38.1420 Tier 2 plan; implementation. Sec. 120. Notwithstanding any other provision of this act, the Tier 2 plan under this article will be implemented by the department as soon as administratively feasible but not later than January 1, 2011. History: Add. 2010, Act 75, Imd. Eff. May 19, 2010 Compiler’s Notes: Enacting section 1 of […]
38.1421 Words and phrases in sections 122 to 124; date for implementation of Tier 2 plan. Sec. 121. (1) For the purposes of this article, the words and phrases defined in sections 122 to 124 have the meanings ascribed to them in those sections. (2) Notwithstanding any other provision of this act, the Tier 2 […]
38.1422 “Accumulated balance” and “compensation” defined. Sec. 122. (1) “Accumulated balance” means the total balance in a qualified participant’s, former qualified participant’s, or refund beneficiary’s individual account in Tier 2. (2) “Compensation” means the remuneration paid a participant on account of the participant’s services rendered to his or her employer equal to the sum of […]
38.1423 “Employer” and “former qualified participant” defined. Sec. 123. (1) “Employer” means a reporting unit. (2) “Former qualified participant” means an individual who was a qualified participant and who terminates the employment upon which his or her participation is based for any reason. History: Add. 2010, Act 75, Imd. Eff. May 19, 2010 Compiler’s Notes: […]
38.1424 “Plan document,” “qualified participant,” “refund beneficiary,” and “state treasurer” defined. Sec. 124. (1) “Plan document” means the document that contains the provisions and procedures of Tier 2 in conformity with this act and the internal revenue code. (2) “Qualified participant” means an individual who is a participant of Tier 2 and who is first […]
38.1425 Tier 2; department as fiduciary and trustee; appointment of advisory board; provisions and procedures; personnel and other services; adoption and compliance. Sec. 125. (1) The department shall administer Tier 2 and shall be the fiduciary and trustee of Tier 2. The department may appoint an advisory board to assist the department in carrying out […]
38.1426 Request for hearing; conduct under administrative procedures act of 1969. Sec. 126. (1) A qualified participant, former qualified participant, or refund beneficiary may request a hearing on a claim involving his or her rights under Tier 2. Upon written request, the department shall provide for a hearing that shall be conducted pursuant to chapter […]
38.1427 Investment; direction by qualified participant, former qualified participant, and refund beneficiary; applicability of limitations; annuity options. Sec. 127. (1) 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 […]
38.1428 Tier 2; administrative expenses. Sec. 128. 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 department. History: Add. 2010, Act 75, Imd. Eff. May 19, 2010 Compiler’s Notes: Enacting section 1 of […]
38.1429 Participation in other public sector retirement benefits plan; “public sector employer” defined. Sec. 129. A qualified participant shall not participate in any other public sector retirement benefits plan for simultaneous service rendered to the same public sector employer. Except as otherwise provided in this act or by the department, this section does not prohibit […]
38.1431 Tier 2 account; contributions; additional contribution; additional matching contributions by employer. Sec. 131. (1) This section is subject to the vesting requirements of section 132. (2) Unless a qualified participant who is also a member of Tier 1 affirmatively elects not to contribute or elects to contribute a lesser amount, the qualified participant who […]
38.1431a Tier 2 accounts; terms and conditions. Sec. 131a. Tier 2 accounts are subject to the following terms and conditions: (a) On or before January 1, 2013, the retirement system shall design an automatic enrollment feature that provides that unless a qualified participant who makes contributions under this act elects to contribute a lesser amount, […]
38.1432 Vesting. Sec. 132. 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 […]
38.1434 Refund beneficiary. Sec. 134. 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 department. 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 […]
38.1435 Tier 2; eligibility to receive distribution; effect of death of qualified participant; methods of distribution. Sec. 135. (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 […]
38.1437 Exemption from state, county, municipal, or local tax; right to setoff to recover overpayments. Sec. 137. (1) Distributions from employer contributions made pursuant to section 131(2) and earnings on those employer contributions, and distributions from employee contributions made pursuant to section 131(2) and earnings on those employee contributions, are exempt from any state, county, […]
38.1451-38.1467 Repealed. 1997, Act 143, Imd. Eff. Nov. 19, 1997. Compiler’s Notes: The repealed sections pertained to termination of membership on Tier 1 and contributions to Tier 2 account.
