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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)



STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL


Opinion No. 6179

August 25, 1983

RETIREMENT AND PENSIONS:

Reciprocal Retirement Act--purchase of service credit for retirement allowance from a preceding reciprocal unit

A person who withdrew accumulated contributions from a public retirement system of a municipality prior to the time that the municipality adopted the provisions of the Reciprocal Retirement Act, 1961 PA 88, may not buy back such prior service for the purposes of receiving a retirement allowance from the municipality as a preceding reciprocal unit.

Honorable Michael J. Griffin

State Representative

The Capitol

Lansing, Michigan

You have requested my opinion on the following question:

May a person who left city service in 1964 and withdrew his money from the city pension plan buy back his service credit (years of service) in 1980, even though the city did not adopt the Reciprocal Retirement Act until 1971, for the purpose of qualifying for a retirement allowance from the city pension plan as a preceding reciprocal unit?

The Reciprocal Retirement Act, 1961 PA 88; MCLA 38.1101 et seq; MSA 4.1601 et seq, Sec. 3 sets forth the method by which a municipality may adopt the provisions of the Act.

Section 4 of 1961 PA 88, supra, addresses membership eligibility for a retirement allowance and, in pertinent part, provides:

'A member of a reciprocal retirement system who leaves the employ of a reciprocal unit, designated as the preceding reciprocal unit, and enters the employ of another governmental unit, designated as the succeeding governmental unit, shall be entitled to a retirement allowance payable by the preceding reciprocal unit's retirement system subject to the following conditions:

'b) The member does not withdraw his or her accumulated deposits from the preceding reciprocal unit's retirement system, or having withdrawn the accumulated deposits, deposits with the preceding reciprocal unit the amount withdrawn together with interest compounded annually at the rate in effect for the preceding reciprocal unit; the deposit to be made before July 1, 1980 (1) or 5 years after the date the member becomes employed by the succeeding governmental unit.' (Emphasis added.)

It is noted that as used in 1961 PA 88, supra, Sec. 2(d), 'reciprocal unit' means any municipal unit which elects to come under its provisions.

The purpose of 1961 PA 88, supra, as stated in its title, is to provide for the preservation and continuity of retirement system credit for public employees who transfer their employment between units of government which elect to come under the Act. An eligible person may combine credited service with the preceding reciprocal retirement system, electing to come under the Act, with credited service acquired in the employ of succeeding governmental units to meet the minimum service requirement of the preceding reciprocal retirement system for purposes of qualifying for an age and service retirement, provided the conditions of the Act are observed. 1961 PA 88, Sec. 4, supra.

The language of the pertinent provisions of 1961 PA 88, supra, is plain and unambiguous. It is a cardinal rule of statutory construction that the Legislature must be held to intend the meaning which it has plainly expressed, and in such cases, there is no room for construction or attempted interpretation to vary that meaning. Dussia v Monroe County Employees Retirement System, 386 Mich 244; 191 NW2d 307 (1971).

1961 PA 88, Sec. 3(3) and (4) are explicit in stating that the municipal unit which has elected to come under the provisions of the Act shall become a reciprocal unit only after the filing of the written certification with the Secretary of State, and further, that the provisions of the Act become effective upon the adoption of the municipal unit. It is bound by its terms.

In 1961 PA 88, Sec. 4, supra, the Legislature has established the eligibility requirements for eligibility for a retirement allowance. It expressly provides that such individual shall be a member of a reciprocal retirement system at the time of leaving employment of the reciprocal unit. 1961 PA 88, supra, makes no provision for members of a public retirement system who terminated their employment prior to the municipal unit adopting the provisions of 1961 PA 88, supra. The express mention in a statute of one thing implies exclusion of all other similar things. Sebewaing Industries, Inc v Village of Sebewaing, 337 Mich 530; 60 NW2d 444 (1953).

OAG, 1979-1980, No 5586, p 448 (October 19, 1979), considered the question whether a member of a retirement system who had separated from public school employment may purchase military service credit. The opinion concluded that the intent of the law was clear in permitting only such members of the retirement system who were current employees to purchase such military service credit. Similarly, 1961 PA 88, Sec. 4, supra, requires that an individual seeking retirement benefits pursuant to the Reciprocal Retirement Act, supra, must have left employment with the preceding reciprocal unit after such time as the unit had adopted the provisions of the Act.

It is my opinion, therefore, that a person who withdrew accumulated contributions at the time of leaving city service in 1964 prior to the time that the city adopted the provisions of the Reciprocal Retirement Act, supra, may not buy back such prior service, and for that reason, is precluded from receiving a retirement allowance to be paid by the preceding reciprocal unit pursuant to the provisions of 1961 PA 88, supra.

Frank J. Kelley

Attorney General

(1) It is noted that the Legislature, by means of 1982 PA 520, amended 1961 PA 88, Sec. 4(b), supra, to extend the date for depositing amounts withdrawn from a preceding reciprocal unit to July 1, 1983.

 


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