Michigan Compiled Laws Act 261 Of 1957 Michigan Legislative Retirement System Act (38.1001 - 38.1080)

AN ACT for the creation, maintenance, and administration of a legislative members' and presiding officers' retirement system within the legislature; to provide retirement allowances to the participants of the retirement system, and survivors' allowances and other benefits to their beneficiaries upon death; to exempt those allowances and benefits from certain taxes and legal processes; to establish certain funds in connection with the retirement system; to authorize and make appropriations for the retirement system; to prescribe the powers and duties of certain state departments, agencies, officials, and employees; and to prescribe penalties and provide remedies.

History: 1957, Act 261, Eff. Sept. 27, 1957 ;-- Am. 1960, Act 113, Eff. Aug. 17, 1960 ;-- Am. 1974, Act 215, Eff. Dec. 31, 1974 ;-- Am. 1996, Act 486, Eff. Mar. 31, 1997 ;-- Am. 2002, Act 97, Imd. Eff. Mar. 27, 2002

Section 38.1001 Retirement System; Creation.
A retirement system to establish a means of providing retirement allowances, survivors' allowances, and other benefits for members and their survivors and other beneficiaries,...
Section 38.1002 Michigan Legislative Retirement System; Name.
The retirement system created by section 1 shall be known as the “Michigan legislative retirement system” and all affairs and business of the system...
Section 38.1003 Construction Of Terms.
For the purposes of this act the words specified in any section or sections shall have the meanings set forth in such section or...
Section 38.1004 “retirement System” Defined.
“Retirement system” means the Michigan legislative retirement system. History: 1957, Act 261, Eff. Sept. 27, 1957 ;-- Am. 1981, Act 123, Imd. Eff. July...
Section 38.1005 Board; Definition.
“Board” means the board of trustees of the system. History: 1957, Act 261, Eff. Sept. 27, 1957
Section 38.1006 “member” Defined.
(1) Except as otherwise provided in subsection (2), “member” means any of the following: (a) A legislator of this state. (b) The secretary of...
Section 38.1007 Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Compiler's Notes: The repealed section pertained to definitions.
Section 38.1007a “direct Rollover” And “distributee” Defined.
(1) “Direct rollover” means a payment by the retirement system to the eligible retirement plan specified by the distributee. (2) “Distributee” includes a member...
Section 38.1008 Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Compiler's Notes: The repealed section pertained to definitions.
Section 38.1008a Definitions.
(1) Beginning January 1, 2002, except as otherwise provided in this subsection, "eligible retirement plan" means 1 or more of the following: (a) An...
Section 38.1009 “salary” Defined.
(1) “Salary” means the compensation, common to all legislators, exclusive of travel allowance, paid by the state for 1 year of service as a...
Section 38.1010 Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Compiler's Notes: The repealed section defined “military service.”
Section 38.1011 “service” Defined; Election To Receive Military Service Credit; Effect Of Membership In Retirement System.
(1) “Service” means the period beginning on January 1 of the year in which the member took office or on the date of the...
Section 38.1012 “retirement Allowance” Defined.
“Retirement allowance” means a series of equal monthly payments payable at the end of each calendar month to a person while he or she...
Section 38.1013 “retirant” Defined.
“Retirant” means a person receiving an annual retirement allowance from the retirement system. History: 1957, Act 261, Eff. Sept. 27, 1957 ;-- Am. 1970,...
Section 38.1013a “survivor,”“eligible Child,” And “surviving Spouse” Defined.
(1) “Survivor” means the eligible surviving spouse or eligible child or children of a member, deferred vested member, or retirant. (2) “Eligible child” means...
Section 38.1014 “refund Beneficiary” Defined.
“Refund beneficiary” means the 1 or more persons named by a member, deferred vested member, or retirant in writing and filed in the office...
Section 38.1015 Actuarial Tables; Definition.
“Actuarial tables” means such tables as are from time to time adopted by the board for computing allowances based upon the experience of the...
Section 38.1016 Prescribed Rate Of Interest; Definition.
“Prescribed rate of interest” means such rate or rates as shall from time to time be prescribed by the board. History: 1957, Act 261,...
Section 38.1017 “fiscal Year” Defined.
“Fiscal year” means the fiscal year of the state as described in section 1 of Act No. 116 of the Public Acts of 1887,...
Section 38.1017a “deferred Vested Member” Defined.
“Deferred vested member” means a member who left the legislature having satisfied the requirements of section 23(1)(a), but without having attained 55 years of...
Section 38.1017b “leadership Position” Defined.
“Leadership position” means a position held by a member of the legislature who, in addition to salary common to all legislators, receives supplemental salary...
Section 38.1017c “legislator” Defined.
“Legislator” means a person duly elected and serving in the Michigan house of representatives or the Michigan senate. History: Add. 1981, Act 123, Imd....
Section 38.1017d “tier 1” And “tier 2” Defined.
(1) “Tier 1” means the retirement plan available under this act to a member who first became a legislator or lieutenant governor before March...
Section 38.1018 Legislator Or Lieutenant Governor; Membership In Retirement System; Notice Of Election Not To Participate; Refund Of Contributions; Effect Of Notice; Rescission Of Notice; Contributions And Interest; Eligibility On Or After March 31, 1997.
(1) Except as otherwise provided in section 23b, a person who first becomes a legislator or lieutenant governor before March 31, 1997 shall become...
Section 38.1019 Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Compiler's Notes: The repealed section subjected participants to survivors' retirement allowances.
Section 38.1020 Members' Retirement Fund; Creation; Purpose; Computing Retirement Reserves For Retirement Allowances; Financing; State's Appropriations For Current Service, Accrued Service, And Retirement Allowances; Allocation Of Employer Contributions.
(1) The members' retirement fund is created. The fund shall accumulate reserves for the payment of retirement allowances to retired members and deferred vested...
Section 38.1021 Members' Savings Fund; Creation; Purpose; Contributions; Rate; Additional Contributions; Payroll Deductions; Transfer Of Contributions Upon Retirement Or Death.
(1) The members' savings fund is created in the retirement system. The retirement system shall accumulate in the members' savings fund the contributions made...
Section 38.1021a Member Contributions Picked Up By State.
The state shall pick up the member contributions required by sections 21, 22, 22c, and 50a for all compensation earned after December 31, 1986....
Section 38.1022 Survivors' Retirement Fund; Creation; Purpose; Contributions; Rate; Payroll Deductions; Computing Retirement Reserves For Retirement Allowances; Financing; State's Appropriations For Survivors' Retirement Allowances.
(1) The survivors' retirement fund is created in the retirement system. The retirement system shall accumulate in the survivors' retirement fund reserves for the...
Section 38.1022a Income Fund; Creation; Purpose; Interest, Dividends, And Other Income; Expenses.
(1) An income fund is created in the retirement system. The retirement system shall credit to the income fund all interest, dividends, and other...
Section 38.1022b Prorating And Allocating Annual Appropriations To Retirement System.
Annual appropriations of the state made pursuant to this act shall be prorated and allocated to the retirement system not less than quarterly. Payment...
Section 38.1022c Health Insurance Fund; Creation; Disposition; Disbursement; Contributions; Payroll Deductions; Nonrefundable.
(1) The health insurance fund is created in the retirement system. The retirement system shall deposit into the health insurance fund the member contributions...
Section 38.1023 Requirements For Entitlement To Retirement Allowance; Right To Allowance; Amount; Recalculation Of Retirement Allowance; Election To Defer Receipt Of Retirement Allowance; Computation Of Retirement Allowance; Longevity Allowance.
(1) A member or deferred vested member who meets the following requirements shall be entitled to a retirement allowance: (a) The member or deferred...
Section 38.1023a Repealed. 1974, Act 215, Eff. Dec. 31, 1974.
Compiler's Notes: The repealed section pertained to retirement upon attaining age 55.
Section 38.1023b Retirant Or Deferred Vested Member Again Becoming Legislator Or Lieutenant Governor; Election To Again Become Member; Notice; Conditions; Nonpayment Of Retirement Allowance; Declining To Again Become Member; Exception.
(1) Notwithstanding section 18 and except as otherwise provided in subsection (4), if a retirant or a deferred vested member again becomes a legislator...
Section 38.1023c Increase Of Retirement Allowance.
(1) After December 31, 1986, on January 1 of each year a retirement allowance attributable to a member who first becomes a member on...
Section 38.1023d Disabled Member; Retirement Allowance; Annual Examination.
(1) A member who meets the service requirements of section 23(1)(a) but not the age requirements of section 23(1)(b), a member who does not...
Section 38.1023e Supplemental Payments For Retirants Or Retirement Allowance Beneficiaries With Retirement Allowance Effective Date Before January 1, 1979; Future Adjustments.
(1) Effective January 1, 1988, but before any of the increases provided by section 23c on or before January 1, 1988 are included, the...
Section 38.1024 Survivor's Retirement Allowance; Eligibility; Duration, Commencement, And Rate; Status Of Adopted Child; Payments To Eligible Child; Effect Of Marriage Or Attainment Of Ineligible Age; Payment Of Survivor's Retirement Allowance As Provided In Written Designation; Division Of Survivor's Retirement Allowance Among Eligible Survivors; Receipt Of Entire Survivor's Retirement Allowance By Surviving Spouse When Eligible Children Become Ineligible.
(1) Unless otherwise provided by the member pursuant to this act, the surviving spouse of a deceased member, deferred vested member, or retirant having...
Section 38.1024a Remarriage Of Surviving Spouse.
The remarriage of a surviving spouse shall not render the surviving spouse ineligible to receive a survivor's retirement allowance described in section 24. A...
Section 38.1025 Retirement System As Trust; Board As Fiduciary; Nonapplicability To Tier 2 Retirement Plan.
(1) The retirement system shall be construed to be a trust, separate from all other entities, maintained for the purpose of securing payment of...
Section 38.1026 Retirement System; Board Of Trustees; Membership; Eligibility And Terms; Oath Of Office.
(1) The retirement system shall be administered by a board of trustees, consisting of 11 persons as follows: (a) Two members of the house...
Section 38.1027 First Board Of Trustees; Organizational Meeting, Election Of Officers.
The first board shall meet as soon as practicable after the enactment of this act, at Lansing, Michigan, for the purpose of organizing this...
Section 38.1028 Vacancy In Trusteeship.
Beginning January 1, 2012, a vacancy in a trusteeship shall be filled as provided in the bylaws. History: 1957, Act 261, Eff. Sept. 27,...
Section 38.1029 Trustees; Compensation And Expenses.
Trustees shall serve without compensation but shall be reimbursed for any reasonable traveling expenses incurred in attending meetings of the board. History: 1957, Act...
Section 38.1030 Board Of Trustees; Quorum, Proxy.
Each trustee is entitled to 1 vote on any action of the board and at least 6 concurring votes are necessary for any action...
Section 38.1031 Board Of Trustees; Powers And Duties.
The board shall, in addition to all other powers and duties arising out of this act and not otherwise specifically reserved or delegated to...
Section 38.1032 Board Of Trustees; Regular And Special Meetings; Conducting Business At Public Meeting; Notice Of Meeting.
The board shall hold regular meetings at least quarterly each year and special meetings when considered necessary by the chairperson of the board. Meetings...
Section 38.1033 Board Of Trustees; Authority As To Retirement Allowances, Suspensions And Refunds.
The board shall consider and pass on all applications for retirement allowances and refunds, authorize the granting of all retirement allowances and refunds and...
Section 38.1034 Board Of Trustees; Certification Of Prescribed Interest Rate; Adoption Of Actuarial Tables.
The board shall certify in the records of the board the prescribed interest rate, and adopt all necessary actuarial tables in accordance with certifications...
Section 38.1035 Board Of Trustees; Estimate Of Appropriation.
The board shall submit to the governor on or before November first of each year an estimate of the amount of appropriation required for...
Section 38.1036 Repealed. 1987, Act 58, Imd. Eff. June 23, 1987.
Compiler's Notes: The repealed section pertained to investments by board of trustees.
Section 38.1036a Reinstatement Of Suspended Contributions.
If the actuary determines in his or her annual valuation of the system that the system is less than 100% funded, the retirement board...
Section 38.1037 Repealed. 1981, Act 123, Imd. Eff. July 23, 1981.
Compiler's Notes: The repealed section pertained to annual medical examination of disability retirants.
Section 38.1038 Board Of Trustees; Offices; Books And Records; Availability Of Certain Writings To Public.
The board shall establish an office or offices which provide suitable space for the meetings of the board and for the necessary administrative personnel....
Section 38.1039 Board Of Trustees; Appointment Of Secretary And Administrative Personnel.
The board shall appoint a secretary and employ such other actuarial, medical, clerical or other help as shall from time to time be required...
Section 38.1040 Board Of Trustees; Record Of Proceedings; Individual Accounts; Actuarial Data.
The board shall keep a permanent record of all proceedings of the board, a separate account for each individual member and such additional data...
Section 38.1041 Board Of Trustees; Audit Of Accounts; Annual Statement.
The board shall have the accounts of the system audited at least biennially by the auditor general and submit an annual statement to the...
Section 38.1042 Acceptance Of Gift, Grant, Or Bequest By Board.
The board may accept any gift, grant, or bequest of any money or securities for the purposes designated by the grantor. History: 1957, Act...
Section 38.1043 Individual Statement.
The board shall submit an individual statement to a member, deferred vested member, or retirant upon reasonable request. The statement shall indicate the amount...
Section 38.1044 Rules And Bylaws.
The board shall adopt rules and bylaws necessary for the efficient administration of the system. History: 1957, Act 261, Eff. Sept. 27, 1957 ;--...
Section 38.1045 Secretary Of Board; Powers And Duties.
The secretary of the board shall be in charge of the administration of the detailed affairs of the retirement system and, in addition to...
Section 38.1046 Actuary; Technical Advisor Of Board, Powers And Duties.
The actuary shall be the technical advisor of the board and, in addition to supplying general information on technical matters, shall: 1. Make an...
Section 38.1047 State Treasurer As Ex Officio Treasurer Of Retirement System; Duties.
The state treasurer shall be ex officio the treasurer of the retirement system and shall: (a) Act as official custodian of the cash and...
Section 38.1048 Warrants.
The accounting division of the department of management and budget is authorized and directed to draw warrants upon the state treasurer payable from the...
Section 38.1049 Payroll Voucher.
(1) All payroll vouchers covering payments of salary to members for their services shall indicate all of the following: (a) The amount of member...
Section 38.1050 Investment And Reinvestment Of Cash Assets; Nonapplicability To Tier 2.
The cash assets of the retirement system in excess of the amount required for current operations shall be invested and reinvested by the board...
Section 38.1050a Grants And Insurance Revolving Fund; Creation; Purpose; Expenditures; Payments To Fund By Payroll Deductions; Purchase And Payment Of Premiums On Life Insurance Policies.
(1) The grants and insurance revolving fund is created in the state treasury as a separate fund, into which shall be paid legislative grants,...
Section 38.1050b Hospitalization, Medical, Dental, And Vision Coverage; Purchase; Payment Of Premiums; Manner.
(1) For a retirant or a survivor or beneficiary of a deceased retirant, or for a deferred vested member if that deferred vested member...
Section 38.1051 Investment Of Retirement System Funds; Ownership By System; Registration; Recording; Nonapplicability To Tier 2.
The retirement board shall clearly mark all investments to indicate ownership by the system and, to the extent possible, shall register all investments in...
Section 38.1052 Board Of Trustees And Employees; Interest In Investments Prohibited; Violation Of Section, Penalty.
Except as otherwise herein provided, no trustee and no employee of the board shall have any direct interest in the income gains or profits...
Section 38.1053 Vested Interest In Refunds; Payment Of Member Contributions; Discharge Of Claims.
(1) Each member shall, by virtue of the payment of the member contributions required to be paid to the retirement system, receive a vested...
Section 38.1054 Payments As Obligations Of State; Disposition Of Revenues.
(1) It is the intention of the legislature that the payment of the required state contributions, all benefits granted under this system, and all...
Section 38.1055 Refund Of Contributions With Interest; Request; Forfeiture; Service Credit Upon Resumption Of Membership; Designation Of Beneficiary; Payment Of Contributions With Interest.
(1) A member who does not meet the requirement of section 23(1)(a) upon leaving service, or a deferred vested member who is no longer...
Section 38.1056 Undivided Interest In Assets Of System.
The assets of the system shall be invested as one fund, and no particular person, group of persons or entity shall have any right...
Section 38.1057 Retirement Allowances, Benefits, And Credits Not Subject To Taxation; Subject To Taxation Beginning January 1, 2012; Subject To Public Employee Retirement Benefit Protection Act.
(1) Except as otherwise provided in this section, all retirement allowances and other benefits payable under this act and all accumulated credits of members,...
Section 38.1058 Retirement System Records; Falsification, Penalty.
Any person who knowingly makes any false statement, or falsifies or permits to be falsified any record of this system, in any attempt to...
Section 38.1058a Correction Of Error; Adjustment Of Payment.
If a change or error in the records of the retirement system results in a retirant, retirement allowance beneficiary, or refund beneficiary receiving from...
Section 38.1059 Payment Of Benefits; Commencement.
No payments of benefits shall be made until on or after the first day of January, 1959. History: 1957, Act 261, Eff. Sept. 27,
Section 38.1059a Retirement System As Qualified Pension Plan; Administrative Requirements And Benefit Limitations; Qualified Military Service.
(1) This section is enacted pursuant to section 401(a) of the internal revenue code, 26 USC 401, that imposes certain administrative requirements and benefit...
Section 38.1060 Short Title.
This act shall be known and may be cited as the “Michigan legislative retirement system act”. History: 1957, Act 261, Eff. Sept. 27, 1957...
Section 38.1061 Election To Terminate Membership In Tier 1 And Become Qualified Participant In Tier 2; Election By Deferred Vested Member Or Former Nonvested Member; Election As Irrevocable; Rights And Duties; Method Of Election; Signature Of Spouse; Waiver; Election Subject To Eligible Domestic Relations Order; Notice Of Disqualification For Tax Purposes.
(1) The retirement system shall provide an opportunity for each member who is a member on March 30, 1997, to elect in writing to...
Section 38.1062 Election To Terminate Membership In Retirement System Under Mcl 38.1061(1) And (2); Transfer Of Lump Sum Amount; Recomputation; Calculation; Basis; Utilization Of Actuarial Valuation Report; Notification Of Disqualification For Tax Purposes.
(1) For a member who elects to terminate membership in Tier 1 under section 61(1), the retirement system shall direct the state treasurer to...
Section 38.1063 Calculation Of Accrued Cost Savings; Submission Of Total Amount In Executive Budget To Legislature; Appropriation.
After consulting the retirement system's actuary, the board shall calculate for each fiscal year any cost savings that have accrued to this state as...
Section 38.1064 Meanings Of Words And Phrases; “accumulated Balance” Defined.
(1) For the purposes of this section and sections 65 to 80, the words and phrases defined in this section and sections 65 to...
Section 38.1065 “employer,”“former Qualified Participant,” And “health Benefit Dependent” Defined.
(1) “Employer” means this state. (2) “Former qualified participant” means an individual who was a qualified participant and who terminates the employment upon which...
Section 38.1066 “qualified Participant,”“refund Beneficiary,” And “state Treasurer” Defined.
(1) “Qualified participant” means an individual who is a participant of Tier 2 and who meets 1 of the following requirements: (a) An individual...
Section 38.1067 Administration And Investment Of Tier 2 By State Treasurer; State Treasurer As Fiduciary And Trustee; Appointment Of Advisory Board; Determination Of Provisions And Procedures; Authority And Responsibility Of State Treasurer To Employ Or Contract With Employees Or For Services.
(1) The state treasurer shall administer Tier 2 and shall invest the assets of Tier 2. The state treasurer is the fiduciary and trustee...
Section 38.1068 Hearing.
(1) A qualified participant, former qualified participant, health benefit dependent, or refund beneficiary may request a hearing on a claim involving his or her...
Section 38.1069 Accumulated Employer And Employee Contributions And Earnings; Direction Of Investment; Limitations Inapplicable To Tier 2.
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...
Section 38.1070 Tier 2; Payment Of Administrative Expenses.
The administrative expenses of Tier 2 shall be paid by the qualified participants, former qualified participants, and refund beneficiaries who have not closed their...
Section 38.1071 Participation In Other Public Sector Retirement Benefits Plan.
A qualified participant shall not participate in any other public sector retirement benefits plan for simultaneous service rendered to the same public sector employer....
Section 38.1072 Individual Becoming Legislator Or Lieutenant Governor On Or After March 31, 1997; Notice Of Election.
An individual who first becomes a legislator or lieutenant governor on or after March 31, 1997 may irrevocably elect not to become a qualified...
Section 38.1073 Election To Terminate Membership In Tier 1; Crediting Tier 2 Account; Charging Tier 2 Account For Excess Transfers.
(1) The state treasurer shall promptly credit the Tier 2 account of a qualified participant who makes an election under section 61 to terminate...
Section 38.1074 Section Subject To Vesting Requirements; Tier 2 Contributions By Employer And Qualified Participant; Limitations.
(1) This section is subject to the vesting requirements of section 75. (2) A qualified participant's employer shall contribute to the qualified participant's account...
Section 38.1075 Tier 2; Vesting Requirements And Schedule; Health Care Coverage; Vesting Requirements.
(1) A qualified participant is immediately 100% vested in his or her contributions made to Tier 2. A qualified participant shall vest in the...
Section 38.1076 Crediting Years Of Accrued Service.
A qualified participant who was a member, deferred vested member, or former nonvested member of Tier 1 who makes an election to participate in...
Section 38.1077 Refund Beneficiary; Nomination.
A qualified participant or former qualified participant may nominate 1 or more individuals as a refund beneficiary by filing written notice of nomination with...
Section 38.1078 Distribution Of Accumulated Balance.
(1) A qualified participant is eligible to receive distribution of his or her accumulated balance in Tier 2 upon becoming a former qualified participant....
Section 38.1079 Health Insurance Coverage; Election; Eligibility.
(1) A former qualified participant may elect health insurance benefits in the manner prescribed in this section if he or she meets both of...
Section 38.1080 Distributions; Exemption From Tax; Subject To Public Employee Retirement Benefit Protection Act; Right Of Setoff To Recover Overpayment And Satisfy Claims; Correction Of Errors In Records And Actions.
(1) Distributions from employer contributions made pursuant to section 74(2) and (3) and earnings on those employer contributions, and distributions from employee contributions made...

Last modified: October 10, 2016