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Section 108 of the Act, Mich. Comp. Laws sec. 38.1408,
provides the following: “This state intends that the retirement
system be a qualified pension plan created in trust under section
401 of the internal revenue code and that the trust be an exempt
organization under section 501 of the internal revenue
code. * * *”
Upon automatic enrollment in the plan, petitioner was
required to contribute 3 percent of the first $5,000 of
compensation. Consequently, $84.89 was automatically contributed
to the plan by WCC from petitioner’s total compensation in 1996
of $2,830.
In order to qualify to receive benefits under the plan,
petitioner must earn at least 10 years of credited service and be
at least 60 years old. A single credit year is earned upon
performing Michigan public school work for 170 days at 6 or more
hours per day within the school fiscal year of July 1 through
June 30. No more than 1 year of credit may be earned within 1
school fiscal year, and proportionate service credit is granted
for less than full-time employment. If petitioner is unable to
reach the 10-year minimum amount of service credit, then she will
not receive any retirement benefits. During calendar year 1996
petitioner worked 169.50 hours. Based upon the MPSERS
calculation, which is part of the stipulation of facts,
petitioner earned 0.083 years of service credit during 1996,
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Last modified: May 25, 2011