reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2656 - “Qualified Participant,”“refund Beneficiary,”“salary,” and “State Treasurer” Defined.

38.2656 “Qualified participant,”“refund beneficiary,”“salary,” and “state treasurer” defined.
Sec. 706.
(1) "Qualified participant" means an individual who is a participant of Tier 2 and who meets 1 of the following requirements:
(a) An individual who first becomes a judge or state official on or after March 31, 1997, and who before March 31, 1997 would have been eligible to be a member of Tier 1.
(b) An individual who elects to terminate membership in Tier 1 and who elects to participate in Tier 2 in the manner prescribed in section 701 or 701a.
(2) "Refund beneficiary" means an individual nominated by a qualified participant or a former qualified participant under section 717 to receive a distribution of the participant's accumulated balance in the manner prescribed in section 718.
(3) "Salary" means 1 of the following:
(a) For an individual described in subsection (1)(a), 100% of his or her salary that is paid both directly and indirectly by this state for the position he or she holds.
(b) For an individual described in subsection (1)(b), the salary that he or she elects or is considered to have elected under section 701b.
(4) "State treasurer" means the treasurer of this state.
History:
Add. 1996, Act 523, Eff. Mar. 31, 1997 ;-- Am. 1999, Act 215, Eff. May 30, 2000
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2657 - Administration of Tier 2 by State Treasurer.

38.2657 Administration of Tier 2 by state treasurer.
Sec. 707.
(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 523, Eff. Mar. 31, 1997
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2658 - Hearing.

38.2658 Hearing.
Sec. 708.
(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 24.221 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 523, Eff. Mar. 31, 1997
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2659 - Direction of Investment by Qualified Participant, Former Qualified Participant, and Refund Beneficiary.

38.2659 Direction of investment by qualified participant, former qualified participant, and refund beneficiary.
Sec. 709.
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 523, Eff. Mar. 31, 1997
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2660 - Administrative Expenses.

38.2660 Administrative expenses.
Sec. 710.
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 523, Eff. Mar. 31, 1997
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2661 - Participation in Other Retirement Benefits Plan; Prohibition.

38.2661 Participation in other retirement benefits plan; prohibition.
Sec. 711.
(1) A qualified participant shall not participate in any other public sector retirement benefits plan for simultaneous service rendered to the same public sector employer. This subsection does not apply to a qualified participant who makes the election under section 701b(1)(b) for that portion of his or her compensation that is not considered salary for the purposes of Tier 2. Except as otherwise provided in this act, this section does not do any of the following:
(a) Prohibit a qualified participant from participating in a retirement plan established under the internal revenue code by this state or other public sector employer.
(b) Impair any vested right to a retirement benefit, based upon service as a judge, accrued under such a plan as of the day before he or she becomes a qualified participant in Tier 2.
(c) Impair a qualified participant's right to receive health care benefits or other insurance benefits from a reporting unit.
(2) A qualified participant consents as a condition of participation in Tier 2 that he or she shall not receive a retirement allowance or other benefit from any other public sector retirement benefits plan while holding the position that qualifies him or her for participation in Tier 2 and the other plan. A qualified participant who receives a retirement allowance in violation of this subsection forfeits his or her right to employer contributions under section 714. The employer of a qualified participant who violates this subsection shall immediately suspend employer contributions under section 714. A qualified participant who is a contributing member in a local public sector retirement benefits plan on the day before he or she becomes a qualified participant in Tier 2 and who does not have a vested right to a retirement benefit under that plan on that date may withdraw the contributions made by that participant to the local plan without violating this subsection. This subsection does not apply to a former qualified participant.
(3) Within 30 days after the request of a qualified participant, a reporting unit shall disclose to the qualified participant the effect this section or an election under section 701 or 701a, if made, will have on the member's right to health care benefits as a retirant or a vested right to a retirement benefit for service as a judge provided by that plan.
History:
Add. 1996, Act 523, Eff. Mar. 31, 1997 ;-- Am. 1999, Act 215, Eff. May 30, 2000
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2662 - Judge or State Official; Election Not to Participate or to Discontinue Participation in Tier 2.

38.2662 Judge or state official; election not to participate or to discontinue participation in Tier 2.
Sec. 712.
An individual who first becomes a judge or state official 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 salary under section 714 for the individual who makes either election.
History:
Add. 1996, Act 523, Eff. Mar. 31, 1997
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2663 - Election to Terminate Membership in Tier 1; Credit or Charge to Tier 2 Account.

38.2663 Election to terminate membership in Tier 1; credit or charge to Tier 2 account.
Sec. 713.
(1) The state treasurer shall promptly credit the Tier 2 account of a qualified participant who makes an election under section 701 or 701a to terminate membership in Tier 1 with any amount transferred from Tier 1 pursuant to section 702 or 702a, as applicable.
(2) Not later than 30 days after receipt of a recomputed amount under section 702(2) or (4), the state treasurer shall charge the qualified participant's Tier 2 account for any amount of excess transfers under section 702(1) or (3) and transfer that amount to the appropriate fund in Tier 1. The state treasurer may determine which investment choice or choices within a qualified participant's Tier 2 account will be used for this purpose.
History:
Add. 1996, Act 523, Eff. Mar. 31, 1997 ;-- Am. 1999, Act 215, Eff. May 30, 2000
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2664 - Contributions by Employer and Participant.

38.2664 Contributions by employer and participant.
Sec. 714.
(1) This section is subject to the vesting requirements of section 715.
(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 salary.
(3) A qualified participant may periodically elect to contribute up to 3% of his or her salary 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.
(5) A qualified participant who makes a written election under section 701a may elect to contribute up to 6% of his or her salary to his or her Tier 2 account. In lieu of employer contributions under subsection (3), 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. This subsection applies for a period as determined by the department that equals the time in which a Tier 1 member was not able to make contributions to the Tier 2 plan because of the temporary restraining order issued in the case of Michigan judges assn v Treasurer of the State of Michigan, case no. 98-DT-72771-CV (Ed Mi).
(6) Beginning January 1, 2002, each qualified participant who is a plan 1 member or a plan 2 member, upon taking office and so long as he or she remains in office, shall contribute 2.0% of the qualified participant's compensation to the retirement system. The retirement system shall deposit the contribution under this subsection into the reserve for health benefits for hospital and medical-surgical and sick care benefits as provided in section 719.
History:
Add. 1996, Act 523, Eff. Mar. 31, 1997 ;-- Am. 1999, Act 215, Eff. May 30, 2000 ;-- Am. 2002, Act 95, Imd. Eff. Mar. 27, 2002
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2665 - Vesting Requirements.

38.2665 Vesting requirements.
Sec. 715.
(1) A qualified participant is immediately 100% vested in his or her contributions made to Tier 2. 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 vested in the health insurance coverage provided in section 719 if the qualified participant meets 1 of the following requirements:
(a) The qualified participant has completed 4 years of service as a qualified participant and was not a member, deferred vested member, or former nonvested member of Tier 1.
(b) The qualified participant was a member, deferred vested member, or former nonvested member of Tier 1 who made an election to participate in Tier 2 pursuant to section 701 or 701a, 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 509.
History:
Add. 1996, Act 523, Eff. Mar. 31, 1997 ;-- Am. 1998, Act 66, Imd. Eff. Apr. 30, 1998 ;-- Am. 1999, Act 215, Eff. May 30, 2000
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2666 - Participation in Tier 2; Crediting Years of Service Accrued Under Tier 1.

38.2666 Participation in Tier 2; crediting years of service accrued under Tier 1.
Sec. 716.
A qualified participant who was a member, deferred vested member, or former nonvested member of Tier 1 who makes an election to participate in Tier 2 pursuant to section 701 or 701a, 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 715.
History:
Add. 1996, Act 523, Eff. Mar. 31, 1997 ;-- Am. 1998, Act 66, Imd. Eff. Apr. 30, 1998 ;-- Am. 1999, Act 215, Eff. May 30, 2000
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2667 - Refund Beneficiary.

38.2667 Refund beneficiary.
Sec. 717.
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 523, Eff. Mar. 31, 1997
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2668 - Methods of Distribution.

38.2668 Methods of distribution.
Sec. 718.
(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 523, Eff. Mar. 31, 1997
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 234 of 1992 - The Judges Retirement Act of 1992 (38.2101 - 38.2670) › Article VII - (38.2651...38.2670) › Section 38.2670 - Distributions; Exemption From Tax; Subject to Taxation Beginning January 1, 2012; Right of Setoff to Recover Overpayments; Satisfaction of Claims Arising From Embezzlement or Fraud; Correction of Errors.

38.2670 Distributions; exemption from tax; subject to taxation beginning January 1, 2012; right of setoff to recover overpayments; satisfaction of claims arising from embezzlement or fraud; correction of errors.
Sec. 720.
(1) Except as otherwise provided in this section, distributions under Tier 1 or Tier 2 from employer contributions and earnings on those employer contributions, and distributions under Tier 1 or Tier 2 from employee contributions and earnings on those employee contributions, are exempt from any state, county, municipal, or other local tax.
(2) Beginning January 1, 2012, distributions under Tier 1 or Tier 2 from employer contributions and earnings on those employer contributions, and distributions under Tier 1 or Tier 2 from employee contributions and earnings on those employee contributions, are subject to state tax.
(3) 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.
(4) 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 523, Eff. Mar. 31, 1997 ;-- Am. 2002, Act 95, Imd. Eff. Mar. 27, 2002 ;-- Am. 2011, Act 45, Imd. Eff. May 25, 2011
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 350 of 1994 - Public Employee Retirement Benefits Forfeiture Act (38.2701 - 38.2705) › Section 38.2701 - Short Title.

38.2701 Short title.
Sec. 1.
This act shall be known and may be cited as the "public employee retirement benefits forfeiture act".
History:
1994, Act 350, Eff. Mar. 30, 1995
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 350 of 1994 - Public Employee Retirement Benefits Forfeiture Act (38.2701 - 38.2705) › Section 38.2702 - Definitions.

38.2702 Definitions.
Sec. 2.
As used in this act:
(a) "Felony arising out of his or her service as a public employee" means 1 or more of the following:
(i) A felony resulting from the misuse of public funds.
(ii) A felony resulting from the receipt of a bribe or other financial benefit in that individual's capacity as a public employee.
(b) "Member" means a member, vested former member, deferred member, or participant of a retirement system.
(c) "Retirant" means an individual who has retired with a retirement benefit payable from a retirement system.
(d) "Retirement benefit" means an annuity, a retirement allowance, a pension, a benefit from employer contributions to a defined contribution plan, an optional benefit, a postretirement benefit, and any other right accrued or accruing to a member under a retirement system. Retirement benefit does not include health benefits provided to a retirant or his or her beneficiaries by a retirement system.
(e) "Retirement system" means a public employee retirement system established by this state or a political subdivision of this state.
History:
1994, Act 350, Eff. Mar. 30, 1995 ;-- Am. 1996, Act 467, Imd. Eff. Dec. 26, 1996 ;-- Am. 2017, Act 43, Eff. Sept. 5, 2017
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 350 of 1994 - Public Employee Retirement Benefits Forfeiture Act (38.2701 - 38.2705) › Section 38.2703 - Forfeiture of Retirement Rights.

38.2703 Forfeiture of retirement rights.
Sec. 3.
A member or retirant who, before the effective date of the amendatory act that added section 4a, is convicted of or enters a nolo contendere plea accepted by a court for a felony arising out of his or her service as a public employee is considered to have breached the public trust and may have his or her rights to an otherwise vested retirement benefit and all accumulated employer contributions, including earnings on the employer contributions, standing to that individual's credit in the retirement system forfeited as provided in this act. A member or retirant who, on or after the effective date of the amendatory act that added section 4a, is convicted of or enters a nolo contendere plea accepted by a court for a felony arising out of his or her service as a public employee is considered to have breached the public trust and must have his or her rights to an otherwise vested retirement benefit and all accumulated employer contributions, including earnings on the employer contributions, standing to that individual's credit in the retirement system forfeited as provided in this act. This act applies only to the retirement system of which the individual was a member or retirant at the time the felony was committed and only to the retirement system established by the entity affected by the felony.
History:
1994, Act 350, Eff. Mar. 30, 1995 ;-- Am. 2017, Act 43, Eff. Sept. 5, 2017
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 350 of 1994 - Public Employee Retirement Benefits Forfeiture Act (38.2701 - 38.2705) › Section 38.2704 - Court; Forfeiture Order; Contents; Delivery to Retirement System.

38.2704 Court; forfeiture order; contents; delivery to retirement system.
Sec. 4.
(1) If a member or retirant, before the effective date of the amendatory act that added section 4a, is convicted of or enters a nolo contendere plea accepted by the court for a felony arising out of his or her service as a public employee, the court may order forfeiture as provided in this section. If a member or retirant, on or after the effective date of the amendatory act that added section 4a, is convicted of or enters a nolo contendere plea accepted by the court for a felony arising out of his or her service as a public employee, the court must order forfeiture as provided in this section. If a court orders forfeiture under this section, the court shall determine the extent to which a forfeiture under this act affects the vested status of the member or retirant under the terms of the retirement system. An order under this section must contain all of the following, as applicable:
(a) The portion of the member's or retirant's retirement benefit under a retirement system established by that individual's employer at the time the act or acts that resulted in the felony were committed that accrued to the member or retirant on or after the date the first act that resulted in the felony was committed is forfeited.
(b) The member's or retirant's accumulated contributions standing to that individual's credit in the individual account established for that purpose in the retirement system must be refunded to the member or retirant.
(c) Except for a retirement benefit that is a benefit from employer contributions to a defined contribution plan forfeited under subdivision (a), the retirement system shall pay to an individual, if any, who would otherwise be a beneficiary of the member or retirant whose retirement benefit is being forfeited under this act an actuarially equivalent monthly retirement allowance at the age the member or retirant would have become eligible for unreduced retirement benefits under that retirement system.
(d) The retirement system shall provide hospitalization and medical coverage insurance to the member or retirant whose retirement benefit is being forfeited under this act and to his or her beneficiaries in the same manner and under the same restrictions as is provided to other retirants and beneficiaries of that retirement system.
(2) If a court enters an order described in subsection (1), the clerk of the court shall deliver the order to the retirement system.
History:
1994, Act 350, Eff. Mar. 30, 1995 ;-- Am. 1996, Act 467, Imd. Eff. Dec. 26, 1996 ;-- Am. 2017, Act 43, Eff. Sept. 5, 2017
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 350 of 1994 - Public Employee Retirement Benefits Forfeiture Act (38.2701 - 38.2705) › Section 38.2704a - Freezing of Retirement Benefit; Court Order; Delivery to Retirement System; "Prosecuting Agency" Defined.

38.2704a Freezing of retirement benefit; court order; delivery to retirement system; "prosecuting agency" defined.
Sec. 4a.
(1) A retirement benefit subject to forfeiture under this act may be frozen pursuant to a freezing order issued by the court on a showing of probable cause that the retirement benefit is subject to forfeiture.
(2) On an ex parte application by the prosecuting agency, the court may determine ex parte whether there is probable cause to believe that a member's or retirant's retirement benefit is subject to forfeiture under this act and that notice to the member or retirant before a freezing of the retirement benefit would cause the loss of the retirement benefit subject to forfeiture under this act. If the court finds that there is probable cause to believe that the retirement benefit is subject to forfeiture and to believe that prior notice would cause loss of the retirement benefit, the court shall issue a freezing order freezing the retirement benefit.
(3) If a court enters a freezing order under this section, the clerk of the court shall deliver the freezing order to the retirement system.
(4) As used in this section, "prosecuting agency" means the attorney general of this state, or his or her designee, or the prosecuting attorney of a county, or his or her designee.
History:
Add. 2017, Act 43, Eff. Sept. 5, 2017
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 350 of 1994 - Public Employee Retirement Benefits Forfeiture Act (38.2701 - 38.2705) › Section 38.2705 - Retirement System; Compliance With Court Order.

38.2705 Retirement system; compliance with court order.
Sec. 5.
(1) The retirement system shall comply with an order of the court described in section 4 or 4a. The retirement system shall not pay to a member or retirant whose retirement benefit is forfeited or frozen under this act any retirement benefits on or after the day the governing body of the retirement system receives the order of the court under section 4 or 4a.
(2) A retirement system shall comply with any subsequent orders of a court based on an appeal of an order previously submitted to the retirement system under this act.
(3) A retirement system that complies with a court order under this act is released and discharged from any liability pertaining to retirement benefits arising on account of the former member's or retirant's service to the employer on receipt of the order of the court under section 4.
History:
1994, Act 350, Eff. Mar. 30, 1995 ;-- Am. 1996, Act 467, Imd. Eff. Dec. 26, 1996 ;-- Am. 2017, Act 43, Eff. Sept. 5, 2017
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2731 - Short Title; Meanings of Words and Phrases.

38.2731 Short title; meanings of words and phrases.
Sec. 1.
(1) This act shall be known and may be cited as the "public employee retirement health care funding act".
(2) For purposes of this act, the words and phrases defined in sections 2 to 2b have the meanings ascribed to them in those sections.
History:
2010, Act 77, Imd. Eff. May 19, 2010 ;-- Am. 2011, Act 265, Imd. Eff. Dec. 15, 2011
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2732 - Definitions; D to H.

38.2732 Definitions; D to H.
Sec. 2.
(1) "Department" means the department of technology, management, and budget.
(2) "Employer contributions" means the amount transferred by an employer to a funding account or a health reimbursement account.
(3) "Funding account" means an account created pursuant to section 3(6) for the deposit of funds and payment of retirement health care benefits under the applicable retirement act.
(4) "Funding account dependent" means 1 or more of the following:
(a) A dependent as that term is used in section 20d of the state employees' retirement act, 1943 PA 240, MCL 38.20d, or a "health benefit dependent" as that term is defined in section 54 of the state employees' retirement act, 1943 PA 240, MCL 38.54, whichever is applicable.
(b) A health insurance dependent as that term is defined in section 91 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1391.
(c) A retirement allowance beneficiary as that term is defined in section 109 of the judges retirement act of 1992, 1992 PA 234, MCL 38.2109, or a health benefit dependent as that term is defined in section 705 of the judges retirement act of 1992, 1992 PA 234, MCL 38.2655, whichever is applicable.
(d) A survivor as that term is defined in section 13a of the Michigan legislative retirement system act, 1957 PA 261, MCL 38.1013a, a beneficiary of a deceased retirant as that term is used in section 50b of the Michigan legislative retirement system act, 1957 PA 261, MCL 38.1050b, or a health benefit dependent as that term is defined in section 65 of the Michigan legislative retirement system act, 1957 PA 261, MCL 38.1065, whichever is applicable.
(e) A retirement allowance beneficiary as that term is defined in section 4 of the state police retirement act of 1986, 1986 PA 182, MCL 38.1604, or a dependent as that term is used in section 42 of the state police retirement act of 1986, 1986 PA 182, MCL 38.1642, whichever is applicable.
(5) "Health reimbursement account" means an employer-sponsored individual account established within the irrevocable trust and administered by the trustees into which a member and his or her employer contribute money to be used for the reimbursement of medical expenses.
(6) "Health reimbursement account dependent" means a past member's legal spouse and the past member's unmarried children who are considered dependent under section 152 of the internal revenue code, 26 USC 152, determined without regard to the special exclusion under section 152(b)(1) of the internal revenue code, 26 USC 152, or the earnings limit under section 152(d)(1)(B) of the internal revenue code, 26 USC 152.
History:
2010, Act 77, Imd. Eff. May 19, 2010 ;-- Am. 2011, Act 265, Imd. Eff. Dec. 15, 2011
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2732a - Definitions; M to P.

38.2732a Definitions; M to P.
Sec. 2a.
(1) "Mandatory contributions" means mandatory amounts contributed by a participating member, which amounts, to the extent permitted by applicable law, are treated as a salary increase that has been foregone by the participating member or a permanent reduction in a participating member's compensation, with such amounts being contributed by the employer to each participating member's health reimbursement account. Mandatory contributions include other amounts established by the employer that may be treated as picked up by the employer to the fullest extent permitted by the internal revenue code, but do not include any contributions made only by the employer without an impact on the salary of the participating member.
(2) "Medical expense" means an expense incurred at the time a past member or his or her health reimbursement account dependent is furnished the medical care or service. To be considered a medical expense under this act, the expense shall meet all of the following conditions:
(a) Is a medical expense that would otherwise qualify for a deduction under section 213(d) of the internal revenue code, 26 USC 213, irrespective of the income threshold set forth in section 213(a) of the internal revenue code, 26 USC 213.
(b) Has not been and will not be reimbursed by any other source.
(c) Was incurred by a past member or his or her health reimbursement account dependent after the past member became entitled to receive reimbursements for medical expenses under this act.
(d) Is properly and timely substantiated by the individual claiming the expense in a manner established by the department.
(3) "Member" means a person who is a member, former member, deferred member, qualified participant, or former qualified participant as determined under the applicable retirement act.
(4) "Participating member" means a member who is required to make mandatory contributions by the applicable retirement act to his or her health reimbursement account.
(5) "Past member" means a former member who has retired with retirement health care benefits payable by a retirement system or a former qualified participant who has terminated employment and has an amount within his or her health reimbursement account.
History:
Add. 2011, Act 265, Imd. Eff. Dec. 15, 2011
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2732b - Definitions; R to V.

38.2732b Definitions; R to V.
Sec. 2b.
(1) "Retirement act" means 1 or more of the following:
(a) The state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69.
(b) The public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.
(c) The judges retirement act of 1992, 1992 PA 234, MCL 38.2101 to 38.2670.
(d) The state police retirement act of 1986, 1986 PA 182, MCL 38.1601 to 38.1648.
(e) The Michigan legislative retirement system act, 1957 PA 261, MCL 38.1001 to 38.1080.
(2) "Retirement health care benefits" means expenses for medical, dental, and vision to be paid for past members or their funding account dependents under the applicable retirement act.
(3) "Retirement system" means a retirement system established under a retirement act.
(4) "Trust" means an irrevocable trust created under section 3(1).
(5) "Trustee" means a member of a retirement system board.
(6) "Voluntary contributions" means voluntary amounts contributed by a member or participating member into a health reimbursement account. However, to the extent required by applicable law, voluntary amounts shall not be contributed through a salary reduction election under a cafeteria plan pursuant to section 125 of the internal revenue code, 26 USC 125.
History:
Add. 2011, Act 265, Imd. Eff. Dec. 15, 2011
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2734 - Assets as Irrevocable.

38.2734 Assets as irrevocable.
Sec. 4.
(1) Except as otherwise provided in this section and sections 8 and 17, assets contributed to the irrevocable trust are irrevocable and may not be refused, refunded, or returned to the employer or employee making the contribution.
(2) To the extent permitted under state and federal law, voluntary contributions to a health reimbursement account and any investment income on those amounts may be distributed to a deceased member's or past member's beneficiaries or estate if those amounts exist in the deceased member's or past member's health reimbursement account and all eligible medical expenses have been reimbursed for the deceased member or past member and for all of his or her health reimbursement account dependents.
History:
2010, Act 77, Imd. Eff. May 19, 2010 ;-- Am. 2011, Act 265, Imd. Eff. Dec. 15, 2011
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2735 - Assets; Use; Limitation.

38.2735 Assets; use; limitation.
Sec. 5.
The assets of the irrevocable trust are to be used solely to perform this essential function of state government. The trust shall only provide retirement health care benefits as provided under this act and pay fees and expenses for the administrative costs in carrying out this essential governmental function.
History:
2010, Act 77, Imd. Eff. May 19, 2010
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2736 - Assets Not Subject to Certain Processes of Law.

38.2736 Assets not subject to certain processes of law.
Sec. 6.
The assets of the irrevocable trust and the ability of a member or past member of a retirement system to receive retirement health care benefits shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or other process of law and shall be unassignable.
History:
2010, Act 77, Imd. Eff. May 19, 2010
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2737 - Assets; Diversion for Other Purposes Prohibited.

38.2737 Assets; diversion for other purposes prohibited.
Sec. 7.
The assets of the irrevocable trust shall be used exclusively for the benefit of past members and their funding account dependents and shall not be diverted for a purpose other than the payment of retirement health care benefits and the administrative costs of providing such benefits.
History:
2010, Act 77, Imd. Eff. May 19, 2010
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2738 - Remaining Trust Assets; Dissolution; Distribution; Remaining Health Reimbursement Account Assets.

38.2738 Remaining trust assets; dissolution; distribution; remaining health reimbursement account assets.
Sec. 8.
(1) Any assets remaining in the funding account after all payments for eligible retirement health care benefits have been paid and all other liabilities of the trust have been satisfied shall be distributed to this state or other employers within the applicable retirement system so long as the employers are organizations the income of which is excluded under section 115(1) of the internal revenue code, 26 USC 115.
(2) Upon dissolution of the irrevocable trust, any assets remaining after the payment of debts and the satisfaction of liabilities are to be distributed to 1 or more states, political subdivisions of states, the District of Columbia, or other organizations the income of which is excluded under section 115(1) of the internal revenue code, 26 USC 115.
(3) Except as otherwise provided in section 4(2), any assets remaining in a health reimbursement account after all reimbursements for medical expenses for the past member and any health reimbursement account dependents of the past member have been paid shall be distributed to the funding account within the irrevocable trust.
History:
2010, Act 77, Imd. Eff. May 19, 2010 ;-- Am. 2011, Act 265, Imd. Eff. Dec. 15, 2011
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2739 - Written Trust Agreement; Contents.

38.2739 Written trust agreement; contents.
Sec. 9.
The written trust agreement for each retirement system shall contain all of the following provisions consistent with this act:
(a) Recitals describing the creation and purpose of the trust.
(b) Language reflecting the requirements of sections 4 through 7.
(c) Sections outlining the management and operation of the trust.
(d) A description of the various accounts that carry out the functions of the trust.
(e) Provisions setting forth the powers and duties of the trustees.
History:
2010, Act 77, Imd. Eff. May 19, 2010
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2740 - Retirement Health Care Benefits; Prefunding; Credit to Funding Account; Contribution or Credit to Health Reimbursement Account.

38.2740 Retirement health care benefits; prefunding; credit to funding account; contribution or credit to health reimbursement account.
Sec. 10.
(1) This state, an employer of a member within a retirement system, a member, or any other person may contribute amounts to a funding account within an applicable trust for the prefunding of retirement health care benefits.
(2) If a funding account contribution is made to the applicable trust, the contribution shall promptly be credited to the funding account within the applicable trust.
(3) Trustees shall credit the applicable funding account with the appropriate investment earnings on those assets.
(4) A member shall contribute an amount to the funding account as required by the applicable retirement act.
(5) A participating member shall contribute an amount to his or her health reimbursement account as required by the applicable retirement act.
(6) The employer of a member or participating member shall contribute or credit to the member's or participating member's health reimbursement account an amount as required by the applicable retirement act.
(7) A member or participating member may make voluntary contributions to his or her health reimbursement account in a whole percentage ranging from 1% to 5% of the member's or participating member's compensation, subject to any limit provided under state or federal law. This subsection does not apply to members of a retirement system until the retirement system has determined that voluntary contributions are permitted by law and a procedure has been implemented for the contributions.
(8) The employer of a member or participating member may contribute or credit an amount to the member's or participating member's health reimbursement account as set forth in the applicable retirement act. This subsection does not apply to members of a retirement system until the applicable retirement system has determined that voluntary contributions are permitted by law and a procedure has been implemented for the contributions.
(9) When a participating member makes a mandatory contribution as a result of a provision of the applicable retirement act, the mandatory contribution, along with any other contributions under this section or a provision of the applicable retirement act, shall promptly be credited to that participating member's health reimbursement account.
History:
2010, Act 77, Imd. Eff. May 19, 2010 ;-- Am. 2011, Act 265, Imd. Eff. Dec. 15, 2011
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2740a - Health Reimbursement Account; Vesting; Rights.

38.2740a Health reimbursement account; vesting; rights.
Sec. 10a.
(1) A member or participating member is 100% vested in mandatory contributions and voluntary contributions made to his or her health reimbursement account, subject to permissible use of the contributions under this act.
(2) A member or participating member is vested in employer contributions made to his or her health reimbursement account, subject to permissible use of the contributions under this act, according to the following schedule:
(a) Fifty percent vested after earning 2 years of service as determined by the applicable retirement act.
(b) Seventy-five percent vested after earning 3 years of service as determined by the applicable retirement act.
(c) One hundred percent vested after earning 4 years or more of service as determined by the applicable retirement act.
(3) A past member and his or her health reimbursement account dependents have the right to reimbursement of medical expenses under this act to the extent such funds exist in the past member's health reimbursement account.
History:
Add. 2011, Act 265, Imd. Eff. Dec. 15, 2011
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2741 - Written Plan Document; Terms and Conditions of Payments of Retirement Health Care Benefits and Reimbursements of Medical Expenses.

38.2741 Written plan document; terms and conditions of payments of retirement health care benefits and reimbursements of medical expenses.
Sec. 11.
(1) The trustees shall establish a separately written plan document that governs the terms and conditions of payments of retirement health care benefits and reimbursements of medical expenses consistent with the applicable retirement act.
(2) If the governing board of a retirement system has made a deposit described in section 3(7), the trust shall use the funds in the funding account to satisfy the requirements of the retirement system for all retirement health care benefits provided by the retirement system consistent with this act and the plan document established under this section.
(3) Any funds in the funding account may be counted toward and used in the calculation of the annual required contribution as used by the governmental accounting standards board and for purposes of the annual financial statements prepared pursuant to section 3(8).
(4) Reimbursement of medical expenses from a health reimbursement account shall be in a manner that complies with all applicable statutory provisions, regulatory provisions, and internal revenue service rulings governing health reimbursement arrangements, including, but not limited to, section 105(b) of the internal revenue code, 26 USC 105, internal revenue notice 2002-45 and internal revenue rulings 2005-24 and 2006-36.
(5) Following termination of employment, the trust for the applicable retirement system shall reimburse medical expenses, as appropriate, from the past member's health reimbursement account at least quarterly, until the past member's health reimbursement account is exhausted.
History:
2010, Act 77, Imd. Eff. May 19, 2010 ;-- Am. 2011, Act 265, Imd. Eff. Dec. 15, 2011
2023 Michigan Compiled Laws › Chapter 38 - Civil Service and Retirement › Act 77 of 2010 - Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747) › Section 38.2742 - Severability.

38.2742 Severability.
Sec. 12.
(1) If the department receives notification from the United States internal revenue service that this act or any portion of this act will cause any retirement system to be disqualified for tax purposes under the internal revenue code, or prevent any irrevocable trust from meeting the requirements of section 115 of the internal revenue code, 26 USC 115, then the portion that will cause the disqualification does not apply.
(2) The provisions of this act are severable. If any part of this act is declared invalid or unconstitutional, that declaration shall not affect the remaining part of this act.
History:
2010, Act 77, Imd. Eff. May 19, 2010