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 […]
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. […]
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 […]
Section 38.2743 – Trusts; Validity.
38.2743 Trusts; validity. Sec. 13. The trusts created by this act shall not be deemed to be invalid by reason of any indefiniteness or uncertainty of the persons designated as beneficiaries in this act and agreements creating the trusts, nor shall the trusts be deemed to be invalid as violating any existing law against perpetuities […]
Section 38.2744 – Taxation of Assets and Income; Exemption.
38.2744 Taxation of assets and income; exemption. Sec. 14. All assets and income of the trusts shall be exempt from taxation by this state or any political subdivision of this state. Except as otherwise provided in section 4(2), distributions from the trusts shall not be treated as taxable income to the past members, their health […]
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 […]
Section 38.2745 – Trustee; Exception From Certain Responsibilities; Indemnification.
38.2745 Trustee; exception from certain responsibilities; indemnification. Sec. 15. (1) A trustee shall not be any of the following: (a) Personally liable for any liability, loss, or expense suffered by the trust, unless the liability, loss, or expense arises out of or results from the willful misconduct or intentional wrongdoing of the trustee. (b) Responsible […]
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 […]
Section 38.2747 – Correction of Error by Trustees.
38.2747 Correction of error by trustees. Sec. 17. If a change or error in any records of the trust results in a member, past member, or his or her dependent paying into or receiving from the trust more or less than the member, past member, or his or her dependent should have paid or would […]
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) […]