Section 38.1343d - Contributions to member investment plan; election; conditions; amount; method, timing, and disposition of payments; applicability of section.
THE PUBLIC SCHOOL EMPLOYEES RETIREMENT ACT OF 1979 (EXCERPT)
Act 300 of 1980
38.1343d Contributions to member investment plan; election; conditions; amount; method, timing, and disposition of payments; applicability of section.
Sec. 43d.
(1) On or before December 31, 1998, or, if the notification described in subsection (4) is not received by July 1, 1998, then on or before the expiration of 180 days after the department receives that notification, a member who meets all of the following conditions may irrevocably elect to make the contributions described in section 43a(2) to the member investment plan:
(a) He or she was employed by a reporting unit on or after January 1, 1987 and before January 1, 1990.
(b) He or she had 1 year or less of credited service in effect on January 1, 1990.
(c) He or she did not elect to make contributions to the member investment plan.
(d) He or she was not a member during the period that members were eligible to make the election under section 43a(3).
(2) In addition to making the contributions required under section 43a(2), a member who elects to make contributions to the member investment plan under subsection (1) shall make a contribution equal to the sum of the following:
(a) 4% of the compensation received on or after January 1, 1987 to December 31, 1989.
(b) 3.9% of the compensation received on or after January 1, 1990 to the date of the election.
(c) An amount equal to the compound interest that would have accumulated on those contributions as described in section 33.
(d) An amount equal to the net actuarial cost of the additional benefits attributable to service credited before January 1, 1987, as determined by the retirement board.
(3) The method and timing of payment by a member under this section shall be determined by the retirement board. The contributions made under this section shall be deposited into the reserve for employee contributions.
(4) This section does not apply until the department receives notification from the United States internal revenue service that this section will not cause the retirement system not to be qualified for tax purposes under the internal revenue code.
History: Add. 1998, Act 123, Imd. Eff. June 10, 1998
Popular Name: Act 300