[ Previous Page] [ Home Page ]
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. 6306 July 22, 1985 RETIREMENT SYSTEMS: Public School Employees' Retirement System--time for purchase of prior service credit Persons who cease to be members of the Public School Employees' Retirement System and withdraw their contributions from the system may, upon return to reporting unit service for the requistite period, purchase prior service credit previously forfeited by repaying the contributions withdrawn with simple interest at any time prior to the effective date of retirement. Mr. Norvel A. Hansen Public School Employees' Retirement System Department of Management and Budget Stevens T. Mason Building Lansing, Michigan 48909 You have requested my opinion on the following question: 'Is a person who satisfied the one-year return to public school employment requirement for eligibility to repay a refund but who, during such return, did not repay the refund, required to again return to accrue an additional year of credited service for eligibility to repay the refund?' The Public School Employees' Retirement Act of 1979, MCL 38.1366(1); MSA 15.893(176)(1), provides: 'Except as provided in section 65, if a member ceases to be a public school employee for any reason, except while on official leave from service with the reporting unit, the person shall cease to be a member. The person's credited contributory membership service and credited prior service shall be forfeited and no longer in effect if the person withdraws the accumulated contributions from the retirement system. If the person returns to reporting unit service, the person shall again become a member. If accumulated contributions were withdrawn and the person returns for a period of not less than 1 year of credited service, the person may pay into the retirement system, before the effective date of the person's retirement, the amount withdrawn, together with simple interest, for the time the amount was withdrawn from the fund to the semiannual anniversary of the date of withdrawal following the date of repayment. Upon payment in full, the member shall be allowed credit for the service upon which the refund was based, which shall reinstate the previously forfeited service. However, a member who previously withdrew the contributions and who separated from reporting unit service for 60 consecutive calendar months shall not be allowed credit for the service upon which the refund was based until the member returns to service for 2 or more years of credited service and returns the accumulated contributions previously withdrawn, together with simple interest on that amount, computed from the date of withdrawal to the semiannual anniversary of the date of withdrawal following the date of repayment.' (Emphasis added.) It is a cardinal rule that the Legislature must have intended that which it has plainly expressed. Dussia v Monroe County Employees Retirement System, 386 Mich 244, 249; 191 NW2d 307 (1971). MCL 38.1366(1); MSA 15.893(176)(1), contains two conditions only prerequisite to the opportunity to purchase service credit forfeited as a result of withdrawal of accumulated contributions upon a prior termination of membership, i.e., a returning member must be employed by a reporting unit for a period of not less than one year of credited service (two years if separated for 60 consecutive calendar months), and must complete repayment prior to the effective date of his or her retirement. It is my opinion, therefore, that once a member has returned to reporting unit service for a period of not less than one year of credited service (two years if separation was for 60 consecutive calendar months), he or she is then eligible to pay into the retirement system the amounts previously withdrawn, together with simple interest, in accordance with MCL 38.1366(1); MSA 15.893(176)(1), and, upon payment in full prior to the effective date of retirement, the member shall be allowed credit for the prior service upon which the refund was based. Frank J. Kelley Attorney General
[ Previous Page] [ Home Page ]