Sec. 84b.
(1) Beginning February 1, 2013, the calculation of a retirement allowance under this act for a member who did not make the election under section 59(1) and who made or is considered to have made the alternative election under section 59(2)(a) shall include only the following items of credited service, as applicable, multiplied by 1.5% of final average compensation as provided in section 84:
(a) The years and fraction of a year of credited service accrued to that member before the transition date.
(b) Service credit that was purchased before February 1, 2013.
(c) Service credit that is purchased under a payment plan pursuant to this act that was in effect as of February 1, 2013.
(d) Credit for years of service under sections 73 and 108(10).
(2) Beginning February 1, 2013, the calculation of a retirement allowance under this act for a member described in subsection (1) shall also include the following items of credited service, as applicable, multiplied by 1.25% of final average compensation:
(a) The years and fraction of a year of credited service accrued to that member on and after the transition date.
(b) Service credit that was purchased on and after February 1, 2013, except as provided in subsection (1)(c).
(3) Beginning February 1, 2013, the calculation of a retirement allowance under this act for a member who did not make the election under section 59(1) and who made the alternative election under section 59(2)(b) shall include only the following items of credited service, as applicable, multiplied by 1.5% of final average compensation as provided in section 84:
(a) The years and fraction of a year of credited service accrued to that member before the transition date.
(b) Service credit that was purchased before February 1, 2013.
(c) Service credit that is purchased under a payment plan pursuant to this act that was in effect as of January 31, 2013.
(d) Credit for years of service under sections 73 and 108(10).
(4) Beginning February 1, 2013, the calculation of a retirement allowance under this act for a member described in subsection (3) shall not include any year or fraction of a year of service performed by that member on and after the transition date or any service credit that is purchased by that member after February 1, 2013, except as provided in subsection (3)(c). Beginning with the first payroll date after the transition date, and ending upon the member's termination of service, the employer of a member described in subsection (3) shall contribute 4% of the member's compensation as defined in section 122(2) to the member's Tier 2 account. A member is vested in employer contributions made under this subsection according to the vesting provisions under section 132. A member shall be credited with years of service accrued under Tier 1 as of the transition date for purposes of meeting the applicable vesting requirements.
(5) Beginning February 1, 2013, the calculation of a retirement allowance under this act for a member who makes the election and attainment date designation under section 59(1) shall include only the following items of credited service, as applicable, multiplied by 1.5% of final average compensation as provided in section 84:
(a) The years and fraction of a year of credited service accrued to that member on or before the attainment date.
(b) Service credit that was purchased on or before the attainment date.
(c) Service credit that is purchased under a payment plan pursuant to this act that was in effect as of the attainment date.
(d) Credit for years of service under sections 73 and 108(10).
(6) Beginning February 1, 2013, the calculation of a retirement allowance under this act for a member described in subsection (5) shall also include the following items of credited service, as applicable, multiplied by 1.25% of final average compensation:
(a) The years and fraction of a year of credited service accrued to that member on and after the attainment date.
(b) Service credit that was purchased on and after the attainment date, except as provided in subsection (5)(c).
(7) Beginning on the transition date, a member described in subsection (1), (3), or (5) shall continue to accumulate years of service credit as necessary for the purpose of vesting in a retirement allowance and to determine when a retirement allowance may begin under this act, regardless of when the service credit was accrued, except as otherwise provided in section 59(8). A member described in subsection (1), (3), or (5) shall continue to be treated as a member for all purposes, except as otherwise provided in section 59(8) and except for the limitations on credited service and calculation of a retirement allowance as provided in subsections (1) through (6).
(8) The calculation of a retirement allowance under this act for a member who makes the election under section 59(1) but who does not make the attainment date designation under section 59(1) shall include all items of credited service accrued to that member, regardless of when the service credit was accrued, which shall be multiplied by 1.5% of final average compensation as provided in section 84.
(9) As used in this section, "attainment date" means the final day of the pay period in which the member attains 30 years of credited service.
History: Add. 2012, Act 300, Imd. Eff. Sept. 4, 2012 ;-- Am. 2012, Act 359, Imd. Eff. Dec. 14, 2012
Last modified: October 10, 2016