000
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1140f - Transferring and Holding Securities.

38.1140f Transferring and holding securities.
Sec. 20f.
An investment fiduciary may use 1 or more nominees to facilitate transfer of a system's securities and may hold the securities in safekeeping with the federal reserve system, a clearing corporation, or a custodian bank which is a member of the federal reserve system.
History:
Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1140g - Investment in Securities Exempt From Taxes.

38.1140g Investment in securities exempt from taxes.
Sec. 20g.
Notwithstanding any other provision of this act, investment in securities wholly or partially exempt from income or other taxes levied by the United States shall be made only at taxable-equivalent yields or returns available in the marketplace on otherwise comparable securities at the time the investment decision is made.
History:
Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1140i - Repealed. 2000, Act 307, Imd. Eff. Oct. 16, 2000.

38.1140i Repealed. 2000, Act 307, Imd. Eff. Oct. 16, 2000.
Compiler's Notes:
The repealed section pertained to guaranteed repayment of loans.
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1140j - Investment in Derivatives.

38.1140j Investment in derivatives.
Sec. 20j.
(1) Subject to qualification elsewhere in this act, an investment fiduciary may invest in any of the following:
(a) A derivative that hedges positions of a nonderivative component of a portfolio that clearly reduces a defined risk.
(b) A derivative that replicates the risk/return profile of an asset or asset class, provided the asset or asset class is permitted in other sections of this act.
(c) A derivative that rebalances the country or asset class exposure of a portfolio.
(d) A derivative in which the investment fiduciary has examined the price, yield, and duration characteristics in all market environments both at the time of investment and on an ongoing basis.
(e) A commingled or pooled investment fund that uses derivatives, if the fund's use of derivatives is consistent with the guidelines outlined in this section.
(f) Over-the-counter derivatives if, in the case of an over-the-counter security, a minimum of 2 competing bids or offers are obtained. All counter party risk in over-the-counter derivative transactions shall be examined at the time of investment and on an ongoing basis.
(2) The aggregate market value of the underlying security, future, or other instrument or index made under this section shall not exceed 15% of the assets of the system. For purposes of the asset limitation in this section only, "derivatives" does not include:
(a) Asset backed pools, mortgage backed pools, or collateralized mortgage obligations that are otherwise qualified under this act and are no more exposed to prepayment risk or interest rate risk than the underlying collateral including planned amortization classes and sequential-pay collateralized mortgage obligations.
(b) Convertible bonds, convertible preferred stock, rights or warrants to purchase stock or bonds or notes or partnership interests, floating rate notes, zero coupon securities, stripped principal securities, or stripped interest securities, which items are otherwise qualified under this act.
(c) Exchange-listed derivatives trading on a daily basis and settling in cash daily or having a limited and fully defined risk profile at an identified, fixed cost, including futures contracts and purchased options.
(d) Currency forwards trading on a daily basis and settling in cash daily or having a limited and fully defined risk profile at an identified, fixed cost.
(3) Notwithstanding any other provision of this act to the contrary, an investment fiduciary shall not invest in derivatives for the purpose of leveraging a portfolio or shorting securities as a sole investment.
History:
Add. 1996, Act 485, Imd. Eff. Dec. 27, 1996
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1140k - Investment in Global Securities; Prohibited Conduct.

38.1140k Investment in global securities; prohibited conduct.
Sec. 20k.
(1) Notwithstanding a percentage of total assets limitation for an investment provided in any other section of this act, an investment fiduciary who is the state treasurer or the investment fiduciary of a system that has assets of $2,000,000,000.00 or more may invest not more than 30% of a system's assets in global securities. An investment fiduciary of a system that has assets of less than $2,000,000,000.00 and who is not the state treasurer may invest not more than 20% of a system's assets in global securities. Except as otherwise provided in this act, an investment fiduciary shall not do any of the following:
(a) Invest in more than 5% of the outstanding global securities of any 1 issuer.
(b) Invest more than 5% of a system's assets in the global securities of any 1 issuer.
(2) Investments in global securities under this section shall be made only by investment fiduciaries described in section 13(11) who have demonstrated expertise in investments of that type.
History:
Add. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2012, Act 347, Eff. Mar. 28, 2013
Compiler's Notes:
For transfer of powers and duties of state treasurer created under public employee retirement system investment act or authorizing statutes to Michigan investment board and transfer of powers and duties of investment advisory committee created under MCL 16.191 to Michigan investment board , see E.R.O. No. 2018-5, compiled at MCL 38.1176.
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141) › Section 38.1140l - Financial or Proprietary Information.

38.1140l Financial or proprietary information.
Sec. 20l
(1) A record or portion of a record, material, or other data received, prepared, used, or retained by an investment fiduciary in connection with the investment of assets of a system that relates to financial or proprietary information pertaining to a portfolio company in real estate or alternative investments in which the investment fiduciary has invested or has considered an investment that is considered by the portfolio company and acknowledged by the investment fiduciary as confidential; or that relates to financial or proprietary information whether prepared by or for the investment fiduciary regarding loans and assets directly owned by the investment fiduciary and acknowledged by the investment fiduciary as confidential is not subject to the disclosure requirements of the freedom of information act, Act No. 442 of the Public Acts of 1976, being sections 15.231 to 15.246 of the Michigan Compiled Laws.
(2) A document to which the investment fiduciary is a party evidencing an investment is not considered financial or proprietary information that may be exempt from disclosure pursuant to subsection (1).
(3) As used in this section, "financial or proprietary information" means information that has not been publicly disseminated or that is unavailable from other sources, the release of which might cause the portfolio company or the investment fiduciary significant competitive harm. Financial or proprietary information includes but is not limited to financial performance data and projections, financial statements, list of coinvestors and their level of investment, product and market data, rent rolls, and leases.
History:
Add. 1996, Act 485, Imd. Eff. Dec. 27, 1996
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Repealed - Act 520 of 1980 - Council on Public Employee Retirement Systems (38.1141 - 38.1148)

COUNCIL ON PUBLIC EMPLOYEE RETIREMENT SYSTEMS
Act 520 of 1980
38.1141-38.1148 Expired. 1980, Act 520, Eff. Sept. 30, 1986;—Repealed, 1988, Act 394, Eff. Jan. 1, 1993.
Compiler's Notes:
Sec. 8 of Act 520 of 1980, being MCL 38.1148 of the Michigan Compiled Laws, provided that “This act shall expire September 30, 1986.” In OAG, 1987-1988, No. 6438 (May 21, 1987), the Attorney General ruled that because the title to Act 520 of 1980 gave “no notice of the repeal of the Act,” Sec. 8 “was enacted in violation of Const 1963, art 4, § 24, and is void.”
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 306 of 1976 - Deferred Compensation Plan (38.1151 - 38.1151) › Section 38.1151 - Deferred Compensation Plan; Administration and Investment.

38.1151 Deferred compensation plan; administration and investment.
Sec. 1.
(1) Until October 1, 1996, the department of civil service may implement and administer a deferred compensation plan that may include a fixed-income plan and a stock plan option. The plan, if implemented, shall be established by resolution by the state civil service commission. The resolution shall set forth the purpose, eligibility requirements, membership, qualifications, and administration of the plan.
(2) Beginning on October 1, 1996, the state treasurer is responsible for the administration and investment of the deferred compensation plan.
History:
1976, Act 306, Imd. Eff. Oct. 28, 1976 ;-- Am. 1996, Act 96, Imd. Eff. Feb. 28, 1996
Compiler's Notes:
For transfer of powers and duties set forth in Act. No. 306 of the Public Acts of 1976 to the state treasurer, see E.R.O. No. 1996-5, compiled at MCL 38.1171 of the Michigan Compiled Laws. For transfer of powers and duties of the department of civil service related to employee benefit programs from the department of civil service to the director of the department of management and budget, see E.R.O. No. 1996-5, compiled at MCL 38.1171 of the Michigan Compiled Laws.
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 325 of 1978 - Quality Recognition System (38.1161 - 38.1169) › Section 38.1161 - Definitions.

38.1161 Definitions.
Sec. 1.
As used in this act:
(a) "Board" or "recognition board" means the recognition board established in section 2.
(b) "Department" means the department of management and budget.
(c) "Director" means the director of the department or his or her designee.
(d) "Process improvement" is a recommended improvement that is concisely written and identifies a problem, situation, or opportunity for improvement, together with a recommendation for a remedy. The improvement must be implemented and bring about measurable organizational success for this state.
(e) "Retired state employee" means an individual who has retired from state service and is receiving a retirement benefit from either the defined benefits or defined contributions retirement plans sponsored by this state.
(f) "State employee" means a classified member of the state civil service or an unclassified employee of the executive, legislative, or judicial branch of state government.
(g) "Value added behavior" means a positive contribution by a person that advances the implementation of a process improvement or otherwise assists in the advancement of overall organizational success.
History:
1978, Act 325, Imd. Eff. July 11, 1978 ;-- Am. 1998, Act 119, Eff. July 1, 1998
Compiler's Notes:
For transfer of powers and duties of the department of civil service related to the suggestion awards program from the department of civil service to the director of the department of management and budget, see E.R.O. No. 1996-5, compiled at MCL 38.1171 of the Michigan Compiled Laws.For transfer of powers and duties of office of state employer and department of management and budget related to administration of state employee benefit programs and quality recognition system to department of civil service, see E.R.O. No. 2002-9, compiled at MCL 38.1172 of the Michigan Compiled Laws.