M.E.R.S. - Municipal Employees'
Retirement System of Michigan Plan


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Municipal Employees' Retirement System of Michigan Plan Document

(Inclusive of last revision of May 13, 2009)



MUNICIPAL EMPLOYEES' RETIREMENT 


SYSTEM OF MICHIGAN 


PLAN DOCUMENT 


(Current and up-to-date. All changes since adoption of Plan in l996 
noted at the end of each section.) 

A resolution to establish the retirement system provisions available to 
municipalities and courts within the State of Michigan who elect to 
participate in the Municipal Employees’ Retirement System as the retirement 
program for their employees and the financing mechanism. 

Compiler’s Statement: The Plan Document in a 
number of instances reflect non-substantive editorial 
changes for uniformity and ease of reference. At the 
end of each section, the History states the origin of the 
section, and any Note reflects Plan changes made by 
the Retirement Board. These technical changes are 
intended to produce a more uniform and readable Plan 
Document. 

See Index of Changes to MERS Plan Document for each calendar 
year beginning in 2002 on next page. 

The entire Plan Document is available in an electronic version at http://www.mersofmich.com/ 
under “Legal and Legislation.” 

.
INDEX TO BOARD APPROVED PLAN DOCUMENT CHANGES 

APPROVED CHANGES IN 2002* 
(Consult Note at end of each section amended for further detail.) 


(1) 
Section 2A(9)-(10) revised May 8, 2002, and August 14, 2002, to reflect changes in 
the Internal Revenue Code made by the Economic Growth and Tax Relief 
Reconciliation Act of 2001 (EGTRRA). 

(2) 
Section 5(2)(a)(ii) (second paragraph) revised February 13, 2002. 

(3) 
Section 7(3) revised November 13, 2002. 

(4) 
Section 26(3)(c) revised May 8, 2002. 

(5) 
Section 55 revised May 8, 2002, and August 14, 2002, to reflect changes in the 
Internal Revenue Code made by EGTRRA. 

APPROVED CHANGES IN 2003* 
(Consult Note at end of each section amended for further detail.) 


(1) 
Section 46B repealed by Board action of March 12, 2003. 

(2) 
Section 55A added March 12, 2003. 

(3) 
Section 2C(7) amended May 14, 2003. 

(4) 
Section 10(6) added May 14, 2003. 

(5) 
Section 11(1)(p) and (2)(e) added May 14, 2003. 

(6) 
Section 31(1) amended May 14, 2003. 

(7) 
Section 34 amended May 14, 2003. 

(8) 
Section 4(6) revised September 30, 2003. 

APPROVED CHANGES IN 2004* 
(Consult Note at end of each section amended for further detail.) 


(1) 
Section 55 amended by Board action of March 10, 2004. 

(2) 
Section 3(3) repealed May 12, 2004. 

(3) 
Section 31(1) amended May 12, 2004. 

(4) 
Section 23, subsection (9), added August 11, 2004. 

(5) 
Plan Amendment Procedure revised September 21, 2004. 

(6) 
Sections 60-64 of Article VIII added November 10, 2004. 

(7) 
Section 2A(4), (5) and (15), Section 2B, and Section 36 amended effective 
December 27, 2004, to comply with amendments made by 2004 PA 490, amending 
the Municipal Employees’ Retirement Act of 1984, Sections 2A, 2B and 36; 
MCLA 38.1502a, 38.1502b, and 38.1536. 

*All changes have immediate effect unless otherwise stated. 

MERS Plan Doc: Revised as of May 13, 2009 
1 

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APPROVED CHANGES IN 2005* 
(Consult Note at end of each section amended for further detail.) 


(1) 
Plan Amendment Procedure revised March 8, 2005. 

(2) 
Section 55(7) amended September 20, 2005. (Second sentence added pursuant to June 15, 2005 
IRS Letter of Favorable Determination.) 

(3) 
Section 10(6)(c) amended November 8, 2005. (Final clause concerning temporary DROP+ 
benefits deleted.) 

APPROVED CHANGES IN 2006* 
(Consult Note at end of each section amended for further detail.) 


(1) 
Section 2C(3)(b) amended March 14, 2006. 

(2) 
Section 43C added March 14, 2006, effective July 1, 2006. 

(3) 
Benefit Program “H” (Hybrid), Section 19B (and numerous amendments noted at the end of 
Section 19B) added March 14, 2006. 

(4) 
Section 19B(1) amended May 18, 2006, to be effective March 14, 2006. 

(5) 
Section 19A amended September 19, 2006, to be effective October 1, 2006. 

APPROVED CHANGES IN 2007* 
(Consult Note at end of each section amended for further detail.) 


(1) 
Section 3(2) amended March 13, 2007. 

(2) 
Section 2C amended September 18, 2007, to be effective January 1, 2008. 

(3) 
Section 43C amended September 18, 2007, to be effective January 1, 2008. 

APPROVED CHANGES IN 2009* 
(Consult Note at end of each section amended for further detail.) 


(1) 
Section 2A(9) amended January 14, 2009. 

(2) 
Section 32(1) amended January 14, 2009. 

(3) 
Section 41(3) amended January 14, 2009. 

(4) 
Section 41A(3) amended January 14, 2009. 

(5) 
Section 4 amended March 11, 2009. 

(6) 
Section 43C(1) and (4) amended March 11, 2009. 

(7) 
Section 23 amended May 13, 2009, to be effective July 1, 2009. 

(8) 
Section 23B added May 13, 2009, to be effective July 1, 2009. 

(9) 
Section 26 amended, with immediate effect and retroactive to January 1, 2007. 

*All changes have immediate effect unless otherwise stated. 

MERS Plan Doc: Revised as of May 13, 2009 
2 

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TABLE OF CONTENTS 


Preface ................................................................................................................................................... 1-1 


ARTICLE I. GENERAL PROVISIONS ................................................................................ 1-1 to 1-10 


Section 1: Short Title [MCL 38.1501] ........................................................................................................... 1-1 
Section 2: Meanings of Words and Phrases [MCL 38.1502]......................................................................... 1-1 
Section 2A: Definitions; A through L [MCL 38.1502a.]....................................................................... 1-1 to 1-4 
Section 2B: Definitions; M through O [MCL 38.1502b.] ..................................................................... 1-5 to 1-7 
Section 2C: Definitions; P through Z [MCL 38.1502c.] ....................................................................... 1-7 to 1-8 
Section 3: Membership ..................................................................................................................... 1-9 to 1-10 


ARTICLE II. SERVICE CREDIT............................................................................................ 2-1 to 2-6 


Section 4: Credited Service; Forfeiture; Reinstatement ...................................................................... 2-1 to 2-2 
Section 5: Combining Credited Service .............................................................................................. 2-2 to 2-3 
Section 6: Credit for Certain Qualifying Service; Conditions; Crediting 

Payment Under Subsection (1)(c) ...................................................................................... 2-3 to 2-4 
Section 7: Credited Service: Election to Purchase Not More Than 5 Years 

of Credited Service ........................................................................................................................ 2-5 
Section 8: Election to Come Under Reciprocal Retirement Act .................................................................... 2-6 
Section 9: Credited Service for Periods of Active Duty; Conditions ............................................................. 2-6 


ARTICLE III. RETIREMENT REQUIREMENTS AND BENEFIT PROGRAM ........... 3-1 to 3-34 


Section 10: Retirement; Requirements; Allowance; Benefit Programs ................................................ 3-1 to 3-4 
Section 11: Adoption for Temporary Period of Benefit Programs or Combination 

of Benefit Programs; Contents of Resolution or Administrative Order; 

Retirement Under Section 10 During Temporary Period; Limitation ................................ 3-4 to 3-5 
Section 12: Vested Former Member; Requirements ............................................................................. 3-5 to 3-6 
Section 13: Benefit Program A; Retirement Allowance .................................................................................. 3-6 
Section 14: Benefit Program B; Retirement Allowance ....................................................................... 3-6 to 3-7 
Section 15: Benefit Program B-1; Retirement Allowance ............................................................................... 3-7 
Section 16: Benefit Program B-2; Retirement Allowance ............................................................................... 3-7 
Section 16A: Benefit Program B-3; Retirement Allowance ............................................................................... 3-7 
Section 16B: Amount of Retirement Allowance Under Benefit Program B-4 ........................................ 3-7 to 3-8 
Section 17: Benefit Program C-New and C-Old; Retirement Allowance ........................................................ 3-8 
Section 18: Benefit Program C-1 New and C-1 Old; Retirement Allowance .................................................. 3-8 
Section 19: Benefit Program C-2; Adoption; Retirement Allowance .............................................................. 3-9 


MERS Plan Doc: Revised as of May 13, 2009 i 

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Section 19A: 
Restated Benefit Program DC; Adoption; Contribution; Distribution ............................. 3-9 to 3-13 


Section 19B: 
Benefit Program H; Adoption; Contribution; Distribution ............................................ 3-13 to 3-18 


Section 20: 
Benefit Program E; Adoption or Readoption; Effective Date; 
Adjustment Date; Adjustment Factor; Prohibition......................................................... 3-18 to 3-19 

Section 21: 
Benefit Program E-1; Adoption or Readoption; Effective Date; 

Applicability; Adjustment Dates; Maximum Cumulative Adjustment 

Limitation; Base Amount of Retirement Allowance; Adjustment Factor ...................... 3-19 to 3-20 


Section 22: 
Benefit Program E-2; Adoption; Effective Date; Applicability; 

Adjustment Dates; Maximum Cumulative Adjustment Limitation; 

Base Amount of Retirement Allowance; Adjustment Factor ......................................... 3-20 to 3-21 


Section 23: 
Forms of Payment; Election; Naming of Survivor Beneficiary; 

Failure to Make Timely Election; Amount of Retirement 

Allowance; Election if Member Married at Retirement Allowance 

Effective Date; Signature of Spouse; Effect on Election if Retirant 

Divorced From Spouse Named as Survivor Beneficiary ............................................... 3-21 to 3-24 


Section 23A: 
Adoption of Benefit Program RS50%; Specifying Effective 

Date of Change in Coverage; Duration and Amount of Payment 

to Surviving Spouse; “Surviving Spouse” Defined ..................................................................... 3-24 


Section 23B: 
Adoption of Benefit Program PRO (Post-Retirement Option); 

Changing Form of Payment or Survivor Beneficiary Designation 

After Retirement; Effective July 1, 2009 ........................................................................... 3-25-3-26 


Section 24: 
Retirement of Incapacitated Member; Conditions; Medical 

Examinations; Effective Date of Disability Retirement; 

Amount of Disability Retirement Allowance; Exceptions ............................................. 3-26 to 3-27 


Section 25: 
Disability Retirant Under Age 60; Periodic Medical Examination; 

Suspension, Revocation, or Discontinuance of Disability Pension; 

Conditions to Restoration of Terminated Disability Retirant’s Actual 

Credited Service; Service Not Credited for Period of Disability; 

Terminated Disability Retirant as Vested Former Member ........................................... 3-27 to 3-28 


Section 26: 
Conditions to Payment of Retirement Allowance for Life to Surviving Spouse; 

Commencement and Amount of Payment; Conditions to Payment of Retirement 

Allowance to Surviving Child, Restriction; Termination and Amount of 

Surviving Child’s Retirement Allowance; Presumptions .............................................. 3-28 to 3-29 


Section 27: 
Death Resulting From Injury or Disease Arising Out of and in Course of 
Duty; Additional Provision Applicable to Section 26 .................................................... 3-29 to 3-30 

Section 27A: 
Remarriage of Surviving Spouse ................................................................................................ 3-30 


Section 28: 
Contingent Survivor Beneficiary ................................................................................... 3-30 to 3-31 


Section 29: 
Provisions Applicable During Period Between Effective Date of Disability 

Retirement Allowance and Date Disability Retirant Attains Age 60 or Where 

Adopted by Resolution, the Age for Age and Service Retirement ................................ 3-32 to 3-33 


Section 30: 
Commencement, Termination, and Change in Retirement Allowance ....................................... 3-33 


Section 31: 
Employment by Participating Municipality or Court; Special Conditions ................................. 3-34 


MERS Plan Doc: Revised as of May 13, 2009 
ii 

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ARTICLE IV. CONTRIBUTIONS .................................................................................................... 4-1 to 4-3 


Section 32: 
Contribution Programs .................................................................................................................. 4-1 


Section 33: 
Contribution Program P ..................................................................................................... 4-1 to 4-2 


Section 34: 
Difference Between Retirant’s Accumulated Contributions and Aggregate 
Amount of Retirement Allowance Payments Made; Payment ...................................................... 4-2 

Section 35: 
Payment of Accumulated Contributions ....................................................................................... 4-3 


ARTICLE V. RETIREMENT BOARD ADMINISTRATION ............................................ 5-1 to 5-13 


Section 36: 
Retirement Board; Creation; Board as Public Corporation; Powers and 
Duties; Administrative Functions; Membership; Rules of Procedure; 
Record of Proceedings; Quorum; Voting; Term of Office; Oath; Expenses; 
Absence of Member from Work; Vacancy; Chairperson and Chairperson 
Pro tem; Chief Executive Officer [MCL 38.1536] ............................................................ 5-1 to 5-4 

Section 36A: 
Denial of Benefits; Hearing Process; Appeal to Retirement Board .............................................. 5-4 


Section 36B: 
Indemnification ............................................................................................................................. 5-4 


Section 37: 
Audit Report................................................................................................................................. 5-5 


Section 38: 
Experience Tables; Data and Information; Actuarial Operation and 
Investigations ............................................................................................................................... 5-5 

Section 39: 
Retirement Board as Trustee of Money and Other Assets; Investments; 
Counsel; Purpose of Investments; Discretionary Authority [MCL 38.1539] ............................... 5-5 

Section 40: 
Prohibited Conduct [MCL 38.1540] ............................................................................................. 5-6 


Section 41: 
Election to Become Participating Municipality; Vote; Specifying Effective 
Date of Participation and Applicable Benefit and Contribution Programs; 
Establishment of Benefit and Contribution Program Coverage Classifications; 
Certifications of Participation; Conditions to Participation .......................................................... 5-6 

Section 41A: 
Election to Become Participating Court; Administrative Order; Resolution; 
Specifying Effective Date of Participation and Applicable Benefit and 
Contribution Programs; Classifications; Certification of Participation; 
Conditions to Participation ............................................................................................................ 5-7 

Section 42: 
Actuarial Determination of Contribution Requirements ............................................................... 5-7 


Section 43: 
Election to Change Benefit and Contribution Programs; Vote; Specifying Effective 
Date of Change in Coverage and Applicable Benefit and Contribution Programs; 
Coverage Classification and Certification Conditions; Accrued Benefit Not 
Reduced by Change; Certification of Determination; Actuarial Determination of 
Contribution Requirements ........................................................................................................... 5-8 

Section 43A: 
Election of Participating Court to Change Benefit and Contributions Programs; 
Administrative Order; Resolution; Specifying Effective Date of Change in Coverage 
and Applicable Benefit and Contribution Programs; Coverage Classification and 
Certification Conditions; Accrued Benefit Not Reduced by Change; Certification 
of Determination; Actuarial Determination of Contribution Requirements ...................... 5-8 to 5-9 

Section 43B: 
Collective Bargaining Agreements; Benefit Modifications; Extension 
of Modified Benefits to Non-Bargaining Groups ......................................................................... 5-9 

MERS Plan Doc: Revised as of May 13, 2009 
iii 

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Section 43C: 
Fiscal Responsibility: Benefit Adoption Eligibility Requirements Eff. July 1, 2006 ...... 5-9 to 5-10 

Section 44: 
Election to Terminate Participation; Vote; Certification of Determination; 

Effective Date of Termination of Participation; Effect of Termination; 

Disposition of Balance in Reserve ................................................................................. 5-10 to 5-11 


Section 44A: 
Election of Participating Court to Terminate Participation; Vote, Certification 

of Determination; Effective Date of Termination of Participation; 

Effect of Termination; Disposition of Balance in Reserve ............................................ 5-11 to 5-12 


Section 45: 
Annual Meeting; Selection of Members to Retirement Board; Transaction of 

Business; Notice of Meeting; Certification of Delegates; Conduct of Election; 

Nominating Procedures; Referendum [MCL 38.1545].................................................. 5-12 to 5-13 


ARTICLE VI. FUNDING AND RESERVES .......................................................................... 6-1 to 6-5 


Section 45A: 
Funding Objective of Retirement System; Contribution Requirement; Notice 
and Payment of Contribution Obligation; Interest and Penalty Charge ........................................ 6-1 

Section 46: 
Reserve for Employee Contributions; Subaccounts; Deduction of Contributions 

from Compensation of Member; Consent and Agreement to Deduction; Discharge 

and Acquittance of Claims and Demands; Certification of Compensation Paid; 

Payment of Aggregate Amount of Contributions to Retirement System; Remittance 

of Member Contributions; Interest and Penalty Charge..................................................... 6-1 to 6-2 
Section 46A: Reserve For Defined Contribution Plan ........................................................................................ 6-2 
Section 46B: Transfers of Excess Assets to Reserve for Defined Contribution Plan ......................................... 6-2 
Section 47: Reserve for Employer Contributions and Benefit Payments; Subaccounts .................................. 6-3 
Section 48: Reserve for Retired Benefit Payments, Subaccounts .................................................................... 6-3 
Section 49: Reserve for Excess Casualty Experience; Transfers; Stop Loss Program ......................... 6-3 to 6-4 
Section 50: Reserve for Expenses and Undistributed Income; Transfer; 


 Contingency Reserves ................................................................................................................... 6-4 
Section 51: Expenses for Administration of Retirement System;

 Payment ........................................................................................................................................ 6-5 
Section 52: Allocation of Undistributed Investment Income ........................................................................... 6-5 


ARTICLE VII. MISCELLANEOUS ........................................................................................ 7-1 to 7-6 


Section 53: 
Rights Neither Subject to Process of Law Nor Assignable; Exceptions; Limitation; 

Right of Setoff; Transfers of Money and Assets to Another Retirement System ......................... 7-1 
Section 54: Correction of Errors in Records; Recovery of Overpayments; Making up 

 Underpayments ............................................................................................................................. 7-1 
Section 55: Intent; Retirement System as Qualified Pension Plan and Trust as Exempt 

 Organization; etc. ............................................................................................................... 7-2 to 7-5 
Section 55A: Qualified Excess Benefit Arrangement............................................................................... 7.5 to 7-6 
Section 56: Severability .................................................................................................................................. 7-6 
Section 57: Repeal .......................................................................................................................................... 7-6 


MERS Plan Doc: Revised as of May 13, 2009 
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ARTICLE VIII. ESTABLISHMENT OF 401(h) ACCOUNT FOR MERS PARTICIPATING 

EMPLOYERS ........................................................................................................ 8-1 to 8-6 


Section 60: Authorization and Establishment ........................................................................................... 8-1 
Section 61: Defined Terms ....................................................................................................................... 8-1 
Section 62: Section 401(h) Account Participation .................................................................................... 8-1 
Section 63: Mandatory Terms......................................................................................................... 8-2 to 8-4 
Section 64: Optional Terms ............................................................................................................ 8-4 to 8-6 


APPENDIX 

Procedure for Review of Formal Requests for Changes to MERS Plan Document .............................................. A-1 
Former Section 38.1506 ........................................................................................................................................ B-1 
Former Section 38.1509 ........................................................................................................................................ B-2 
Former Section 19A ................................................................................................................................... B-3 to B-5 
-END -


MERS Plan Doc: Revised as of May 13, 2009 v 

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MUNICIPAL EMPLOYEES' RETIREMENT 
SYSTEM OF MICHIGAN 
PLAN DOCUMENT 


PA 220 of 1996 provided the Municipal Employees’ Retirement System with the power to establish 
additional retirement system provisions including, but not limited to, defined benefit and defined contribution 
programs for its participating municipalities and participating courts. 

The Board of the Municipal Employees’ Retirement System of Michigan approves: 

ARTICLE I. GENERAL PROVISIONS. 

Sec. 1. 
Short Title. [MCL 38.1501] 

This act [1984 PA 427, as amended by 2004 PA 490] shall be known and may be cited as the 
“municipal employees retirement act of 1984.” [This Plan Document shall be known and may be cited as the 
"Municipal Employees’ Retirement System Plan Document of 1996." The Plan shall be effective commencing 
October 1, 1996. This Plan includes all defined benefit provisions in effect as of 12:01 a.m. on August 15, 1996 
pursuant to 1996 PA 220, sec. 36(2)(a), sec. 38.1536 (2)(a) of the Michigan Compiled Laws.] 

History: 1984 PA 427, Eff. Jan. 2, 1985, and 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996. 

Note 1: 1996 PA 220, enacting section 2, repealed effective August 15, 1996, the majority of the provisions of the 
Municipal Employees Retirement Act of 1984, except for 9 sections: section 1, MCL 38.1501; sections 2-2c, MCL 
38.1502-1502c; section 36, MCL 38.1536; section 39, MCL 38.1539; section 40, MCL 38.1540; and section 45, MCL 
38.1545. 

Note 2: 
Bracketed text added. 

Note 3: On July 8, 1997, the Internal Revenue Service issued its Letter of Favorable Determination that the Plan 
Document of 1996 conforms to the provisions of the Internal Revenue Code applicable to governmental plans. . 

Note 4: On June 15, 2005, IRS issued its Letter of Favorable Determination, which applies to all Plan amendments 
made by the Board through November 10, 2004. 

Sec. 2. 
Meanings of Words and Phrases. [MCL 38.1502] 

For the purposes of this Act [and Plan], the words and phrases defined in sections 2A through 2C have 
the meanings ascribed to them in those sections. 

History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996; see Sec. 1, Note 1 of this Plan. 

Sec. 2A. Definitions; A through L. [MCL 38.1502a.] 

(1) 
"Accumulated balance" means the total balance in a member's, vested former member's, or 
beneficiary's individual account under Benefit Program DC or the defined contribution 
component of Benefit Program H. 
MERS Plan Doc: Revised as of May 13, 2009 
1-1 

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(2) 
"Accumulated contributions" means the sum of all amounts credited to a member's individual 
account in the reserve for employee contributions. 
(3) 
"Beneficiary" means an individual who is being paid or who has entitlement to the future 
payment of a retirement allowance or a return of contributions on account of a reason other than 
the individual's membership in the retirement system. 
(4) 
"Certification date" means August 15, 1996. 
(5) 
"Chief judge" means the chief judge of a judicial circuit court, a judicial district court, or a 
judicial probate court as provided in the Revised Judicature Act of 1961, 1961 PA 236, MCL 
600.101 to 600.9948. 
(6) 
"Compensation" means the salary or wages paid a member for personal services rendered the 
member's participating municipality or participating court while a member of the retirement 
system. Salary and wages shall include longevity pay, overtime pay, shift differentials; pay for 
periods of absence from work by reason of vacation, holiday, and sickness; deferred 
compensation amounts under deferred compensation programs recognized by the board, 
including premiums for annuities and permanent life insurance policies that are transferred to 
the ownership of the member upon retirement; worker's compensation weekly benefits if the 
participating municipality or participating court reports the worker's compensation benefit to the 
retirement system; and items of a similar nature that are recognized as compensation by the 
board. Compensation does not include any remuneration or reimbursement not specifically 
described in this subsection or recognized by the board, such as allowances for clothing, 
equipment, cleaning, and travel; reimbursement of expenses, bonuses; termination pay; 
severance pay; payments in consideration of unused sick leave; the value of fringe benefits; and 
items of remuneration that are the basis of a potential or actual benefit from another retirement 
program. If the participating municipality or participating court has adopted Benefit Program 
DC, compensation equals the Medicare taxable wages as reported by the employer on the 
member's federal form W-2, wage and tax statement. 
(7) 
"Direct rollover" means a payment by the retirement system to the eligible retirement plan 
specified by the distributee. 
(8) 
"Distributee" includes a member or vested former member. Distributee also includes the 
member's or vested former member's surviving spouse or the member's or vested former 
member's spouse or former spouse under an eligible domestic relations order, with regard to the 
interest of the spouse or former spouse. 
(9) 
Beginning January 1, 2002, except as otherwise provided in this subsection, "eligible 
retirement plan" means the following types of plans established under the listed sections of 
the Internal Revenue Code: 
(a) 
a qualified trust described in section 401(a); 
(b) 
an annuity plan described in section 403(a); 
(c) 
a tax-sheltered annuity described in section 403(b); 
(d) 
an individual retirement account described in section 408(a); 
(e) 
an individual retirement annuity described in section 408(b); 
MERS Plan Doc: Revised as of May 13, 2009 
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(f) 
a Roth IRA individual retirement account described in section 408A; and 
(g) 
a deferred compensation plan under section 457(b) that is maintained by a state, 
or an agency or instrumentality of a state, a political subdivision of a state, or an 
agency or instrumentality of a political subdivision of a state, 
that accepts the distributee's eligible rollover distribution. However, in the case of an eligible 
rollover distribution to a surviving spouse on or before December 31, 2001, an eligible 
retirement plan means an individual retirement account or an individual retirement annuity). 

(10) 
Beginning January 1, 2002, "eligible rollover distribution" means a distribution of all or any 
portion of the balance to the credit of the distributee. Eligible rollover distribution does not 
include any of the following: 
(a) 
A distribution made for the life or life expectancy of the distributee or the joint lives or 
joint life expectancies of the distributee and the distributee's designated beneficiary. 
(b) 
A distribution for a specified period of 10 years or more. 
(c) 
A distribution to the extent that the distribution is required under section 401(a)(9) of 
the Internal Revenue Code. 
(d) 
The portion of any distribution that is not includable in federal gross income, 
determined without regard to the exclusion for net unrealized appreciation with respect 
to employer securities; provided, that any portion of a distribution that is not 
included in federal gross income may be an eligible rollover distribution for purposes 
of a rollover to (1) an eligible retirement plan listed in subsection (9)(a) or (b) 
provided that the plan is a defined contribution plan that will separately account for the 
distribution, including the taxable and non-taxable portions of the distribution, and that 
the rollover is a direct trustee-to-trustee transfer, or (2) an eligible retirement plan listed 
in subsection 9(d) or (e). 
(11) 
"Final average compensation" means any of the following: 
(a) 
One-fifth of the aggregate amount of compensation paid a member during the period of 
5 consecutive years of the member's credited service in which the aggregate amount of 
compensation paid is highest, known as FAC-5. If the member has less than 5 years of 
credited service, final average compensation means the aggregate amount of 
compensation paid the member divided by the member's credited service. A member 
who has credited service in force with more than 1 participating municipality or 
participating court shall have a separate final average compensation computed based on 
the member's compensation record with each participating municipality and 
participating court. 
(b) 
If the participating municipality or participating court has adopted benefit program 
FAC-3, l/3 of the aggregate amount of compensation paid a member during the period 
of 3 consecutive years of the member's credited service in which the aggregate amount 
of compensation paid is highest. If the member has less than 3 years of credited 
service, final average compensation means the aggregate amount of compensation paid 
the member divided by the member's credited service. A member who has credited 
service in force with more than 1 participating municipality or participating court shall 
have a separate final average compensation computed based on the member's 
compensation record with each participating municipality or participating court. 
MERS Plan Doc: Revised as of May 13, 2009 
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(c) 
For a member who is a judge of the district court, the recorder's court of the city of 
Detroit, or the circuit court, and has converted a portion or all of his or her state salary 
standardization payment as provided for in section 504 of the Judges Retirement Act of 
1992, Act No. 234 of the Public Acts of 1992, being section 38.2504 of the Michigan 
Compiled Laws, as an addition to his or her state base salary under Act No. 234 of the 
Public Acts of 1992, being sections 38.2101 to 38.2670 of the Michigan Compiled 
Laws, the difference between the figure that would otherwise be used under subdivision 
(a) or (b) to compute the member's retirement benefits, and the amount of the state 
salary standardization payment converted. 
(12) 
"Governing body" means the representative legislative body of a municipality, or the 
administrative board or commission of a public corporation or instrumentality that does not 
have a representative legislative body. 
(13) 
"Internal Revenue Code" means the United States Internal Revenue Code of 1986. 
(14) 
"Judicial circuit court" means a judicial circuit of the circuit court as provided in section 11 of 
article VI of the state constitution of 1963. 
(15) 
"Judicial district court" means a judicial district of the district court as provided in section 8101 
of the Revised Judicature Act of 1961, 1961 PA 236, MCL 600.8101. 
(16) 
“Judicial employee" means an individual who is paid compensation for personal service 
rendered for a participating court. Judicial employee does not include anyone who is a 
municipal employee under section 2B(3) or anyone who is specifically excluded as a municipal 
employee under section 2B(3). 
(17) 
"Judicial probate court" means a county probate court or probate court district as provided in 
section 15 of article VI of the state constitution of 1963. 
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996; see Sec.1, Note 1 of this Plan. 

Note 1: The 1996 PA 220 amendments are reflected in text of subsections (4), (5), (12), (14), (15) and (17). Bracketed 
text in (4) added. 

Note 2: Bold text in subsections (9) and (10) to comply with federal law changes (the Economic Growth and Tax Relief 
Reconciliation Act of 2001); by Board action of May 8, 2002, with retroactive effective date of January 1, 2002. 

Note 3: Changes in subsection (9) (language deleted) and (10) (changes underlined) reflect Board amendments on 
August 14, 2002, effective January 1, 2002, pursuant to the provisions of the Economic Growth and Tax Relief 
Reconciliation Act of 2001. 

Note 4: Bold text changes in subsections (4), (5) and (15) pursuant to 2004 PA 490, which took immediate effect 
December 27, 2004, amending this section 2A (and sections 2B and 36). 

Note 5: Bold text in subsection (1) added March 14, 2006, with immediate effect: all provisions then amended create 
the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Note 6: In subsection (9), insertion of italicized new language in subsection (f), and former (f) re-lettered as 
(g), by Board action of January 14, 2009 with immediate effect. 

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Sec. 2B. Definitions; M through O. [MCL 38.1502b.] 

(1) 
"Member" means an individual [municipal employee or judicial employee] who is included in 
the membership of the retirement system as determined by the Retirement Board. 
(2) 
"Membership service" means personal service rendered a participating municipality or 
participating court while a member of the retirement system. 
(3) 
"Municipal employee" means an individual who is paid compensation for personal services 
rendered for a participating municipality. Payment of compensation by a hospital, board, 
commission, public corporation, or instrumentality created by a municipality is considered 
payment by the municipality. Municipal employee does not include any of the following: 
(a) 
The mayor, village president, or a member of the governing body of a participating 
municipality, unless the individual files a written application for membership with the 
retirement system. By written election in the form prescribed by MERS, and signed 
by the member’s spouse, a member whose membership exists by virtue of having 
filed an application for membership under this subsection (3)(a) may irrevocably 
elect to be excluded from membership (and any membership rights or benefits 
arising from service under this subsection) under the following conditions: 
(i) 
The election is made while the member occupies a position under this 
subsection (3)(a). 
(ii) 
For the period in which the member has occupied a position under this 
subsection (3)(a), the member shall be paid the member’s accumulated 
contributions, if any, and all credited service for the period shall be 
forfeited in all cases. 
(iii) 
The individual shall not again become a member of the retirement system 
on account of occupying a position under this subsection (3)(a) for the 
same municipality. 
(iv) 
The individual’s forfeited credited service and any service rendered the 
participating municipality during any time the individual was excluded 
from membership shall never be reinstated or credited to the individual 
under Sections 4 or 6, or for any other purpose under the Plan Document. 

(b) 
An individual who is employed on a basis that exempts the participating municipality 
from the withholding provisions of the internal revenue code. 
(c) 
An individual, except a county elected official, who is wholly paid on a fee basis. 
(d) 
An individual who is an active member as of January 1, 1983, of the State of Michigan 
probate judges retirement system created by the former Probate Judges Retirement Act, 
former Act No. 165 of the Public Acts of 1954, being former sections 38.901 to 38.933 
of the Michigan Compiled Laws and who continued in service as a probate judge under 
the successor act, the Judges' Retirement Act of 1992, 1992 PA 234, sections 38.2101 to 
38.2670 of the Michigan Compiled Laws. 
(e) 
A person, not regularly employed by the participating municipality, who is employed 
by the municipality through participation in a program established pursuant to the Job 
Training Partnership Act, Public Law 97-300, 96 Stat. 1322. In addition, a person 
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described in this subdivision shall not receive service credit for the employment 
described in this subdivision even though the person subsequently becomes or has been 
a member of the retirement system. 

(f) 
A person, not regularly employed by the participating municipality, who is employed 
by the municipality through participation in a program established pursuant to the 
Michigan opportunity and skills training program first provided for under sections 12 to 
23 of Act No. 259 of the Public Acts of 1983. In addition, a person described in this 
subdivision shall not receive service credit for the employment described in this 
subdivision even though the person subsequently becomes or has been a member of this 
retirement system. 
(g) 
A person, not regularly employed by the participating municipality, who is employed 
by the municipality through participation in a program established pursuant to the 
Michigan community service corps program first provided for under sections 25 to 35 
of Act No. 246 of the Public Acts of 1984. In addition, a person described in this 
subdivision shall not receive service credit for the employment described in this 
subdivision even though the person subsequently becomes or has been a member of this 
retirement system. 
(h) 
A person, not regularly employed by the participating municipality, who is employed 
by the municipality to administer a program described in subdivision (e), (f), or (g) shall 
not be a member of this retirement system. 
(i) 
An individual who is, on the effective date of the municipality's or court's participation 
under this Plan or the predecessor Act, a member of another retirement system that is 
sponsored by the participating municipality or participating court if that individual 
remains as a member of the other retirement system. 
(4) 
"Municipality" means 1 or more of the following: 
(a) 
A county, county road commission, city, village, or township. 
(b) 
A public corporation or instrumentality established by 1 or more counties, cities, 
villages, or townships. 
(c) 
A public corporation or instrumentality charged by law with the performance of a 
governmental function and whose jurisdiction is coextensive with 1 or more counties, 
cities, villages, or townships. 
(d) 
A political subdivision located in this state or located in this and another adjacent 
state of the United States including, but not limited to, the entities named in 
subdivision (a), (b), or (c), or any combination of these units. 
(e) 
A political subdivision located in this state and a metropolitan government 
borough, or other political subdivision of the province of Ontario, an agency of the 
United States, or a similar entity of adjacent states of the United States and the 
province of Ontario. 
(f) 
A state university, community college, or junior college whose employees are not 
public school employees who are members under the public school employees 
retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408. 
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(g) 
Any municipal corporation as defined in section 1(a) of 1951 PA 35, MCL 124.1, or 
other governmental entity that is eligible to join the retirement system and 
participate in any program under this act, as determined by the retirement board. 
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996; see Sec. 1, Note 1 of this Plan. 

Note 1: 
The 1996 PA 220 amendments are reflected in text of subsections (1) and (4). Bracketed text in (1) added. 

Note 2: 
Bold text in subparagraph 3(a) added by Board action of February 25, 1998, with immediate effect. 

Note 3: Bold text changes in subsections (4) pursuant to 2004 PA 490, which took immediate effect December 27, 2004, 
amending this section 2B (and sections 2A and 36). 

Sec. 2C. Definitions; P through Z. [MCL 38.1502c.] 

(1) 
"Participating court" means a judicial circuit court, a judicial district court, or a judicial probate 
court that has elected to be governed by the provisions of this [Plan or the predecessor] Act. 
(2) 
"Participating municipality" means a municipality that has elected to be governed by the 
provisions of: [(a) this Plan; or (b)] this Act [1984 PA 427, or its predecessor 1945 PA 135]. 
Two or more municipalities may enter into an agreement with each other and the retirement 
system to participate as a combined unit. 
(3) 
"Prior service" means certified personal service rendered a municipality or a judicial circuit 
court, judicial district court, or judicial probate court by a member prior to the date the 
municipality or judicial circuit court, judicial district court, or judicial probate court became a 
participating municipality or participating court. The participating municipality or participating 
court shall certify to the retirement system, in writing, the amount of prior service to be credited 
each member in its employ. The participating municipality or participating court may limit the 
period of certified prior service to either a percentage of the member's total period of prior 
service or a stated number of years. Certification of prior service shall be made prior to the 
retirement of a member, in the form and at the time prescribed by the Retirement Board. Prior 
service credit shall not be recognized for the purpose of calculating a retirement allowance 
under this Plan unless all of the following requirements are met: 
(a) 
The municipality or court transfers to the retirement system assets from the preceding 
qualified plan and/or other source equal to at least fifty percent (50%) of prior 
service accrued liabilities (as determined under MERS assumptions). Should 
assets actually transferred be less than fifty percent (50%) of such liabilities, then 
all prior service recognized shall be in strict proportion to the assets transferred. 
(b) 
Unfunded actuarial accrued liabilities, if any, arising from prior service shall be 
funded over a 30-year amortization schedule, for initial actuarial valuations 
requested before January 1, 2007. Unfunded actuarial accrued liabilities, if any, 
arising from prior service shall be funded over a 25-year amortization schedule for 
initial actuarial valuations requested on or after January 1, 2007. Commencing 
January 1, 2011, the 25-year amortization schedule shall become 20-year 
amortization. 
(c) 
In the event any alteration of this section 2C(3) is made or occurs, under section 
43B of the Plan Document concerning collective bargaining or under any other 
plan provision or law, MERS prior service shall not be recognized, other than in 
accordance with this section. 
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(4) 
"Public corporation" means the retirement system on and after the certification date, which 
corporation is an instrumentality of the participating municipalities and participating courts. 
(5) 
"Retirant" means an individual who is being paid a retirement allowance on account of the 
individual's membership in the retirement system. 
(6) 
"Retirement allowance" means an annual amount payable in monthly installments by the 
retirement system, whether payable for a temporary period or throughout the future life of a 
retirant or beneficiary. 
(7) 
"Retirement benefit" means a retirement allowance, refund of accumulated contributions, or 
amounts paid to a distributee. The term includes distributions under section 19A, Benefit 
Program DC, distributions under section 19B, Benefit Program H, and distributions under 
section 10(6), Benefit Program DROP+. The term does not include any post-retirement or 
other ancillary benefit or payment, which may become available under the Plan Document or 
the retirement system. 
(8) 
"Retirement board" means the retirement board provided for in section 36 to administer the 
retirement system. 
(9) 
"Retirement system" or "system" means the municipal employees retirement system established 
by former Act No. 135 of the Public Acts of 1945, and continued and restated by this Act [1984 
PA 427 and the Plan Document on and after the certification date]. 
(10) 
"Vested former member" means a person who meets the requirements of section 12. 
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996; see Sec. 1, Note 1 of this Plan. 

Note 1: The 1996 PA 220 amendments are reflected in text of subsections (1), (2), (4), (8) and (9). Bracketed text in (1) 
and (2) and (9) added. 

Note 2 Former text at end of section 5(1) inserted verbatim in subsection (3) as last full sentence preceding (3)(a), and 
(3)(a)-(b), per Board action of May 20, 1998, with immediate effect. 

Note 3: Bold text in subsection (3)(a)-(b) revised, and (3)(c) added, by Board action of September 28, 1999, to be 
effective January 1, 2000. 

Note 4: Bold text in subsection (7) added by Board action of May 14, 2003, with immediate effect, along with 
companion amendments to section 31(1) and 34, and addition of: section 10(6), section 11(1)(p) and 11(2)(e). 

Note 5: Bold underlined text in subsection (3)(b) added by Board action of March 14, 2006, with immediate effect. See 
Section 43C(4), also approved on March 14, 2006. 

Note 6: Bold underlined text in subsection (7) added March 14, 2006, with immediate effect: all provisions then 
amended create the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 
12(1)(d) and (2), 19B added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and 
(4), 30(1), 32(5), 39(1), 44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Note 7: Italicized third sentence added to section 2C(3)(b), as companion amendment to section 43C, both by Board 
action of September 18, 2007, to take effect January 1, 2008. 

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Sec. 3. 
Membership. 

(1) 
Each municipal employee of a participating municipality and each judicial employee of a 
participating court, who is employed in a position regularly requiring at least 10 days or a 
specified number of hours of work in a calendar month, shall be a member of the retirement 
system unless excluded from membership in accordance with subsection (2). A day of work or 
the specified number of hours of work in a calendar month shall be defined by resolution of the 
governing body of each participating municipality or by administrative order of the chief judge 
of each participating court. The resolution or administrative order shall be uniformly applicable 
to all members employed by the participating municipality or participating court who are 
covered by the same benefit program coverage classification. Benefit program coverage 
classification shall be those established by the Retirement Board pursuant to the provisions of 
sections 41 and 41A. A certified copy of the resolution or administrative order shall be filed 
with the Retirement Board within 10 days after adoption or issuance. 
(2) 
A participating municipality or participating court may exclude temporary municipal employees 
or judicial employees from membership in the retirement system. The participating 
municipality or participating court shall notify, in writing, each temporary municipal employee 
or judicial employee excluded from membership. A municipal employee or judicial employee 
shall not be designated a temporary municipal employee or judicial employee if employed in a 
position normally requiring at least 6 or more whole months not to exceed 12 whole months 
of work. Exclusion of a temporary municipal employee or judicial employee from membership 
shall be by resolution of the governing body of the participating municipality or by 
administrative order of the chief judge of the participating court. A certified copy of the 
resolution or administrative order shall be filed with the Retirement Board within 10 days after 
adoption or issuance. 
(3) 
A municipal employee or judicial employee who is an active member of another retirement 
system shall be a member only for the portion of the member's compensation that is not 
considered compensation under the other retirement system. 
(4) 
A municipal employee or judicial employee shall cease to be a member upon termination of 
employment by a participating municipality or participating court, or upon ceasing to be 
employed in a position regularly requiring at least 10 days or a specified number of hours of 
work in a calendar month, as provided in subsection (1), or upon being designated a temporary 
municipal employee or judicial employee, except as provided in subsection (5). A member who 
has been laid off by a participating municipality or participating court and whose layoff status 
continues for a period of at least 30 days may make written request to the retirement system for 
a return of the member's accumulated contributions. Payment of the accumulated contributions 
shall constitute termination of membership in the retirement system. 
(5) 
A member who is transferred to the employ of the state, another municipality, or another 
judicial circuit court, judicial district court, or judicial probate court by reason of a function of 
the member's participating municipality or participating court being transferred to the state, the 
other municipality, or the other judicial circuit court, judicial district court, or judicial probate 
court shall remain a member of the retirement system, notwithstanding subsection (4), subject to 
the following conditions: 
(a) 
Service rendered the state, the other municipality, or the other judicial circuit court, 
judicial district court, or judicial probate court subsequent to the transfer and standing to 
the member's credit in a retirement system of the state, the other municipality, or the 
other judicial circuit court, judicial district court, or judicial probate court may be 
combined with the member’s credited service in this retirement system. The combined 
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credited service may be used only to meet the retirement or survivor benefit credited 
service requirements of this retirement system. 

(b) 
The amount of a retirement allowance that may become payable by this retirement 
system shall be computed on the basis of the member's credited service and final 
average compensation, and the benefit program applicable to the member, at the time of 
the member's transfer of employment. 
(c) 
The member may not retire prior to termination of all employment with the state, the 
other municipality, or the other judicial circuit court, judicial district court, or judicial 
probate court. 
(6) 
A member who is concurrently employed by 2 or more participating municipalities or 
participating courts shall remain a member upon termination of employment with 1 or more of 
the participating municipalities or participating courts if the remaining employment with 1 or 
more participating municipalities or participating courts satisfies the conditions of this section 
with regard to membership. Membership with respect to the participating municipalities or 
participating court, with whom the member terminated employment shall terminate. The 
member shall have the rights of a terminated member in all respects with regard to service 
rendered the participating municipalities or participating court, with whom employment has 
terminated. 
(7) 
A member who is in receipt of worker's compensation weekly benefits on account of an 
employment-related injury shall continue to be a member and receive credited service until the 
earliest of termination of employment, retirement or death. 
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

Note 1: 
Former subsection (3), which permitted the chief executive officer of a participating municipality to be 

excluded from MERS membership, was repealed, and subsections (4)—(8) renumbered as (3)—(7), on May 12, 2004, 

with immediate effect. 

Note 2: Bold language in subsection (2) added by Board action of March 13, 2007, with immediate effect. 

End of Article I. 

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ARTICLE II. SERVICE CREDIT. 

Sec. 4. 
Credited Service; Forfeiture; Reinstatement. 

(1) 
Prior service and membership service to which a member is entitled, including periods during 
which a member is in receipt of worker's compensation weekly benefits, shall be credited to the 
member's individual service account. Service shall be credited in years and twelfths of a year. 
Not more than 1 year of credited service shall be credited a member on account of all service 
rendered to a participating municipality or participating court in any period of 12 consecutive 
months. Not more than 1/12 of a year of credited service shall be credited a member on account 
of all service rendered to a participating municipality or participating court in a calendar month. 
Credited service shall not be credited for any calendar month during which a member acquires 
less than 10 days or a specified number of hours of work, as defined by the member's 
participating municipality or participating court pursuant to section 3(1). Credited service shall 
not be credited to a member for any calendar month during which the member is covered by 
Benefit Program DC, except that periods of at least 12 months in which a participating 
municipality or participating court has made employer contributions on behalf of a 
member under MERS Benefit Program DC shall be counted towards satisfying the 
applicable vesting or service requirement under sections 10(1)(b) and 10(4). 
(2) 
All or a portion of an individuals' credited service shall be forfeited under the following 
conditions: 
(a) 
All credited service shall be forfeited if the individual incurs a break in membership of 
more than 240 consecutive months and is not a vested former member pursuant to 
section 12. 
(b) 
Credited service for which the individual has made member contributions shall be 
forfeited if the individual's accumulated contributions are paid to the individual, the 
individual's designated beneficiary, or the individual's legal representative. 
(3) 
Credited service forfeited for a reason other than a break in membership of more than 240 
consecutive months shall be reinstated in the member's service account if all of the following 
conditions are satisfied: 
(a) 
The forfeited credited service was acquired while the member was in the employ of the 
same participating municipality or participating court. 
(b) 
The member pays to the retirement system all accumulated contributions previously 
paid to the member plus compound interest from the date of payment to the member to 
the date of repayment to the retirement system. Payment shall be made within 5 years 
after the date the member reacquires membership in the retirement system on account 
of employment by, and prior to termination of employment with, the same 
participating municipality or participating court. However, a participating municipality 
may by resolution of its governing body, or a participating court may by administrative 
order of its chief judge, establish a written policy to extend beyond 5 years the period 
for payment required under this subdivision. The policy shall be uniformly applicable 
to all members employed by the participating municipality or participating court who 
are covered by the same benefit program coverage classification. Benefit coverage 
classifications are those established by the Retirement Board under section 41 or 41A. 
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(4) 
The rates of compound interest applicable to repayment of accumulated contributions shall be 
as determined by the Retirement Board. 
(5) 
Forfeited credited service acquired while a member was in the employ of another participating 
municipality or participating court shall not be reinstated under this section but shall be 
creditable subject to the requirements of section 6. 
(6) 
A participating municipality or court may provide for the conversion of service credit 
earned by part-time employees to the full-time equivalent upon a member’s promotion to 
full-time employment. The governing body must adopt the Uniform Resolution Defining 
Hours Per Month for Part-Time Employees and Service Credit Conversion Upon 
Promotion to Full-Time Status, the terms of which shall not be modified or altered as an 
express condition of its effectiveness. 
History: 1992 PA 63, Eff. May 22, 1992, and Plan Document of 1996. 

Note 1: 
Addition of subsection (6) by Board action of May 20, 1997, effective January 1, 1998. 

Note 2: 
Text of subparagraph (6)(a) revised by Board action of May 20, 1998, with immediate effect. 

Note 3: Bold text at end of subsection (1) added by Board action of August 23, 2000, with immediate effect as of 
October 1, 2000. See companion amendment to sections 10(1), 10(4), and 19A(12). 

Note 4: 
Former subsection (6) revised in its entirety by Board action of September 30, 2003, with immediate effect. 

Note 5: 
Bold text in subsection (2)(a) and (3), changing 180 months (15 years) to 240 months (20 years), to correspond 
with amendments made to sections 4 and 5 of the Reciprocal Retirement Act (1961 PA 88) by 2008 PA 502; 
and addition of bold text to subsection (3)(b); by Board action of March 11, 2009, all with immediate effect. 

Sec. 5. 
Combining Credited Service. 

(1) 
A member who has acquired credited service with more than 1 participating municipality or 
participating court, other than concurrently, may combine the separate amounts of credited 
service for the sole purpose of satisfying the retirement or survivor benefit service credit 
requirements of the retirement system. Credited service concurrently acquired in more than 1 
participating municipality or participating court may not be combined. Credited service of less 
than 1 year with a participating municipality or participating court may not be combined. [See 
Note 2 at end of this section]. 
(2) 
(a) A member who has acquired credited service for concurrent employment with more 
than 1 participating municipality or participating court may consolidate the member's 
credited service and compensation history under a single participating municipality or 
participating court if each of the following conditions is met: 
(i) 
Each of the affected participating municipalities files with the Retirement 
Board a resolution of its governing body and each of the affected participating 
courts files with the Retirement Board an administrative order of its chief judge 
outlining the terms of the credited service and compensation consolidation, 
including the transfer amounts, if any, between the affected participating 
municipalities' and participating courts' accounts in the reserve for employer 
contributions. 
(ii) 
Amounts to be transferred shall not be greater than the larger of (a) the 
accumulated contributions of the member whose credited service is being 
transferred; or (b) the actuarial present value of the retirement allowance 
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otherwise payable by the transferring participating municipality or participating 
court on the regular retirement date should the transfer not occur. 

The actuarial present value of the accrued benefit shall be determined based on 
the rate of return on the investment of present and future assets utilized by the 
Retirement Board at the time of such valuation (presently 8% as of December 
31, 2001), and the pre- and post-retirement life expectancies of participants 
based on the 1994 Group Annuity Mortality Table. 

(iii) 
Periods of concurrent credited service shall not result in more than one month 
of credited service for any one calendar month. 
(iv) 
After the consolidation of credited service and compensation, the member will 
no longer have credited service in force with the participating municipalities or 
participating courts which transferred credited service and compensation 
histories to another participating municipality or participating court. 
(b) 
If a member's periods of concurrent employment are consolidated, the member's 
compensation histories shall be combined, in order to calculate final average 
compensation and member contributions. 
(c) 
If a member's periods of concurrent employment are consolidated, the member's 
retirement or survivor benefits and member contributions shall be determined based on 
the benefit programs and member contribution programs adopted by the participating 
municipality or participating court which agrees to accept responsibility for the 
consolidated employment. 
(d) 
Each participating municipality or participating court utilizing this section shall 
establish a written policy to implement the provisions of this section to provide for its 
uniform application to all employees and former employees within the membership of 
the retirement system. This section shall not be applicable to any former member (or 
beneficiary of such member) in receipt of a retirement allowance based on the same 
credited service rendered for the participating municipality or participating court for 
which transfer is requested. 
History: 1993 PA 50, Eff. June 1, 1993, and Plan Document of 1996. 

Note 1: 
Bracketed text in subparagraph (2)(a)(ii) added to reflect Board action in 1994. 

Note 2: Language formerly found at end of subsection (1) concerning prior service and based on 1993 PA 50, section 
58, inserted verbatim as separate subparagraph in 2C(3) per Board action of May 20, 1998, with immediate effect. 

Note 3: Subsection (2)(a)(ii) (second paragraph) as amended by Board action of February 13, 2002, with immediate 
effect. See also section 55, note 2. 

Sec. 6. 
Credit for Certain Qualifying Service; Conditions; Crediting Payment under Subsection (1)(c). 

(1) 
The Retirement Board shall credit a member other than a member covered by Benefit Program 
DC, or Benefit Program H for qualifying service in the employ of the United States 
government, a state, or a political subdivision of a state, if all of the following conditions are 
satisfied. 
(a) 
The governing body of the participating municipality that employs the member adopts a 
resolution, or the chief judge of the participating court that employs the member issues 
an administrative order, requesting the Retirement Board to credit the member with a 
specific period of qualifying service and files a certified copy of the resolution or 
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administrative order with the retirement system within 10 days after the adoption or 
issuance. The resolution of the governing body or the administrative order of the chief 
judge shall be made or issued pursuant to a previously adopted written policy which 
provides for uniform applicability of the provisions of this section to all members 
employed by the participating municipality or participating court who are covered by 
the same benefit program coverage classification. Benefit program coverage 
classification shall be those established by the Retirement Board pursuant to the 
provision of section 41 or 41A. 

(b) 
The qualifying governmental service was not rendered prior to any break of 180 or 
more months in the member's employment by the United States government, a state, or 
a political subdivision of a state. 
(c) 
The member pays to the retirement system the amount the participating municipality or 
participating court may require of the member in consideration for the crediting of 
qualifying governmental service; any payment shall be credited to the member’s 
individual account in the reserve for employee contributions. The required 
payment, if any, shall not exceed the difference between the actuarial present value of 
potential benefits after crediting the specified period of qualifying service and the 
actuarial present value of potential benefits prior to crediting the specified period of 
qualifying service. The actuarial present value of potential benefits shall be calculated 
using the earliest retirement date assumption and experience assumptions used for the 
annual actuarial valuation. 
(2) 
For purposes of this section, service is qualifying if it is not and will not be recognized for the 
purpose of obtaining or increasing a benefit under another retirement system. A member may 
qualify service by making an irrevocable forfeiture of all rights in and to the actual or potential 
benefit from the other retirement system. 
(3) 
Service purchased under this section shall not be: 
(a) 
Credited until the member attains the vesting requirement in effect for the 
participating municipality or court; or 
(b) 
Used to satisfy the minimum years of credited service required to be a vested 
former member in the event of termination of membership. 
(4) 
For a member employed by a participating municipality or court as of July 1, 1997, who 
has service rendered before that date that was covered service under former sections 6 and 
9 of the Municipal Employees’ Retirement Act of 1984, former MCL 38.1506 and 38.1509 
as in effect on August 15, 1996, those provisions shall continue to apply to such members 
for covered service rendered before July 1, 1997. 
History: 1996 PA 220, Eff. August 15, 1996, and Plan Document of 1996. 

Note 1: Bold text in subparagraph (1)(c) inserted from former (4); added text in new (3), with (b) inserted from former 
(5); text of former (4) deleted; language in revised (4) modification of former (5) reflecting Board Plan interpretation of 
April 23, 1997; all changes by Board action of May 20, 1998, with immediate effect. 

Note 2: The former sections 6 and 9 referred to in subsection (4) are found in the Appendix to Plan Document 
following Article VII. Former section 6 is found at B-1, and former section 9 at B-2. 

Note 3: Bold text in subsection (1) added March 14, 2006, with immediate effect: all provisions then amended create 
the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

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Sec. 7. 
Credited Service: Election to Purchase Not More Than 5 Years of Credited Service. 

(1) 
The Retirement Board shall credit a member (other than a member covered by Benefit 
Program DC or Benefit Program H) with not more than 5 years of credited service, if each of 
the following conditions is satisfied: 
(a) 
The governing body of the participating municipality that employs the member adopts a 
resolution, or the chief judge of the participating court that employs the member issues 
an administrative order, requesting the Retirement Board to credit the member with a 
specific amount of credited service and files a certified copy of the resolution or 
administrative order with the retirement system within 10 days after adoption or 
issuance. The resolution of the governing body or the administrative order of the chief 
judge shall be made or issued pursuant to a previously adopted written policy which 
provides for uniform applicability of the provisions of this section to all members 
employed by the participating municipality or participating court who are covered by 
the same benefit program coverage classification. Benefit program coverage 
classifications shall be those established by the Retirement Board pursuant to the 
provisions of section 41 and 41A. 
(b) 
The member pays to the retirement system the amount the participating municipality or 
participating court may require of the member in consideration for the crediting of 
service; any payment shall be credited to the member's individual account in the 
reserve for employee contributions. The required payment, if any, shall not exceed 
the difference between the actuarial present value of potential benefits after crediting 
the specified amount of credited service and the actuarial present value of potential 
benefits prior to crediting the specified amount of credited service. The actuarial 
present value of potential benefits shall be calculated using the earliest retirement date 
assumption and the experience assumptions used for the annual actuarial valuation. 
(2) 
Service purchased under this section shall not be: 
(a) 
Credited until the member attains the vesting requirement in effect for the 
participating municipality or court; or 
(b) 
Used to satisfy the minimum years of credited service required to be a vested 
former member in the event of termination of membership. 
(3) 
The total credited service acquired by a member under this section, from all participating 
municipalities and participating courts, shall not exceed 5 years. 
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996. 

Note 1: Bold text in subparagraph (1)(b) inserted from former (2); added text in new (2), with (b) inserted from 
former (3); and former (4) and (5) renumbered as (3) and (4) respectively; by Board action of May 20, 1998, with 
immediate effect. 

Note 2: Deletion of former subsection (3), and renumbering of former (4) as (3), by Board action of November 13, 
2002, with immediate effect. 

Note 3: Bold text in subsection (1) added March 14, 2006, with immediate effect: all provisions then amended create 
the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a) 

MERS Plan Doc: Revised as of May 13, 2009 
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Sec. 8. 
Election to Come Under Reciprocal Retirement Act. 

A participating municipality or participating court which has elected to come under the provisions of the 
Reciprocal Retirement Act, Act No. 88 of the Public Acts of 1961, being sections 38.1101 to 38.1106 of the 
Michigan Compiled Laws, by resolution of its governing body, may make such provisions applicable to former 
members who left the employ of the participating municipality or participating court before the date the 
participating municipality or participating court elected to come under such provisions. Service shall not be 
recognized unless the member pays the retirement system withdrawn accumulated contributions applicable to 
such service, plus regular interest as provided by the Retirement Board from the date of withdrawal to the date 
of repayment. The amount shall be repaid within 2 years after the participating municipality or participating 
court has elected to come under the provisions of Act No. 88 of the Public Acts of 1961. 

History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 

Sec. 9. 
Credited Service for Periods of Active Duty; Conditions. 

A member who leaves or left the employ of a participating municipality or participating court to enter 
any armed service of the United States shall be entitled to credited service for periods of active duty subject to 
the following conditions: 

(1) 
The member is reemployed by the same participating municipality or participating court within 
6 months after the date of termination of the minimum period of active duty required of the 
member, and the member is not covered by Benefit Program DC by virtue of employment with 
the same participating municipality or participating court. 
(2) 
The member pays the retirement system the total amount of accumulated contributions 
withdrawn at the time of, or subsequent to, leaving employment by the participating 
municipality or participating court to enter armed service, plus regular interest as provided by 
the Retirement Board, from the date of withdrawal to the date of repayment. 
(3) 
Not more than 6 years of credited service shall be granted a member under this section. 
(4) 
Credited service shall not be granted for periods of armed service that are or could be used for 
obtaining or increasing a benefit from another retirement system. 
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

End of Article II. 

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ARTICLE III. RETIREMENT REQUIREMENTS AND BENEFIT PROGRAM. 

Sec. 10. Retirement; Requirements; Allowance; Benefit Programs. 

(1) 
A member or a vested former member (other than a member or vested former member covered 
by Benefit Program DC or Benefit Program H) may retire upon satisfaction of all of the 
following requirements: 
(a) 
A written application for retirement, on a form established by the retirement system, has 
been filed with the retirement system. The Retirement Board may establish required 
time periods, preceding or surrounding the date of retirement, for the filing of an 
application for retirement. 
(b) 
One of the following applies: 
(i) 
The member or vested former member has attained age 50 years or older and 
has 25 or more years of credited service. 
(ii) 
The member or vested former member has attained age 55 years or older and 
has 15 or more years of credited service. 
(iii) 
The member or vested former member has attained age 60 years or older and 
has 10 or more years of credited service. 
(iv) 
The member or vested former member has attained age 60 years or older and 
has 8 or more years of credited service if the member's participating 
municipality or participating court adopts the termination of membership 
vesting Benefit Program V-8 for the member. 
(v) 
The member or vested former member has attained age 60 years or older and 
has 6 or more years of credited service if the member's participating 
municipality or participating court adopts the termination of membership 
vesting Benefit Program V-6 for the member. 
(vi) 
The participating municipality or participating court has adopted Benefit 
Program F(N) and the member or vested former member has the specified 
period of credited service required for retirement. 
(c) 
The member terminates membership before the date of retirement. 
Periods of at least 12 months in which a participating municipality or participating court 
has made employer contributions on behalf of a member under MERS Benefit Program 
DC shall be counted towards satisfying the applicable vesting or service requirements in 
this subsection (1), but not in the calculation of the retirement allowance. 

(2) 
Upon retirement the member or vested former member shall be paid a retirement allowance 
computed under the benefit programs that are applicable to the member's or vested former 
member's credited service and the provisions of subsection (3). The benefit programs 
applicable to a vested former member shall be determined as of the date of termination of 
membership and shall not be affected by any subsequent change in benefit programs that is 
applicable to the classifications held by the vested former member. 
(3) 
If the date of retirement precedes the date the member or vested former member attains the full 
retirement allowance age as determined under subsection (4) or (5), the amount of retirement 
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allowance shall be reduced. The amount of reduction shall be 1/2 of 1% of the retirement 
allowance multiplied by the number of months, rounded to the next higher number of months 
and not less than zero, by which the date of retirement precedes the date the member or vested 
former member attains the full retirement allowance age. The reduction called for in this 
subsection shall not be applied to benefit component (I) under Benefit Program B, as provided 
in section 14. 

(4) 
A participating municipality or participating court may adopt Benefit Program F(N), Benefit 
Program F50, or Benefit Program F55, or a combination thereof. Under Benefit Program F(N), 
the full retirement allowance age shall be any age with the required period of credited service. 
The required period of credited service shall be either 20, 21, 22, 23, 24, 25, 26, 27, 28, 29 or 30 
years, as specified pursuant to subsection (5). Under Benefit Program F50, the full retirement 
allowance age shall be age 50 years with a required period of credited service of either 25 or 30 
years. Under Benefit Program F55, the full retirement allowance age shall be age 55 years with 
a required period of credited service of 15 years, 20 years, 25 years, or 30 years. Periods of at 
least 12 months in which a participating municipality or participating court has made 
employer contributions on behalf of a member under MERS Benefit Program DC shall be 
counted toward satisfying the service requirement in this subsection (4), but not in the 
calculation of the retirement allowance. 
(5) 
Full retirement allowance age shall be age 60 years, unless the participating municipality or 
participating court has adopted Benefit Program F(N), Benefit Program F50 or Benefit Program 
F55, or a combination thereof, and the member or vested former member has the required 
period of credited service. The governing body of the participating municipality or chief judge 
of the participating court shall specify, at the time Benefit Program F(N), Benefit Program F50 
or Benefit Program F55, or a combination thereof, are adopted, the required period of credited 
service which shall be applicable to the benefit program. 
(6) 
Subject to sections 43 and 43A, a participating municipality or participating court may 
adopt Benefit Program DROP+ if, on the date of the resolution adopting Benefit Program 
DROP+, the total percent funded for the entire municipality or court, based on the ratio of 
valuation assets to actuarial accrued liabilities as of the most recent annual actuarial 
valuation report for the municipality or court, is at least sixty percent (60%). In the 
adoption resolution, the participating municipality or participating court shall specify the 
DROP+ Percentage, which shall be one of the following whole number percentages: 4%, 
5%, 6%, 7%, or 8%. Upon retirement under this section, a member who is covered under 
Benefit Program DROP+ may elect to receive a portion of the member’s retirement 
allowance in a lump sum distribution, and the balance as a reduced retirement allowance. 
The following conditions apply: 
(a) 
The election of a lump sum distribution and the selection of the amount of the 
lump sum distribution shall be in writing and filed with the Retirement Board on 
or after the date of filing of the application for retirement but before the date the 
first retirement allowance payment is made. 
(b) 
Subject to the conditions in paragraph (c) of this subsection, the amount of the 
lump sum distribution shall be a multiple of 12, 24, 36, 48, or 60 times the 
member’s monthly retirement allowance provided under subsections (2) and (3) of 
this section; however, if the member is covered under Benefit Program C-2, as 
provided in section 19, the amount of the lump sum distribution shall be a multiple 
of 12, 24, 36, 48, or 60 times the monthly retirement allowance averaged over the 
first 120 months of retirement, excluding any retirement allowance increases 
under Benefit Program E, as provided in section 20, or Benefit Program E-1, as 
provided in section 21, or Benefit Program E-2, as provided in section 22. 
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(c) 
The number of months of retirement allowance included in the lump sum 
distribution shall not exceed the number of complete calendar months between the 
date the member first attained full retirement age as determined under subsection 
(4) or (5) of this section, and the date of retirement; provided that the date of 
attainment of full retirement age shall be based on benefit programs in effect on 
the date of retirement and credited service imputed from the credited service at 
retirement using the assumption that one month of credited service is acquired 
each calendar month before retirement. 
(d) 
The reduced retirement allowance shall be equal to the member’s retirement 
allowance provided under subsections (2) and (3) of this section reduced by one of 
the following percentages: 
(i) 
The DROP+ Percentage, if the lump sum distribution includes 12 months 
of benefits. 
(ii) 
Two (2) times the DROP+ Percentage, if the lump sum distribution 
includes 24 months of benefits. 
(iii) 
Three (3) times the DROP+ Percentage, if the lump sum distribution 
includes 36 months of benefits. 
(iv) 
Four (4) times the DROP+ Percentage, if the lump sum distribution 
includes 48 months of benefits. 
(v) 
Five (5) times the DROP+ Percentage, if the lump sum distribution 
includes 60 months of benefits. 
(e) 
The member shall elect 1 or a combination of the following methods of distribution 
of the lump sum distribution, to the extent allowed by federal law and subject to 
procedures established by the Retirement Board: 
(i) 
Payment of the lump sum distribution to the member. 
(ii) 
To the extent allowed by federal law and subject to procedures established 
by the Retirement Board, the lump sum distribution shall be considered an 
eligible rollover distribution. 
(f) 
In the event any alteration of this subsection (6) is made or occurs, under section 
43B of the Plan Document concerning collective bargaining or under any other 
plan provision or law, adoption of DROP+ shall not be recognized, other than in 
accordance with this subsection. 
History: 1989 PA 51, Eff. June 12, 1989, and Plan Document of 1996. 

Note 1: Bold text paragraph following subsection (1)(c), and bold text in last sentence of subsection (4), added by 
Board action of August 23, 2000, with immediate effect as of October 1, 2000. See companion amendment to sections 
4(1) and section 19A(12). 

Note 2: Subsection (6) added by Board action of May 14, 2003, with immediate effect, along with companion 
amendments to sections 2C(7), 31(1) and 34; and addition of section 11(1)(p) and 11(2)(e). 

Note 3: Former final clause in subparagraph (6)(c) concerning temporary DROP+ benefits under section 11, deleted by 
Board action of November 8, 2005, with immediate effect. 

MERS Plan Doc: Revised as of May 13, 2009 
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Note 4: Bold text in subsection (1) added March 14, 2006, with immediate effect: all provisions then amended create 
the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Important Comment: As a continuing condition of MERS tax-qualified “governmental plan” status under Section 401(a) 
of the Internal Revenue Code, MERS Plan Document Section 55(1) provides: “The Retirement Board intends that the 
retirement system be a qualified pension plan under section 401 of the Internal Revenue Code and that the trust be an 
exempt organization under section 501 of the Internal Revenue Code. The Retirement Board shall administer the 
retirement system to fulfill this intent.” A retirant is a person who has had a “bona fide termination of employment in 
which the employer/employee relationship is completely severed” (IRS Information Letter 2000-0245 (September 6, 
2000); Revenue Ruling 74-254, 1974-1 CB 91); and where the person is currently receiving an accrued pension benefit 
payment immediately. Accordingly, to clearly show “complete severance,” the employer should establish a minimum 
period following termination of employment of not less than 30 days before any formal actions necessary for new 
employment occur. Where there has been a bona fide severance of employment for at least 30 days, payment of a 
pension benefit during new employment is consistent with Plan Section 55(1). Where there is no bona fide termination 
of employment of at least 30 days before hiring, payment of a pension benefit would not be consistent with Section 55(1), 
could imperil MERS qualified plan status, and the rehired individual’s receipt of benefits while reemployed subject to 
suspension by MERS. See also Michigan Attorney General Opinion #7167 (December 29, 2004). Source: MERS Legal 
Department February 2, 2005. 

Sec. 11. Adoption for Temporary Period of Benefit Programs or Combination of Benefit Programs; 
Contents of Resolution or Administrative Order; Retirement Under Section 10 During Temporary 
Period; Limitation. 

(1) 
Subject to sections 43 and 43A, a participating municipality may by resolution of its governing 
body, or a participating court may by administrative order of its chief judge adopt for a 
temporary period any of the following benefit programs or any legitimate combination of the 
following benefit programs: 
(a) 
Benefit Program E-2 under section 22. 
(b) 
Benefit Program FAC-3 under section 2A(11)(b). 
(c) 
Benefit Program F50 under section 10(4). 
(d) 
Benefit Program F55 under section 10(4). 
(e) 
Benefit Program B-1 under section 15. 
(f) 
Benefit Program B-2 under section 16. 
(g) 
Benefit Program B-3 under section 16A. 
(h) 
Benefit Program B-4 under section 16B. 
(i) 
Benefit Program C-New and C-Old under section 17. 
(j) 
Benefit Program C-1 New and C-1 Old under section 18. 
(k) 
Benefit Program C-2 under section 19. 
(l) 
Benefit Program RS50% under section 23A. 
(m) 
Benefit Program V-8 under section 10. 
(n) 
Benefit Program V-6 under section 10. 
(o) 
Benefit Program F(N) under section 10. 
(p) 
Benefit Program DROP+ under section 10. 
(2) The resolution or administrative order shall contain all of the following that are applicable: 
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(a) 
The benefit program or combination of benefit programs adopted under subsection (1). 
(b) 
The beginning and ending dates of the temporary period selected under subsection (1). 
The temporary period selected shall be for not less than 60 days and not more than 180 
days. 
(c) 
The classification of members covered by the benefit program or combination of benefit 
programs for the temporary period under subsection (1). 
(d) 
If Benefit Program F50, F55 or F(N) is adopted for a temporary period under 
subsection (1), the required period of credited service applicable to the benefit program. 
(e) 
If Benefit Program DROP+ is adopted for a temporary period under subsection 
(1) of this section, the DROP+ Percentage, which shall be one of the following 
whole number percentages: 4%, 5%, 6%, 7%, or 8%. 
(3) 
A member who is in the classification of members covered under the benefit program or 
combination of benefit programs for the temporary period under this section and who retires 
under section 10 during the temporary period shall receive a retirement allowance computed 
pursuant to the benefit program or combination of benefit programs adopted for the temporary 
period. 
(4) 
A participating municipality or a participating court shall not adopt a temporary period under 
this section for the same classification of members on more than two (2) occasions in any period 
of five (5) consecutive calendar years. A participating municipality or a participating court 
shall not adopt a temporary period under this section for members covered by Benefit Program 
DC or Benefit Program H. 
History: 1995 PA 191, Eff. Nov. 7, 1995, and Plan Document of 1996. 

Note 1: 
Subparagraphs (1)(m) and (n) added by Board action of August 20, 1998, with immediate effect. 

Note 2: 
Subparagraph (1)(o) and bold text in 2(d) added by Board action of November 19, 1998, with immediate effect. 

Note 3: Bold text in subparagraphs 1(p) and 2(e) added by Board action of May 14, 2003, with immediate effect, along 
with companion amendments to sections 2C(7), 31(1) and 34; and addition of section 10(6). 

Note 4: Bold text in subsection (4) added March 14, 2006, with immediate effect: all provisions then amended create 
the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a) 

Sec. 12. Vested Former Member; Requirements. 

(1) 
A member who ceases to be a member, for a reason other than retirement or death, is a vested 
former member if one (1) of the following requirements is met. 
(a) 
The member has 10 or more years of credited service at the time the membership 
terminates. 
(b) 
The member has 8 or more years of credited service and is covered under the 
termination of membership vesting Benefit Program V-8 at the time the membership 
terminates. 
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(c) 
The member has 6 or more years of credited service and is covered under the 
termination of membership vesting Benefit Program V-6 at the time the membership 
terminates. 
(d) 
The member is covered under Benefit Program DC or Benefit Program H at the time 
the membership terminates; however, a member covered under Benefit Program H 
must have 6 or more years of credited service at the time the membership 
terminates in order to receive any benefits under the defined benefit component of 
Benefit Program H. 
(2) 
A vested former member may retire upon satisfaction of the requirements of section 10 or 
section 19B. The benefit programs applicable to a vested former member shall be determined 
as of the date of termination of membership and shall not be affected by a subsequent change in 
benefit programs applicable to the classifications held by the vested former member. 
History: 1989 PA 51, Eff. June 12, 1989, and Plan Document of 1996. 

Note: Bold text in subsection (1)(d) and (2) revised March 14, 2006, with immediate effect: all provisions then amended 
create the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 
19B added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 
39(1), 44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Sec. 13. Benefit Program A; Retirement Allowance. 

The amount of retirement allowance under Benefit Program A shall be 1% of the member's or former 
vested member's final average compensation multiplied by the member's credited service. This benefit program 
shall cease to be available for selection after January 2, 1986. 

History: 1984 PA 427, Eff. Jan 2, 1985, and Plan Document of 1996. 

Sec. 14. Benefit Program B; Retirement Allowance. 

(1) 
The amount of a retirement allowance under Benefit Program B shall be the sum of benefit 
components (i), (ii), (iii), and (iv), described as follows: 
(a) 
Benefit component (i) is the amount of retirement allowance which has the same 
actuarial present value as the member's accumulated contributions as of the date of 
retirement. 
(b) 
Benefit component (ii) is $120.00. 
(c) 
Benefit component (iii) is 0.84% of the member's final average compensation 
multiplied by the member's membership service. 
(d) 
Benefit component (iv) is 1.13% of the member's final average compensation multiplied 
by the member's prior service. 
(2) 
Benefit component (ii) shall be the obligation of the last participating municipality to cover the 
member under Benefit Program B. 
(3) 
Benefit Program B shall cease to be available for selection after January 2, 1986. 
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(4) 
For purposes of this section, "member" includes vested former member. 
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 

Sec. 15. Benefit Program B-1; Retirement Allowance. 

(1) 
The amount of a retirement allowance under Benefit Program B-1 shall be 1.7% of the 
member's final average compensation multiplied by the member's credited service. 
(2) 
The amount of retirement allowance shall not be less than the amount of retirement allowance 
computed according to Benefit Program B if the participating municipality previously covered 
the member under Benefit Program B. 
(3) 
For purposes of this section, "member" includes vested former member. 
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 

Sec. 16. Benefit Program B-2; Retirement Allowance. 

(1) 
The amount of a retirement allowance under Benefit Program B-2 shall be 2% of the member's 
final average compensation multiplied by the member's credited service. 
. 


(2) 
For purposes of this section, "member" includes vested former member. 
History: 1986 PA 291, Eff. Dec. 22, 1986, and Plan Document of 1996. 

Sec. 16A. Benefit Program B-3; Retirement Allowance. 

(1) 
The amount of a retirement allowance under Benefit Program B-3 shall be 2.25% of the 
member's final average compensation multiplied by the member's credited service, subject to 
the maximum stated in subsection (2). 
(2) 
The amount of retirement allowance under Benefit Program B-3 shall not exceed 80% of the 
member's final average compensation, or the amount of retirement allowance the member 
would have been entitled to had the member continued to be covered by the benefit program in 
effect immediately before coverage by Benefit Program B-3, whichever is greater. 
(3) 
For purposes of this section, "member" includes vested former member. 
History: 1986 PA 291, Eff. Dec. 22, 1986, and Plan Document of 1996. 

Sec. 16B. Amount of Retirement Allowance Under Benefit Program B-4. 

(1) 
The amount of a retirement allowance under Benefit Program B-4 shall be 2.5% of the 
member's final average compensation multiplied by the member's credited service, subject to 
the maximum stated in subsection (2). 
(2) 
The amount of retirement allowance under Benefit Program B-4 shall not exceed 80% of the 
member's final average compensation, or the amount of retirement allowance the member 
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would have been entitled to had the member continued to be covered by the benefit program in 
effect immediately before coverage by Benefit Program B-4, whichever is greater. 

(3) For purposes of this section, "member” includes vested former member. 
History: 1990 PA 99, Eff. June 7, 1990, and Plan Document of 1996. 
Sec. 17. Benefit Program C-New and C-Old; Retirement Allowance. 

(1) 
The amount of retirement allowance under Benefit Program C-New shall be 1.3% of the 
member's final average compensation multiplied by the member's credited service. 
(2) 
The amount of retirement allowance under Benefit Program C-Old shall be the sum of benefit 
components (a) and (b), described as follows: 
(a) 
1% of the first $4,200.00 of the member's final average compensation multiplied by the 
member's credited service. 
(b) 
1.5% of the portion, if any, of the member's final average compensation in excess of 
$4,200.00 multiplied by the member's credited service. 
(3) 
Benefit Program C-Old shall cease to be available for selection after January 2, 1986. 
(4) For purposes of this section, "member" includes vested former member. 
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 
Sec. 18. Benefit Program C-1 New and C-1 Old; Retirement Allowance. 

(1) 
The amount of retirement allowance under Benefit Program C-1 New shall be 1.5% of the 
member's final average compensation multiplied by the member's credited service. 
(2) 
The amount of retirement allowance under Benefit Program C-1 Old shall be the sum of benefit 
components (a) and (b): 
(a) 
1.2% of the first $4,200.00 of the member's final average compensation multiplied by 
the member's credited service; and 
(b) 
1.7% of the portion, if any, of the member's final average compensation in excess of 
$4,200.00 multiplied by the member's credited service. 
(3) 
Benefit Program C-1 Old shall cease to be available for selection after January 2, 1986. 
(4) For purposes of this section, "member" includes vested former member. 
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 
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Sec. 19. Benefit Program C-2; Adoption; Retirement Allowance. 

(1) 
Benefit Program C-2 shall be adopted only as a supplement to Benefit Programs A, C, C-1 and 
B-1. The amount of retirement allowance under Benefit Program C-2 shall be the amount 
which, when added to the amount of the Benefit Program A, C, C-1, or B-1 retirement 
allowance, will produce a total retirement allowance of 2% of the member's final average 
compensation multiplied by the member's credited service. 
(2) 
A Benefit Program C-2 retirement allowance shall be paid only for periods during which 1 of 
the following conditions exists: 
(a) 
The retirement allowance is being paid pursuant to section 10 and the member has not 
attained the age at which an unreduced social security old age benefit is available. 
(b) 
The retirement allowance is being paid pursuant to section 24 and the member is not 
being paid a monthly social security disability benefit. 
(c) 
The retirement allowance is being paid pursuant to section 26, 27 or 28 on account of 
the member's death and the recipient beneficiary is not being paid a monthly social 
security survivor benefit. The recipient beneficiary's monthly social security survivor 
benefit shall be presumed payable not later than the beneficiary's attainment of the age 
at which an unreduced social security survivor benefit would be available in the 
absence of the beneficiary's own earnings related social security old age benefit. 
(3) 
For purposes of this section, "member" includes vested former member. 
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 

Sec. 19A. Restated Benefit Program DC; Adoption; Contribution; Distribution. 

(1) 
This restated section 19A applies to a member covered exclusively by Benefit Program DC. 
This section as restated repeals and replaces predecessor section 19A. The entirety of former 
section 19A as in effect on the day of repeal shall be placed in the Appendix to Plan Document. 
(2) 
In the resolution adopting Benefit Program DC, the member's participating municipality or 
participating court shall provide for the contribution of a percentage of the member's 
compensation to the retirement system. The participating municipality or participating court 
shall choose the percentage from the available contribution programs. The contribution 
programs available for selection are any percentage of compensation allowed by federal law. 
The participating municipality or participating court shall choose the same contribution rate for 
all members in the same benefit program coverage classification. The Retirement Board shall 
determine the timing and mechanism for the remittance of employer contributions. The 
Retirement Board may establish a program for making transfers from the reserve for employer 
contributions to the reserve for defined contribution plan for the purpose of meeting all or a part 
of the participating municipality's or participating court's contribution under this subsection. 
(3) 
Member Contributions. A member may voluntarily contribute additional amounts to his or her 
individual account in the reserve for defined contribution plan to the extent allowed by federal 
law and subject to procedures established by the Retirement Board. A member may roll over 
qualified distributions from other qualified retirement plans into this retirement system, to the 
extent allowed by federal law. A member is immediately 100% vested in the member's 
accumulated balance. 
MERS Plan Doc: Revised as of May 13, 2009 
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(4) 
Employer Contributions. A member vests in employer contributions as provided in the vesting 
schedule adopted by the employer, subject to subparagraph (13). The vesting schedule may 
provide for one of the following: 
(a) 
Immediate Vesting upon Participation; or 
(b) 
100% Vesting after Stated Year (participant is 100% Vested after not to exceed 
maximum 5 Years of Service (“cliff” vesting)); or 
Stated Year: 
1 2 3 4 5 

 _________________ 

(c) 
Graded Vesting Percentage Per Year of Service (not to exceed maximum 6 Years of 
Service for 100% Vesting, nor be less than stated minimums below) 
% after 1 Year of Service. 
% after 2 Years of Service. 
% (not less than 25%) after 3 Years of Service. 
% (not less than 50%) after 4 Years of Service. 
% (not less than 75%) after 5 Years of Service. 
% (not less than 100%) after 6 Years of Service. 


(5) 
The Retirement Board may contract with private investment managers to invest the assets in the 
reserve for defined contribution plan. A member, vested former member, and beneficiary may 
direct the investment of the individual's accumulated balance to 1 or more of the available 
categories of investment provided by the investment managers. At least 3 categories of 
investment shall be made available to members, vested former members, and beneficiaries. 
(a) 
Short-term securities. 
(b) 
Fixed income securities. 
(c) 
Equity securities. 
(6) 
The Retirement Board shall determine the investment category for the accumulated balance of a 
member, vested former member, or beneficiary, if that individual does not choose to direct his 
or her own investments under subsection (5). 
(7) 
(a) Upon the death of a member or vested former member, the accumulated balance of the 
deceased member or deceased vested former member is considered to belong to the 
beneficiary or beneficiaries, if any, nominated by the deceased member or deceased 
vested former member. 
(b) 
To nominate a beneficiary or beneficiaries, a member shall file a written nomination 
with the Retirement Board, based on procedures established by the Retirement Board. 
Written consent by the member’s spouse to the beneficiary named is required unless the 
spouse is beneficiary to 100% of the balance; this requirement may be waived by the 
Retirement Board if the signature of the member’s spouse cannot be obtained because 
of extenuating circumstances. 
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(8) 
Upon termination of membership, a vested former member or a beneficiary, as applicable, shall 
elect 1 or a combination of several of the following methods of distribution of the vested 
former member's or beneficiary's accumulated balance, to the extent allowed by federal law 
and subject to subsection (7)(b) and procedures established by the Retirement Board: 
(a) 
Lump sum distribution to the vested former member or beneficiary. 
(b) 
Lump sum direct rollover to another eligible retirement plan, to the extent allowed by 
federal law. 
(c) 
Annuity for the life of the vested former member or beneficiary, or optional forms of 
annuity as determined by the Retirement Board. 
(d) 
No distribution, in which case the accumulated balance shall remain in the retirement 
system, to the extent allowed by federal law. 
(9) 
In the resolution adopting the Benefit Program DC, the participating municipality or 
participating court may provide an opportunity for current members of the retirement system to 
elect coverage under Benefit Program DC if each of the following conditions are met: 
(a) 
The member's participating municipality or participating court elects under Section 43 
or 43A to change the benefit program from a benefit program other than Benefit 
Program DC to Benefit Program DC, for members in a benefit program coverage 
classification who are first hired after the effective date of the change. 
(b) 
On the effective date of the change to Benefit Program DC, the member is a member of 
the retirement system and is in the benefit program coverage classification described in 
subdivision (a). 
(c) 
On the date of the resolution adopting Benefit Program DC, the total funded percent of 
aggregate accrued liabilities and valuation assets of all reserves and for the member’s 
benefit program coverage classification as specified in Table 13 (or successor table) of 
the most recent annual actuarial valuation report for the municipality or court shall be at 
least sixty percent (60%). The participating municipality or participating court may 
make additional contributions to the retirement system or reallocate assets among 
benefit program coverage classifications in order to meet the conditions of this 
subsection. 
In the resolution adopting Benefit Program DC, the participating municipality or participating 
court may require all current members of the retirement system to elect coverage under Benefit 
Program DC if the conditions (a), (b) and (c) of this subsection are met. 

(10) 
The retirement system shall offer 1 opportunity for a member who satisfies the conditions of 
subsection (9) to elect coverage under Benefit Program DC, and once made, the election is 
irrevocable. The member shall make the election under this subsection in writing, based on 
procedures established by the Retirement Board. The Retirement Board shall begin accepting 
written elections from members on and after the effective date of the change of benefit program 
pursuant to subsection (9), and shall not accept written elections from members: 
(a) 
Earlier than the end of the third month following the month in which the resolution is 
adopted and received by MERS; and 
(b) 
Later than the first day of the first calendar month that is at least 6 months after MERS 
receipt of the resolution. 
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If the member is married at the time of election, the election is not effective unless the election 
is signed by the member's spouse, except that this requirement may be waived by the 
Retirement Board if the signature of the member's spouse cannot be obtained because of 
extenuating circumstances. 

(11) 
A member who makes a written election under subsection (10) shall elect to do all of the 
following: 
(a) 
Cease to be covered by the previous benefit program effective 12:01 a.m. on the first 
day of the first calendar month that is at least 6 months after the effective date of the 
change of benefit program. 
(b) 
Become covered by Benefit Program DC effective 12:01 a.m. on the first day of the 
first calendar month that is at least 6 months after the effective date of the change of 
benefit program. 
(c) 
Except as provided in subsection (12), waive all of his or her rights to a retirement 
allowance or any other benefit provided under the previous benefit program. 
(12) 
For each member who, under subsection (10), elects coverage under Benefit Program DC, the 
Retirement Board shall transfer the following amounts from the reserve for employee 
contributions and the reserve for employer contributions to the reserve for defined contribution 
plan: 
(a) 
The member's accumulated contributions, if any, as of 12:01 a.m. on the day the 
member becomes covered by Benefit Program DC shall be transferred from the reserve 
for employee contributions to the reserve for defined contribution plan. 
(b) 
Pursuant to procedures established by the Retirement Board, the excess, if any, of the 
actuarial present value of the accrued benefit associated with the member's coverage 
under the previous benefit program, over the amount specified in subdivision (a), based 
upon the funded level percentage selected by the governing body in the MERS Uniform 
DC Program Resolution (which shall not exceed 100% funded level percentage in any 
case), shall be transferred from the reserve for employer contributions to the reserve for 
defined contribution plan. For purposes of this sub-paragraph: 
(i) 
The actuarial present value shall be computed as of 12:01 a.m. on the day the 
member becomes covered by Benefit Program DC and shall be based on the 
actuarial assumptions adopted by the Retirement Board. 
(ii) 
In determining final average compensation there shall not be included any 
accrued annual leave. 
(iii) 
The earliest retirement date (for an unreduced benefit) assumption under the 
benefit program in effect on the effective date of the change of the benefit 
program shall be utilized. 
(iv) 
For purposes of the actuarial present value calculation, any future benefit 
otherwise payable under Benefit Program E or E-1 shall be disregarded. 
(13) 
Where a member has previously acquired in the employ of any participating municipality or 
participating court: 
(a) 
not less than 1 year of defined benefit service in force with a participating municipality 
or participating court; 
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(b) 
eligible credited service where the participating municipality or participating court has 
adopted the Reciprocal Retirement Act, 1961 PA 88; 
(c) 
at least 12 months in which employer contributions by a participating municipality or 
participating court have been made on behalf of the member under Benefit Program 
DC, 
such service shall be applied toward satisfying the vesting schedule for employer contributions. 

History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996. Section 19A was enacted as part of 
the Plan Document of 1996, effective October 1, 1996. Section 19A became legally operative on July 8, 1997, 
the date on which the Internal Revenue Service issued its first Letter of Favorable Determination that the Plan 
Document conforms to all provisions of the Internal Revenue Code as a tax exempt governmental pension trust. 
The current IRS Favorable Determination Letter issued June 15, 2005, embracing all Plan Document provisions 
through November, 2004. 

Note: The entirety of former section 19A with History and Notes was repealed by Board action of September 
19, 2006, and Restated Section 19A approved, all with immediate effect as of October 1, 2006. The language, 
History and Notes of section 19A at the time of repeal appears in the Appendix to Plan Document. 

Sec. 19B. Benefit Program H; Adoption; Contribution; Distribution. [available for adoption beginning 
October 1, 2006] 

(1) 
This section applies only to a member covered by Benefit Program H. Benefit Program H 
includes both a defined benefit component and a defined contribution component. 
(a) 
The defined benefit component shall be determined as provided in subsections (2) through 
(4), and shall be funded exclusively by the participating municipality or participating 
court with no member contributions permitted. 
(b) 
The defined contribution component shall be determined as provided in subsections (5) 
through (16), and contributions shall be made by the member and the participating 
municipality or participating court as provided by bargaining agreement or 
personnel policy applicable to the same benefit program coverage classification. 
Unless specifically restricted by this Plan or the Retirement Board, a participating 
municipality or participating court is authorized to offer any rights, benefits, or features 
authorized for defined contribution plans under the Internal Revenue Code of 1986, as 
amended. 
(2) 
In the resolution adopting Benefit Program H, the member’s participating municipality or 
participating court shall specify the defined benefit formula multiplier to be one of the 
following: 
(a) 1.0 % 
(b) 1.25% 
(d) 1.5 % 
The specified multiplier determines the defined benefit retirement allowance. The multiplier 
selected at the time of initial adoption shall be an irrevocable action and may not be 
subsequently changed. 

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(3) 
A member or a vested former member covered by Benefit Program H may retire upon 
satisfaction of all of the following requirements: 
(a) 
A written application for retirement, on a form established by the retirement system, has 
been filed with the retirement system. The Retirement Board may establish required 
time periods, preceding or surrounding the date of retirement, for the filing of an 
application for retirement. 
(b) 
The member or vested former member has attained age 60 years or older and has 6 or 
more years of credited service. 
(c) 
The member terminates membership before the date of retirement. 
Periods of at least 12 months in which a participating municipality or participating court has 
made employer contributions on behalf of a member under MERS Benefit Program DC shall be 
counted towards satisfying the applicable vesting or service requirements in this subsection (3), 
but not in the calculation of the retirement allowance. 

(4) 
Upon retirement under subsection (3) the member or vested former member covered by Benefit 
Program H shall be paid a retirement allowance computed under the multiplier adopted in 
subsection (2), being either 1.0%, 1.25%, or 1.5% of the member's or vested former member’s 
final average compensation based on FAC-3, multiplied by the member's or vested former 
member’s credited service. This retirement allowance is in addition to amounts payable to the 
member or vested former member under the defined contribution component of Benefit 
Program H. 
(5) 
In the resolution adopting Benefit Program H, the member's participating municipality or 
participating court shall provide for the contribution under the defined contribution component 
of Benefit Program H of a percentage of the member's compensation to the retirement system. 
The participating municipality or participating court shall choose the percentage from the 
available contribution programs. The contribution programs available for selection are any 
percentage of compensation allowed by federal law. The participating municipality or 
participating court shall choose the same contribution rate for all members in the same benefit 
program coverage classification. The Retirement Board shall determine the timing and 
mechanism for the remittance of employer contributions. The Retirement Board may establish 
a program for making transfers from the reserve for employer contributions to the reserve for 
defined contribution plan for the purpose of meeting all or a part of the participating 
municipality's or participating court's contribution under this subsection. 
(6) 
(a) Member Contributions. A member may voluntarily contribute additional amounts to 
his or her individual account in the reserve for defined contribution plan to the extent 
allowed by federal law and subject to procedures established by the Retirement Board. 
A member may roll over qualified distributions from another eligible retirement plan 
into this retirement system, to the extent allowed by federal law. A member is 
immediately 100% vested in the member's accumulated balance. 
(b) 
Employer Contributions. A member vests in employer contributions as provided in the 
vesting schedule adopted by the employer. The vesting schedule may provide for one 
of the following: 
(i) 
Immediate vesting upon participation; or 
(ii) 
100% vesting after stated year (participant is 100% vested after not to exceed 
MERS Plan Doc: Revised as of May 13, 2009 
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maximum 5 years of service (“cliff” vesting)); or 

(iii) 
Graded vesting percentage per year of service (not to exceed maximum 6 years 
of service for 100% vesting, nor be less than stated minimums below) 
% after 1 year of service.

 % after 2 years of service.

 % (not less than 25%) after 3 years of service. 

______ % (not less than 50%) after 4 years of service. 

______ % (not less than 75%) after 5 years of service. 

 % (not less than 100%) after 6 years of service. 

(7) 
The Retirement Board may contract with private investment managers to invest the assets in the 
reserve for defined contribution plan. A member, vested former member, and beneficiary may 
direct the investment of the individual's accumulated balance to 1 or more of the available 
categories of investment provided by the investment managers. At least 3 categories of 
investment shall be made available to members, vested former members, and beneficiaries as 
follows: 
(d) 
Short-term securities. 
(e) 
Fixed income securities. 
(f) 
Equity securities. 
(8) 
The Retirement Board shall determine the investment category for the accumulated balance of a 
member, vested former member, or beneficiary, if that individual does not choose to direct his 
or her own investments under subsection (7). 
(9) 
(a) Upon the death of a member or vested former member, the accumulated balance of the 
deceased member or deceased vested former member is considered to belong to the 
beneficiary or beneficiaries, if any, nominated by the deceased member or deceased 
vested former member. 
(b) 
To nominate a beneficiary or beneficiaries, a member shall file a written nomination 
with the Retirement Board, based on procedures established by the Retirement Board. 
Written consent by the member’s spouse to the beneficiary named is required unless the 
spouse is beneficiary to 100% of the balance; this requirement may be waived by the 
Retirement Board if the signature of the member’s spouse cannot be obtained because 
of extenuating circumstances. 
(10) 
Upon termination of membership, a vested former member or a beneficiary, as applicable, shall 
elect 1 or a combination of several of the following methods of distribution of the vested former 
member's or beneficiary's accumulated balance, to the extent allowed by federal law and subject 
to subsection (9)(b) and procedures established by the Retirement Board: 
(a) 
Lump sum distribution to the vested former member or beneficiary. 
(b) 
Lump sum direct rollover to another eligible retirement plan, to the extent allowed by 
federal law. 
MERS Plan Doc: Revised as of May 13, 2009 
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(c) 
Annuity for the life of the vested former member or beneficiary, or optional forms of 
annuity as determined by the Retirement Board. 
(d) 
No distribution, in which case the accumulated balance shall remain in the retirement 
system, to the extent allowed by federal law. 
(11) 
In the resolution adopting Benefit Program H, the participating municipality or participating 
court may provide an opportunity for current members of the retirement system to elect 
coverage under Benefit Program H if each of the following conditions are met: 
(a) 
The member's participating municipality or participating court elects under Section 43 
or 43A to change the benefit program from a benefit program other than Benefit 
Program H to Benefit Program H, for members in a benefit program coverage 
classification who are first hired after the effective date of the change. 
(b) 
On the effective date of the change to Benefit Program H, the member is a member of 
the retirement system and is in the benefit program coverage classification described in 
subdivision (a). 
(c) 
On the date of the Resolution adopting Benefit Program H, the total funded percent of 
aggregate accrued liabilities and valuation assets of all reserves and for the member’s 
benefit program coverage classification as specified in Table 13 (or successor table) of 
the most recent annual actuarial valuation report for the municipality or court shall be at 
least sixty percent (60%). This condition does not apply if the current benefit program 
is Benefit Program DC. The participating municipality or participating court may make 
additional contributions to the retirement system or reallocate assets among benefit 
program coverage classifications in order to meet the conditions of this subsection. 
In the resolution adopting Benefit Program H, the participating municipality or participating 
court may require all current members of the retirement system to elect coverage under Benefit 
Program H if the conditions (a), (b) and (c) of this subsection are met. 

(12) 
The retirement system shall offer 1 opportunity for a member who satisfies the conditions of 
subsection (11) to elect coverage under Benefit Program H, and once made, the election is 
irrevocable. The member shall make the election under this subsection in writing, based on 
procedures established by the Retirement Board. The Retirement Board shall begin accepting 
written elections from members on and after the effective date of the change of benefit program 
pursuant to subsection (11), and shall not accept written elections from members: 
(a) 
Earlier than the end of the third month following the month in which the resolution is 
adopted and received by MERS; and 
(b) 
Later than the first day of the first calendar month that is at least 6 months after MERS 
receipt of the resolution. 
If the member is married at the time of election, the election is not effective unless the election 
is signed by the member's spouse, except that this requirement may be waived by the 
Retirement Board if the signature of the member's spouse cannot be obtained because of 
extenuating circumstances. 

(13) 
A member who makes a written election under subsection (12) shall elect to do all of the 
following: 
MERS Plan Doc: Revised as of May 13, 2009 
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(a) 
Cease to be covered by the previous benefit program effective 12:01 a.m. on the first 
day of the first calendar month that is at least 6 months after the effective date of the 
change of benefit program. 
(b) 
Become covered by Benefit Program H effective 12:01 a.m. on the first day of the first 
calendar month that is at least 6 months after the effective date of the change of benefit 
program. 
(c) 
Except as provided in subsections (14) and (15), waive all of his or her rights to a 
retirement allowance or any other benefit provided under the previous benefit program. 
(14) 
For each member who is covered by a Benefit Program other than Benefit Program DC and 
who, under subsection (12), elects coverage under Benefit Program H, the Retirement Board 
shall transfer the following amounts from the reserve for employee contributions and the 
reserve for employer contributions to the reserve for defined contribution plan: 
(a) 
The member's accumulated contributions, if any, as of 12:01 a.m. on the day the 
member becomes covered by Benefit Program H shall be transferred from the reserve 
for employee contributions to the reserve for defined contribution plan. 
(b) 
Pursuant to procedures established by the Retirement Board, the funded excess present 
value shall be computed as the excess, if any, of the actuarial present value of the 
accrued benefit associated with the member's coverage under the previous benefit 
program, over the actuarial present value of the accrued benefit associated with the 
member’s coverage under the defined benefit component of Benefit Program H, after 
such excess is multiplied by the funded level percentage selected by the governing body 
in the MERS Uniform Hybrid Program Resolution (which shall not exceed 100% 
funded level percentage in any case). The excess, if any, of the funded excess present 
value over the amount specified in sub-paragraph (a) shall be transferred from the 
reserve for employer contributions to the reserve for defined contribution plan. For 
purposes of this sub-paragraph: 
(i) 
The actuarial present values shall be computed as of 12:01 a.m. on the day the 
member becomes covered by Benefit Program H and shall be based on the 
actuarial assumptions adopted by the Retirement Board. 
(ii) 
On the effective date of the change of the benefit program the member’s 
credited service under Benefit Program H shall be equal to the member’s 
credited service under the previous benefit program. 
(iii) 
In determining final average compensations there shall not be included any 
accrued annual leave. 
(iv) 
The earliest retirement date (for an unreduced benefit) assumption under the 
benefit program in effect on the effective date of the change of the benefit 
program shall be utilized. Likewise the earliest retirement date assumption 
under Benefit Program H shall be utilized. 
(v) 
For purposes of the actuarial present value calculation, any future benefit 
otherwise payable under Benefit Program E or E-1 shall be disregarded. 
(15) 
For each member who is covered by Benefit Program DC and who, under subsection (12), 
elects coverage under Benefit Program H: 
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(a) 
The accumulated balance in the reserve for defined contribution plan under Benefit 
Program DC, if any, as of 12:01 a.m. on the day the member becomes covered by 
Benefit Program H shall be transferred to the reserve for defined contribution plan 
under Benefit Program H. 
(b) 
For purposes of calculating benefit amounts under the defined benefit component of 
Benefit Program H, only credited service earned after 12:01 a.m. on the day the 
member becomes covered by Benefit Program H shall be recognized. 
(16) 
Where a member has previously acquired in the employ of any participating municipality or 
participating court: 
(a) 
not less than 1 year of defined benefit service in force with a participating municipality 
or participating court; 
(b) 
eligible credited service where the participating municipality or participating court has 
adopted the Reciprocal Retirement Act, 1961 PA 88; 
(c) 
at least 12 months in which employer contributions by a participating municipality or 
participating court have been made on behalf of the member under Benefit Program 
DC; 
such service shall be applied toward satisfying the vesting schedule for employer contributions 
under Benefit Program H. 

(17) 
In the event any alteration of any provision of this section 19B, or other sections of the Plan 
Document related to the provisions of Benefit Program H, is made or occurs, under section 43B 
of the Plan Document concerning collective bargaining or under any other plan provision or 
law, adoption of Benefit Program H shall not be recognized, other than in accordance with this 
section and other sections of the Plan Document related to the provisions of Benefit Program 
H. 
Note 1: Section 19B added March 14, 2006, with immediate effect: all provisions then amended create the Hybrid Plan, 
Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B added, 20(5), 21(8), 
22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 44(2)(b), 44A(2)(b), 
46(1), 46A(1), and 47(1)(a). 

Note 2: Bold language added to subsection (1) May 18, 2006, with immediate effect as of March 14, 2006. 

Sec. 20. Benefit Program E; Adoption or Readoption; Effective Date; Adjustment Date; Adjustment 
Factor; Prohibition. 

(1) 
A participating municipality may by resolution of its governing body or a participating court 
may by administrative order of its chief judge adopt or readopt Benefit Program E. The 
resolution or administrative order shall specify: 
(a) 
the effective date(s) of retirement for the eligible retirants and beneficiaries; and 
(b) 
either (i) a percentage adjustment factor; or (ii) a fixed dollar amount. 
The adjustment factor or fixed dollar amount shall specify its application to all retirees, or each 
retirement allowance in effect for the date(s) specified. 

MERS Plan Doc: Revised as of May 13, 2009 
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(2) 
The adjustment date under Benefit Program E shall be the first January 1 coincident with or 
subsequent to the effective date of the change in coverage and which is also at least 30 days 
after the adoption or readoption of Benefit Program E. 
(3) 
The amount of the retirement allowance of a retirant or beneficiary whose participating 
municipality or participating court has adopted or readopted Benefit Program E shall be 
adjusted on the adjustment date. The amount of adjustment shall be added to the amount of 
retirement allowance payable immediately prior to the adjustment date. 
(4) 
Benefit Program E shall not be applied to a retirement allowance that is subject to adjustment 
under the provision of Benefit Program E-1 or Benefit Program E-2. 
(5) 
A participating municipality or a participating court shall not adopt Benefit Program E 
under this section for retirement allowances payable under Benefit Program H. 
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

Note 1: Relocation of text from former subsection (4) (added by Board action of May 20, 1997) to subparagraph 1(b) 
along with following sentence; per Board action of October 22, 1998, with immediate effect. 

Note 2: 
Bold text in subsection (1) added, and (b) and remaining text inserted from former (4); (3) revised; former (4)


(6) deleted; and former (7) renumbered as (4); by Board action of October 22, 1998, with immediate effect. 
Note 3: Bold text in subsection (5) added March 14, 2006, with immediate effect: all provisions then amended create 
the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Sec. 21. Benefit Program E-1; Adoption or Readoption; Effective Date; Applicability; Adjustment Dates; 
Maximum Cumulative Adjustment Limitation; Base Amount of Retirement Allowance; Adjustment 
Factor. 

(1) 
A participating municipality may by resolution of its governing body or a participating court 
may by administrative order of its chief judge adopt or readopt Benefit Program E-1. The 
resolution or administrative order shall specify the effective date of the change in coverage. 
Benefit Program E-1 shall apply to each retirement allowance that has an effective date prior to 
the effective date of the change in coverage and is not subject to adjustment under Benefit 
Program E-2. 
(2) 
The first adjustment date under Benefit Program E-1 shall be the first January 1 coincident with 
or subsequent to the effective date of change in coverage and which is also at least 30 days after 
the adoption of Benefit Program E-1. Subsequent adjustment dates shall occur on each January 
1 after the first adjustment date. 
(3) 
The amount of the retirement allowance of a retirant whose participating municipality or 
participating court has adopted or readopted Benefit Program E-1 shall be adjusted on each 
adjustment date except the adjustment date, if any, that is less than 6 months after the effective 
date of the retirement allowance. The amount of adjustment, subject to application of the 
maximum cumulative adjustment limitation, shall be equal to the adjustment factor multiplied 
by the amount of base retirement allowance. 
(4) 
Effective January 1, 1987, the maximum cumulative adjustment limitation is 100% of the 
percentage increase, if any, in the average consumer price index monthly values from the base 
index period to the current index period. The base index period is the 12-month period ending 
MERS Plan Doc: Revised as of May 13, 2009 
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on the September 30 that is 15 months before the first adjustment date. The current index 
period is the 12-month period ending on the September 30 that is immediately before the 
current adjustment date. The limitation shall be applied to the base amount of retirement 
allowance. For purposes of this subsection, "consumer price index" means the consumer price 
index for all urban consumers, as published by the United States department of labor. If this 
index is discontinued or restructured after 1983 in a manner materially changing its character, 
the Retirement Board shall select the alternative index that most closely preserves the intent 
implied in the selection of the specified index. The Retirement Board shall select the index 
most closely resembling the specified index for application to periods for which the specified 
index was not published. 

(5) 
The base amount of retirement allowance is the amount that would be payable if the retirement 
allowance had never been adjusted under the provisions of Benefit Program E-1. 
(6) 
The adjustment factor shall be 2.5%. 
(7) 
Effective for annual adjustment dates commencing on and after January 1, 1999, all 
adoptions or readoptions of Benefit Program E-1 under subsection (1) shall provide for an 
annual, automatic non-compounded adjustment amount of 2.5% of the base amount of 
retirement allowance, without application of the last sentence of subsection (3) and 
subsection (4) in its entirety. 
(8) 
A participating municipality or a participating court shall not adopt Benefit Program E-1 
under this section for retirement allowances payable under Benefit Program H. 
History: 1989 PA 51, Eff. June 12, 1989, and Plan Document of 1996. 

Note 1: 
Subsection (7) added by Board action of November 19, 1998, with immediate effect as of November 1, 1998. 

Note 2: Bold text in subsection (8) added March 14, 2006, with immediate effect: all provisions then amended create 
the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Sec. 22. Benefit Program E-2; Adoption; Effective Date; Applicability; Adjustment Dates; Maximum 
Cumulative Adjustment Limitation; Base Amount of Retirement Allowance; Adjustment Factor. 

(1) 
A participating municipality may by resolution of its governing body or a participating court 
may by administrative order of its chief judge adopt Benefit Program E-2. The resolution shall 
specify the effective date of the change in coverage. Benefit Program E-2 shall apply to each 
retirement allowance that has an effective date on or after the effective date of the change in 
coverage. 
(2) 
The first adjustment date under Benefit Program E-2 shall be the first January 1 coincident with 
or subsequent to the effective date of the change in coverage and which is also at least 30 days 
after the adoption of Benefit Program E-2. Subsequent adjustment dates shall occur on each 
January 1 after the first adjustment date. 
(3) 
The amount of a retirement allowance shall be adjusted on each adjustment date except the 
adjustment date, if any, that is less than 6 months after the effective date of the retirement 
allowance. The amount of adjustment, subject to application of the maximum cumulative 
adjustment limitation, shall be equal to the adjustment factor multiplied by the amount of base 
retirement allowance. 
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(4) 
Effective January 1, 1987, the maximum cumulative adjustment limitation is 100% of the 
percentage increase, if any, in the average consumer price index monthly values from the base 
index period to the current index period. The base index period is the 12-month period ending 
on the September 30 that is 15 months before the first adjustment date. The current index 
period is the 12-month period ending on the September 30 that is immediately before the 
current adjustment date. The limitation shall be applied to the base amount of retirement 
allowance. For purpose of this subsection, "consumer price index" means the consumer price 
index for all urban consumers, as published by the United States department of labor. If this 
index is discontinued or restructured subsequent to 1983 in a manner materially changing its 
character, the Retirement Board shall select the alternative index that most closely preserves the 
intent implied in the selection of the specified index. The Retirement Board shall select the 
index most closely resembling the specified index for application to periods for which the 
specified index was not published. 
(5) 
The base amount of retirement allowance is the amount that would be payable if the retirement 
allowance had never been adjusted under the provisions of Benefit Program E-2. 
(6) 
The adjustment factor shall be 2.5%. 
(7) 
Effective for annual adjustment dates commencing on and after January 1, 1999, all 
adoptions of Benefit Program E-2 under subsection (1) and all readoptions shall provide 
for an annual, automatic non-compounded adjustment amount of 2.5% of the base 
amount of retirement allowance, without application of the last sentence of subsection (3) 
and subsection (4) in its entirety. 
(8) 
A participating municipality or a participating court shall not adopt Benefit Program E-2 
under this section for retirement allowances payable under Benefit Program H. 
History: 1989 PA 51, Eff. June 12, 1989, and Plan Document of 1996. 

Note 1: 
Subsection (7) added by Board action of November 19, 1998, with immediate effect as of November 1, 1998. 

Note 2: Bold text in subsection (8) added March 14, 2006, with immediate effect: all provisions then amended create 
the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Sec. 23. Forms of Payment; Election; Naming of Survivor Beneficiary; Failure to Make Timely Election; 
Amount of Retirement Allowance; Election if Member Married at Retirement Allowance Effective Date; 
Signature of Spouse; Effect on Election if Retirant Divorced From Spouse Named as Survivor 
Beneficiary. 

(1) 
A member or a vested former member may elect to have retirement allowance payments made 
under 1 of the forms of payment described in subsection (2), and may name a survivor 
beneficiary. The election of a form of payment and the naming of a survivor beneficiary shall 
be in writing and filed with the Retirement Board before the date the first retirement allowance 
payment is made. Except as otherwise provided in section 23B, an election of form of payment 
shall not be changed on or after the date the first retirement allowance payment is made. A 
named survivor beneficiary shall not be changed on or after the date the first retirement 
allowance payment is made if form of payment II or III is elected. A named survivor 
beneficiary may be more than 1 person if form of payment IV is elected. A named survivor 
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beneficiary shall have an insurable interest in the life of the member or vested former member at 
the time of naming. 

(2) 
The member or vested former member may elect 1 of the following forms of payment: 
(a) 
Form of Payment SL - Straight Life Retirement Allowance. Except as otherwise 
provided in section 23B, under form of payment SL the retirant is paid a retirement 
allowance for life. The amount shall be determined as provided in section 10 or section 
19B. 
(b) 
Form of Payment II - Life With Full Continuation to Survivor Beneficiary. Under form 
of payment II the retirant is paid a reduced retirement allowance until either the retirant 
or the named survivor beneficiary dies. Except as otherwise provided in section 23B, 
upon the death of the named survivor beneficiary, the retirant is paid the form of 
payment SL retirement allowance over the retirant's remaining life. Upon the death of 
the retirant during the lifetime of the named survivor beneficiary, the named survivor 
beneficiary is paid the full amount of the reduced form of payment II retirement 
allowance over the named survivor beneficiary's remaining life. 
(c) 
Form of Payment IIA - Life With 3/4 Continuation to Survivor Beneficiary. Under 
form of payment IIA the retirant is paid a reduced retirement allowance until either the 
retirant or the named survivor beneficiary dies. Except as otherwise provided in section 
23B, upon the death of the named survivor beneficiary, the retirant is paid the form of 
payment SL retirement allowance over the retirant's remaining life. Upon the death of 
the retirant during the lifetime of the named survivor beneficiary, the named survivor 
beneficiary is paid 3/4 of the amount of the reduced form of payment IIA retirement 
allowance over the named survivor Beneficiary's remaining life. 
(d) 
Form of Payment III - Life With l/2 Continuation to Survivor Beneficiary. Under form 
of payment III the retirant is paid a reduced retirement allowance until either the retirant 
or the named survivor beneficiary dies. Except as otherwise provided in section 23B, 
upon the death of the named survivor beneficiary, the retirant is paid the form of 
payment SL retirement allowance over the retirant's remaining life. Upon the death of 
the retirant during the lifetime of the named survivor beneficiary, the named survivor 
beneficiary is paid ½ of the amount of the reduced form of payment III retirement 
allowance over the named survivor beneficiary's remaining life. 
(e) 
Form of Payment IV - Life With Period Certain Guarantee. Under form of payment IV 
the retirant is paid a reduced retirement allowance for life. Upon the death of the 
retirant during the guaranteed period, the named survivor beneficiary is paid the full 
amount of the reduced form of payment IV retirement allowance for the remainder of 
the guaranteed period. The guaranteed period shall be selected by the retirant at the 
time of election of form of payment IV and shall be either 60 months, 120 months, 180 
months, or 240 months but the guaranteed period shall not exceed the retirant's life 
expectancy as of the date of the retirement. The actuarial present value of remaining 
guaranteed retirement allowance payments shall be paid to the legal representative of 
the retirant or the named survivor beneficiary, whichever survives the longest if both 
the retirant and named survivor beneficiary die during the guaranteed period. 
(f) 
Form of Payment V - Life with Accelerated Payment. Under form of payment V the 
retirant is paid a retirement allowance for life. The amount of retirement allowance is 
increased over the amount under form of payment SL until the retirant attains the 
adjustment age specified by the board and is reduced from the amount under form of 
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payment SL after the retirant attains the adjustment age. The amount of increase and 
reduction shall be determined pursuant to procedures adopted by the Retirement Board. 
Form of payment V shall not be elected with respect to a retirement allowance 
computed under Benefit Program C-2 as provided in section 19. This form of 
payment shall cease to be available for selection after June 25, 1998. 

(3) 
Payment shall be made under form of payment SL if there is not a timely election of form of 
payment, except as otherwise provided in subsection (5) 
(4) 
The amount of retirement allowance under forms of payment II, IIA, III, IV, and V shall have 
the same actuarial present value as the amount of retirement allowance under form of payment 
SL, computed as of the date of retirement. 
(5) 
If a retiring member or vested former member is married at the retirement allowance effective 
date, an election under subsection (2), other than an election under subsection (2)(b), (c), or (d) 
naming the spouse as survivor beneficiary, is not effective unless the election is signed by the 
spouse, except that this requirement may be waived by the Retirement Board if the signature of 
a spouse cannot be obtained because of extenuating circumstances. 
(6) 
If a retirant receiving a reduced retirement allowance under subsection (2)(b) to (e) is divorced 
from the spouse who had been named the retirant's survivor beneficiary under subsection (2)(b) 
to (e), the election of a reduced retirement allowance form of payment shall be considered void 
by the retirement system if the judgment of divorce or award or order of the court, or an 
amended judgment of divorce or award or order of the court, described in section 53 and dated 
after [June 27, 1991] the effective date of [1991 PA 50] that added this subsection [(6)] provides 
that the election of a reduced retirement allowance form of payment under subsection (2)(b) to 
(e) is to be considered void by the retirement system and the retirant provides a certified copy of 
the judgment of divorce or award or order of the court, or an amended judgment of divorce or 
award or order of the court, to the retirement system. If the election of a reduced retirement 
allowance form of payment under subsection (2)(b) to (e) is considered void by the retirement 
system under this subsection, the retirant's retirement allowance shall revert to a straight life 
retirement allowance, including post-retirement adjustments, if any, subject to an award or order 
of the court as described in section 53. The retirement allowance shall revert to a straight life 
retirement allowance under this subsection effective the first of the month after the date the 
retirement system receives a certified copy of the judgment of divorce or award or order of the 
court. This subsection does not supersede a judgment of divorce or award or order of the court 
in effect on the effective date of the amendatory act that added this subsection. This subsection 
does not require the retirement system to distribute or pay retirement assets on behalf of a 
retirant in an amount that exceeds the actuarially determined amount that would otherwise 
become payable if a judgment of divorce had not been rendered. 
(7) 
A retirement allowance payable under a form of payment provided in this section is subject to 
an eligible domestic relations order under the Eligible Domestic Relations Order Act. 
(8) 
Each member or vested former member who applies for retirement shall be given a written 
explanation, prior to retirement, of the optional forms of payment provided in section 23. The 
explanation shall be written in simple language. 
(9) 
Pursuant to 26 CFR §1.401(a)(9)-6, Q&A-16, the Board has determined that this Section 23, as 
in effect on April 17, 2002, contains distribution options that satisfy 26 U.S.C. §401(a)(9) based 
upon the Board's reasonable and good faith interpretation of the provisions of that section. Any 
additions or amendments to this section, or to any other provisions of this plan dealing with 
distribution options, after April 17, 2002, must meet the requirements of U.S.C. §401(a)(9) and 
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26 CFR §1.401(a)(9), except to the extent that U.S.C. §401(a)(9) provides specific rules or 
exceptions for governmental plans. 

History: 1991 PA 50, Eff. June 27, 1991, and Plan Document of 1996. 

Note 1: 
Bracketed explanatory text added to subsection (6). 

Note 2: 
Bold text in subparagraph (2)(f) added by Board action of June 25, 1998, with immediate effect. 

Note 3: 
Subsection (9) added on August 11, 2004, with immediate effect. 

Note 4: Bold text in subsection (2)(a) added March 14, 2006, with immediate effect: all provisions then amended 
create the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 
19B added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 
39(1), 44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Note 5: Underlined text in subsection (1) and (2)(a)-(d) added by Board action of May 13, 2009, effective July 1, 2009. 

Sec. 23A. Adoption of Benefit Program RS50%; Specifying Effective Date of Change in Coverage; 
Duration and Amount of Payment to Surviving Spouse; "Surviving Spouse" Defined. 

(1) 
A participating municipality may by resolution of its governing body or a participating court 
may by administrative order of its chief judge adopt Benefit Program RS50%. The resolution or 
administrative order shall specify the effective date of the change in coverage. 
(2) 
Under Benefit Program RS50%, a surviving spouse of a deceased retirant shall be paid a 
retirement allowance for life if both of the following conditions are met: 
(a) 
The deceased retirant's retirement allowance effective date was on or after the effective 
date of the change in coverage. 
(b) 
All payments of the deceased retirant's retirement allowance were made pursuant to 
form of payment SL as prescribed in section 23(2)(a). 
(3) 
The amount of the retirement allowance payable to a surviving spouse under Benefit Program 
RS50% is 50% of the retirement allowance payable to the deceased retirant at the time of his or 
her death. 
(4) 
As used in this section, "surviving spouse" means a person who meets both of the following 
requirements: 
(a) 
He or she was married to the deceased retirant during the period beginning 1 year 
before the deceased retirant's retirement allowance effective date and ending on the 
retirement allowance effective date. 
(b) 
He or she was married to the deceased retirant on the date of the deceased retirant’s 
death. 
(5) 
A participating municipality or a participating court shall not adopt Benefit Program 
RS50% under this section for retirement allowances payable under Benefit Program H. 
History: 1990 PA 99, Eff. June 7, 1990, and Plan Document of 1996. 

Note: Bold text in subsection (5) added March 14, 2006, with immediate effect: all provisions then amended create the 
Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

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Sec. 23B. Adoption of Benefit Program PRO (Post-Retirement Option); Changing Form of Payment or 
Survivor Beneficiary Designation after Retirement; Effective July 1, 2009. 

(1) 
A participating municipality may by resolution of its governing body or a participating court 
may by administrative order of its chief judge adopt Benefit Program PRO, commencing July 1, 
2009. The resolution or administrative order shall specify the effective date of the change in 
coverage, which shall not be earlier than the actual date of adoption. The resolution of the 
governing body or the administrative order of the chief judge shall be uniformly applicable to 
all members employed by the participating municipality or court. 
(2) 
Under benefit program PRO, a retirant who was not married on his or her retirement allowance 
effective date and who elected form of payment SL under section 23(2)(a), or a retirant whose 
retirement allowance has reverted to a straight life retirement allowance pursuant to section 
23(6), may change the form of payment and name a survivor beneficiary under section 23(2)(b), 
(c), or (d), if all of the following apply: 
(a) The retirant marries on or after the actual date of adoption, and after the date the first 
retirement allowance payment is made. 
(b) The named survivor beneficiary is the retirant’s spouse. 
(c) The retirant files a written request with the Retirement Board to name his or her spouse as 
the survivor beneficiary not earlier than one year and not later than 2 years after the 
marriage of the retirant and the spouse. 
(3) 
A retirant who elected a form of payment under section 23(2)(b), (c), or (d), may change the 
survivor beneficiary if all of the following apply: 
(a) 
The named survivor beneficiary predeceases the retirant on or after the actual date of 
adoption, and after the date the first retirement allowance payment is made. 
(b) 
The new survivor beneficiary is the retirant’s spouse. 
(c) 
The retirant files a written request with the Retirement Board to name his or her spouse as 
the survivor beneficiary not earlier than one year and not later than 2 years after the later 
of: 
(i) The death of the named survivor beneficiary; and 
(ii) The marriage of the retirant and the spouse. 
(4) 
The retirement allowance of the retirant who makes an election under subsection (2) or (3) shall 
not be greater than the actuarial equivalent of the retirement allowance as determined by the 
Retirement Board that the retirant would otherwise be entitled to under section 23(2)(a), form of 
payment SL, as determined and effective as of the first day of the month the recomputed benefit 
is paid following the filing of the written request with the Retirement Board. 
(5) 
If the retirant dies no later than 12 months after the effective date of his or her election under 
subsection (2) or (3), the retirement allowance for the surviving beneficiary established under 
subsection (2) or (3) shall terminate 12 months after the death of the retirant. 
(6) 
All provisions of Section 43C, except for the requirement of supplemental valuation, shall 
apply as preconditions to the adoption of Benefit Program PRO, and MERS implementation, 
including but not limited to: 
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(a) The employer must be current in the payment of all required employer and employee 
contributions. 
(b) The employer must satisfy the minimum funded level requirement set forth in section 
43C(2) and (3). 
(7) 
In the event any alteration of this section 23B is made or occurs, under section 43B of the Plan 
Document concerning collective bargaining or under any other plan provision or law, MERS 
shall not recognize such action, other than in accordance with this section. 
Note: Section 23B added May 13, 2009 (with companion amendment to Section 23(1) and (2)(a)-(d)), effective July 1, 
2009. 

Sec. 24. Retirement of Incapacitated Member; Conditions; Medical Examinations; Effective Date of 
Disability Retirement; Amount of Disability Retirement Allowance; Exceptions. 

(1) 
The Retirement Board may retire a member, other than a member covered by Benefit Program 
DC, who becomes incapacitated for continued employment by the member's participating 
municipality or participating court if each of the following conditions is met: 
(a) 
Application for disability retirement is filed with the retirement system by either the 
member or the member's participating municipality or participating court within 1 year 
after the date the member ceases to be paid by the participating municipality or 
participating court. 
(b) 
The member has the minimum years of credited service required to be a vested former 
member in the event of termination of membership. 
(c) 
The member undergoes the medical examinations and tests ordered by the retirement 
system. 
(d) 
The medical adviser certifies all of the following to the Retirement Board: 
(i) 
The member is mentally or physically incapacitated for any continued 
employment by the participating municipality or participating court. 
(ii) 
The incapacity is likely to be permanent. 
(iii) 
The member should be retired. 
(2) 
Medical examination shall be made by or under the direction of a medical adviser selected by 
the Retirement Board. The effective date of a disability retirement shall not predate either of 
the following: 
(a) 
The date of the disability. 
(b) 
The date the member ceases to be paid by the participating municipality or participating 
court. 
(3) 
The amount of a disability retirement allowance shall be computed in accordance with the 
benefit programs that are applicable to the disability retirant's credited service. The early 
retirement reduction provisions of section 10(3) shall not be applied. 
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(4) 
The following exceptions to the provisions of subsections (1) to (3) shall apply if the Retirement 
Board finds that the member's disability was the natural and proximate result of a personal 
injury or disease arising out of and in the course of the member's actual performance of duty in 
the employ of the participating municipality or participating court. 
(a) 
The credited service requirement of subsection (1)(b) shall be waived. 
(b) 
The amount of retirement allowance shall not be less than 25% of the member's final 
average compensation. 
(5) 
A participating municipality or participating court may adopt Benefit Program D-2 but may not 
for members covered under Benefit Program H. Under Benefit Program D-2, the following 
exceptions to the provisions of subsections (1) to (3) shall apply if the Retirement Board finds 
that the member's disability was the natural and proximate result of a personal injury or disease 
arising out of and in the course of the member's actual performance of duty in the employ of the 
participating municipality or participating court: 
(a) 
The credited service requirement of subsection (1)(b) shall be waived. 
(b) 
There shall be paid a retirement allowance in an amount which is the greater of: 
(i) 
25% of the member's final average compensation; or 
(ii) 
10 years of credited service in addition to the member's actual period of 
credited service provided that the total years of credited service may not exceed 
the greater of 30 years or the member's actual period of credited service. In all 
cases where the retirement allowance Benefit Program in effect imposes a 
limitation on the maximum amount of retirement allowance payable, 
including but not limited to Benefit Programs B-3 and B-4, then the 
Benefit Program D-2 allowance shall not exceed such limitation. 
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

Note 1: Bold text in last sentence of subparagraph (5)(b)(ii) added by Board action of November 19, 1998, with 
immediate effect. 

Note 2: Bold text in subsection (5) revised March 14, 2006, with immediate effect: all provisions then amended create 
the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Sec. 25. Disability Retirant Under Age 60; Periodic Medical Examination; Suspension, Revocation, or 
Discontinuance of Disability Pension; Conditions to Restoration of Terminated Disability Retirant's 
Actual Credited Service; Service Not Credited for Period of Disability; Terminated Disability Retirant as 
Vested Former Member. 

(1) 
The Retirement Board may require a disability retirant who has not attained age 60 years to 
undergo periodic medical examination by or under the direction of a medical adviser selected by 
the Retirement Board. If a disability retirant refuses to submit to a medical examination, 
payment of the retirement allowance may be suspended by the Retirement Board until 
withdrawal of the refusal. If the refusal continues for 1 year, all of the disability retirant's rights 
in and to a disability pension may be revoked by the Retirement Board. A disability retirement 
allowance shall be discontinued if following the medical examination the medical adviser 
certifies that the disability retirant is mentally and physically able and capable of resuming 
MERS Plan Doc: Revised as of May 13, 2009 
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gainful employment with the participating municipality or participating court from which 
retired, and the Retirement Board concurs in the certification of the medical adviser. 

(2) 
The membership status of a terminated disability retirant who is subsequently employed by a 
participating municipality or participating court shall be governed by the provisions of section 
3. The terminated disability retirant's actual credited service at the time of disability retirement 
shall be restored upon again acquiring membership if both of the following conditions are 
satisfied: 
(a) 
Membership is on account of employment with the same participating municipality or 
participating court from which the member previously retired. 
(b) 
Membership is reacquired within 5 years from the date of termination of the disability 
retirement allowance. 
(3) 
Service shall not be credited for the period a disability retirant is being paid a disability 
retirement allowance. 
(4) 
A terminated disability retirant who does not again become a member with restoration of 
credited service pursuant to subsection (2) shall become a vested former member. 
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

Sec. 26. Conditions to Payment of Retirement Allowance for Life to Surviving Spouse; Commencement 
and Amount of Payment; Conditions to Payment of Retirement Allowance to Surviving Child; 
Restriction; Termination and Amount of Surviving Child's Retirement Allowance; Presumptions. 

(1) 
A retirement allowance shall be paid for life to the surviving spouse of a deceased member or a 
deceased vested former member, other than a member or vested former member covered by 
Benefit Program DC, if each of the following conditions is met: 
(a) 
The member or vested former member has the minimum years of credited service 
required to be a vested former member in the event of termination of membership. 
(b) 
The member or vested former member was married to the surviving spouse at the time 
of death. 
(c) 
The member or vested former member does not have a section 28 named contingent 
survivor beneficiary at the time of death. 
(2) 
Payment of a retirement allowance to the surviving spouse of a deceased vested former member 
shall not commence before the date the member would have first satisfied age and service 
requirements for retirement under section 10 (without regard to section 10(3)) or section 
19B. The amount of a surviving spouse's retirement allowance shall be 85% of the deceased 
member's or deceased vested former member's accrued retirement allowance, except that the 
amount shall not be less than the amount that would be paid under section 28 if the spouse had 
been named the contingent survivor beneficiary of the deceased member or deceased vested 
former member. 
(3) 
A retirement allowance shall be paid to each surviving child of a deceased member or a 
deceased vested former member, other than a member or vested former member covered by 
Benefit Program DC, if each of the following conditions is met: 
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(a) 
The member or vested former member has the minimum years of credited service 
required to be a vested former member in the event of termination of membership. 
(b) 
The child is unmarried and has not attained age 21 years. 
(c) 
The member or vested former member does not have a section 28 named contingent 
survivor beneficiary other than the member’s spouse at the time of death. 
(4) 
Payment of a retirement allowance to a surviving child shall not be made for any month for 
which a surviving spouse is paid a retirement allowance. A surviving child's retirement 
allowance shall terminate upon the child's twenty-first birthday or upon the prior marriage or 
death of the child. The amount of a surviving child's retirement allowance shall be an equal 
share of 50% of the deceased member's or the deceased vested former member's accrued 
retirement allowance. A child's share shall be recomputed each time there is a change in the 
number of surviving children eligible for payment of a retirement allowance. 
(5) 
A deceased member's or a deceased vested former member's accrued retirement allowance shall 
be computed under the following presumptions: 
(a) 
The deceased member or deceased vested former member shall be presumed to have 
retired under the provisions of section 10 (without regard to section 10(3)) or section 
19B, on the day preceding death. 
(b) 
The deceased member shall be presumed to have elected form of payment SL. 
(6) 
The presumptions of retiring and election of form of payment shall be effective notwithstanding 
the failure to satisfy the specific requirements of sections 10, 19B and 23 with regard to such 
activities. 
(7) 
In the case of a member who dies while performing qualified military service as defined 
in section 414(u) of the Internal Revenue Code, the survivors of the deceased member 
who died on or after January 1, 2007 shall be entitled to any additional benefits, other 
than benefit accruals relating to the period of qualified military service, provided under 
the plan had the member resumed and then terminated employment on account of death. 
History: 1986 PA 291, Eff. Dec. 22, 1986, and Plan Document of 1996. 

Note 1: 
Subsection (3)(c) as amended by Board action of May 8, 2002, with immediate effect. 

Note 2: Bold text in subsections (2), (5)(a), and (6) as amended March 14, 2006, with immediate effect: all provisions 
then amended create the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 
12(1)(d) and (2), 19B added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and 
(4), 30(1), 32(5), 39(1), 44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Note 3: Subsection (7) added May 13, 2009, with immediate effect and retroactive to January 1, 2007, pursuant to 
Section 104(a) of the Heroes Earnings Assistance and Relief Act of 2008. 

Sec. 27. Death Resulting From Injury or Disease Arising Out of and in Course of Duty; Additional 
Provision Applicable to Section 26. 

If the death of a member is found by the Retirement Board to be the natural and proximate result, 
independent of all other causes, of a personal injury or disease arising out of and in the course of the member's 

MERS Plan Doc: Revised as of May 13, 2009 
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actual performance of duty with a participating municipality or participating court, the following additional 
provisions shall apply to section 26. 

(1) 
The credited service requirement specified in section 26 shall be waived. 
(2) 
The amount of retirement allowance paid a surviving spouse shall not be less than 25% of the 
deceased member's final average compensation. 
(3) 
The amount of retirement allowance paid a surviving child shall not be less than an equal share 
of 25% of the deceased member's final average compensation. 
(4) 
If the participating municipality or participating court has adopted Benefit Program D-2, the 
amount of retirement allowance paid a surviving spouse or surviving child shall not be less than 
the amount computed as if the member had acquired 10 years of credited service in addition to 
the member's actual period of credited service, provided that the total years of credited service 
may not exceed the greater of 30 years or the member's actual period of credited service. In all 
cases where the retirement allowance Benefit Program in effect imposes a limitation on 
the maximum amount of retirement allowance payable, including but not limited to 
Benefit Programs B-3 and B-4, then the Benefit Program D-2 allowance shall not exceed 
such limitation. A participating municipality or a participating court shall not adopt 
Benefit Program D-2 for members covered under Benefit Program H. 
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

Note 1: 
Bold text in subsection (4) added by Board action of November 19, 1998, with immediate effect. 

Note 2: Bold underlined text in last sentence of subsection (4) added March 14, 2006, with immediate effect: all 
provisions then amended create the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 
10(1), 11(4), 12(1)(d) and (2), 19B added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), 
(3)(a) and (4), 30(1), 32(5), 39(1), 44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Sec. 27A. Remarriage of Surviving Spouse. 

The remarriage of a surviving spouse shall not render the surviving spouse ineligible to receive the 
pension or retirement allowance provided for in section 51a or 58 of former Act No. 135 of the Public Act of 
1945, or in the predecessor sections to section 51a or 58 of former Act No. 135 of the Public Acts of 1945. A 
surviving spouse whose pension or retirement allowance under section 51a or 58 of former Act No. 135 of the 
Public Acts of 1945 or under a predecessor section to section 51a or 58 of former Act No. 135 of the Public Acts 
of 1945 was terminated due to the surviving spouse's remarriage shall be eligible to receive that pension or 
allowance beginning on the first day of the month following the month in which written application for 
reinstatement is filed with the board, but shall not be eligible to receive the pension or allowance attributable to 
any month beginning before the effective date of reinstatement under this section. This section shall apply to a 
participating municipality upon approval by resolution of the participating municipality. 

History: 1986 PA 26, Eff. Mar. 10, 1986, and Plan Document of 1996. 

Sec. 28. Contingent Survivor Beneficiary. 

(1) 
A member or a vested former member other than a member covered by Benefit Program DC 
may name a contingent survivor beneficiary for the exclusive purpose of being paid a retirement 
allowance under this section. The naming of a contingent survivor beneficiary shall be in 
writing and filed with the retirement system. The contingent survivor beneficiary of a member 
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may be revoked or changed at any time before termination of membership. The contingent 
survivor beneficiary of a vested former member may be revoked or changed at any time prior to 
the effective date of retirement. 

(2) 
A retirement allowance shall be paid to the contingent survivor beneficiary for life, if each of 
the following conditions is met: 
(a) 
The member dies while still a member employed by a participating municipality or 
participating court or the vested former member dies prior to the effective date of 
retirement. 
(b) 
The member at time of death has the minimum years of credited service required to be a 
vested former member in the event of termination of membership. 
(c) 
The contingent survivor beneficiary is found by the Retirement Board to have an 
insurable interest in the life of the deceased member or deceased vested former 
member. 
(d) 
A spouse, if married to the member or vested former member at the time of the election, 
has agreed in writing to the naming of the contingent survivor beneficiary if that 
beneficiary is a person other than the spouse. 
(3) 
Payment of a retirement allowance to the contingent survivor beneficiary of a deceased vested 
former member shall not commence prior to the date the vested former member would have 
first satisfied age and service requirements for retirement under section 10 (without regard to 
section 10(3) or section 19B. The amount of retirement allowance payable to a contingent 
survivor beneficiary shall be computed under the following presumptions: 
(a) 
The deceased member shall be presumed to have retired under section 10 (without 
regard to section 10(3)) or section 19B, on the day preceding the member's death. The 
deceased vested former member shall be presumed to have retired under section 10 or 
section 19B on the date the vested former member would have first satisfied age and 
service requirements for retirement under section 10 (without regard to section 10(3) 
or section 19B. 
(b) 
The deceased member or deceased vested former member shall be presumed to have 
elected form of payment II and named the contingent survivor beneficiary as survivor 
beneficiary. 
(c) 
If the contingent survivor beneficiary is the spouse of the deceased member or deceased 
vested former member, the amount of retirement allowance payable to the contingent 
survivor beneficiary shall not be less than the amount that would have been payable 
under section 26 if there had been no named contingent survivor beneficiary. 
(4) 
The presumptions of retiring, election of form of payment, and naming of survivor beneficiary 
shall be effective notwithstanding the failure to satisfy the specific requirements of sections 10, 
19B and 23 with regard to such activities. 
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

Note: Bold text in subsections (3), (3)(a), and (4) as amended March 14, 2006, with immediate effect: all provisions then 
amended create the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 
12(1)(d) and (2), 19B added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and 
(4), 30(1), 32(5), 39(1), 44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

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Sec. 29. Provisions Applicable During Period Between Effective Date of Disability Retirement Allowance 
and Date Disability Retirant Attains Age 60, or Where Adopted by Resolution, the Age for Age and 
Service Retirement. 

(1) 
This section shall apply during the period between the effective date of retirement allowance 
arising from disability retirement under section 24 and the date the disability retirant attains age 
60 years. As an alternative to age 60, where provided for by Resolution of the governing 
body of the participating municipality or by administrative order of the chief judge of a 
participating court filed with the Retirement Board, there may be adopted instead for all 
current and future disability retirants the age required for age and service retirement 
under the benefit program in effect on the date the disability retirant ceased to be paid so 
long as the service requirement was met on such date. Application of the limitation shall be 
to the amount of retirement allowance under form of payment SL. The effect of an election of 
any other form of payment shall be taken into account after application of this section. 
(2) 
The amount of a retirement allowance shall not exceed the difference between: 
(a) 
One hundred percent of the retired member's final average compensation. 
(b) 
The amount of the retired member's considered income. 
(3) 
A retired member's considered income is the annual sum of income from the following sources: 
(a) 
Remuneration for personal services rendered in any gainful employment. Gainful 
employment existing at the time of disability retirement, other than with the 
participating municipality or participating court from which retired, shall not be 
considered to the extent of the amount of remuneration in the last calendar year 
preceding retirement. 
(b) 
Worker's compensation weekly benefits, redemptions, and settlements, on account of 
the same disability for which retired. Worker's compensation benefits for bona fide 
medical expenses shall not be considered. 
(c) 
Payments from any program of salary continuance, sickness and accident insurance, 
disability insurance, or program of similar purpose, financed in whole or in part by a 
participating municipality or participating court. 
(d) 
Payments received by the member from the federal social security old-age, survivors, 
disability and health insurance program. Payments received by dependents from the 
federal social security old-age, survivors, disability and health insurance program are 
not considered income under this subsection. 
(4) 
Cost of living increases in the amount of considered income from worker's compensation and 
federal social security shall be disregarded for the purposes of this section. 
(5) 
The retirement system shall compute the initial amount of retirement allowance on the 
presumption that the retirant is receiving social security disability benefits and worker's 
compensation weekly benefits. The presumed amounts shall be determined on the basis of the 
retirant's final average compensation and the single person statutory benefits. The retirant may, 
at any time, submit evidence of receipt of a lesser amount of social security and worker's 
compensation. The retirement system shall adjust the amount of retirement allowance to reflect 
the actual amount of social security and worker's compensation being received if it finds the 
submitted evidence substantiates the retirant's claim. 
(6) 
A disability retirant may submit an affidavit declaring that applications for social security and 
worker's compensation benefits have not and will not be made to avoid application of the 
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presumption of receipt. The affidavit shall also contain the promise that the disability retirant 
will immediately notify the retirement system if an application for social security or worker's 
compensation benefits is filed at a later date. 

(7) 
The retirement system shall periodically request substantiated income information from retirants 
subject to this section. Failure to provide requested information within 90 days of the request 
shall cause suspension of payment of the retirement allowance until the information is received. 
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

Note: Bold text in subsection (1) added by Board action of February 25, 1998, with immediate effect. 

Sec. 30. Commencement, Termination, and Change in Retirement Allowance. 

(1) 
A service or disability retirement allowance under section 10, 19B or 24 shall commence the 
first day of the calendar month coincident with or next following the member's or vested former 
member's date of retirement. A pre-retirement survivor retirement allowance under section 26 
or 28 shall commence the first day of the calendar month in which occurs the event causing 
payment of the retirement allowance. 
(2) 
Termination of a retirement allowance shall occur at the end of the month in which occurs the 
event causing termination. Payment shall be made for the full month of termination. 
(3) 
A change in the amount of a retirement allowance shall occur on the first day of the calendar 
month next following the month in which occurs the event causing the change. 
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 

Note: Bold text in subsection (1) added March 14, 2006, with immediate effect: all provisions then amended create the 
Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Sec. 31. Employment by Participating Municipality or Court; Special Conditions. 

The following special conditions shall apply if a retirant becomes employed by a participating 
municipality or participating court: 

(1) 
If a retirant becomes employed by the participating municipality or participating court from 
which the person retired, the retirant shall not be a member during the period of employment. 
(2) 
Payment of the retirant's retirement benefit shall continue, without change in amount or 
conditions by reason of the employment, if the retirant becomes employed by a participating 
municipality or participating court other than the participating municipality or participating 
court from which the retirant retired. The retirant shall be considered, for the purposes of 
membership and potential benefit entitlement, in the same manner as an individual with no 
previous record of employment by a participating municipality or participating court. 
History: 1992 PA 63, Eff. May 22, 1992, and Plan Document of 1996. 

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Note 1: Bold text in subsection (1) reflects Board action of August 9, 2001, effective January 1, 2002. The prior 
earnings limit (effective January 1, 1998) was $10,000 until age 70. The 2001 amendment increased the earnings limit to 
$15,000, and decreased the age limit to age 65. 

Note 2: On May 12, 2004, the Board repealed (with immediate effect) the former annual earnings limitation language 
in subsection (1). The repealed language stated that where a retiree was employed by the same participating 
municipality or court the person retired from, the MERS pension was suspended when annual earnings reached 
$15,000 (or age 65 attained). Subsection (1) as amended reaffirms the prohibition against MERS membership. 

Important Comment: As a continuing condition of MERS tax-qualified “governmental plan” status under Section 401(a) 
of the Internal Revenue Code, MERS Plan Document Section 55(1) provides: “The Retirement Board intends that the 
retirement system be a qualified pension plan under section 401 of the Internal Revenue Code and that the trust be an 
exempt organization under section 501 of the Internal Revenue Code. The Retirement Board shall administer the 
retirement system to fulfill this intent.” A retirant is a person who has had a “bona fide termination of employment in 
which the employer/employee relationship is completely severed” (IRS Information Letter 2000-0245 (September 6, 
2000); Revenue Ruling 74-254, 1974-1 CB 91); and where the person is currently receiving an accrued pension benefit 
payment immediately. Accordingly, to clearly show “complete severance,” the employer should establish a minimum 
period following termination of employment of not less than 30 days before any formal actions necessary for new 
employment occur. Where there has been a bona fide severance of employment for at least 30 days, payment of a 
pension benefit during new employment is consistent with Plan Section 55(1). Where there is no bona fide termination 
of employment of at least 30 days before hiring, payment of a pension benefit would not be consistent with Section 55(1), 
could imperil MERS qualified plan status, and the rehired individual’s receipt of benefits while reemployed subject to 
suspension by MERS. See also Michigan Attorney General Opinion #7167 (December 29, 2004). Source: MERS Legal 
Department February 2, 2005. 

End of Article III. 

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ARTICLE IV. CONTRIBUTIONS. 

Sec. 32. Contribution Programs. 

(1) 
A member shall contribute the percentage of compensation selected by the participating 
municipality or participating court from the available contribution programs. The contribution 
programs available for selection are any percentage of compensation from 0% to 10% in 
increments of 0.1%, subject to modification under Plan Section 43B. 
(2) 
Contribution programs selected before January 2, 1985 under former Act No. 135 of the Public 
Acts of 1945 shall continue to be applicable until a different contribution or benefit program is 
selected. 
(3) 
A participating municipality or participating court may select contribution program P as 
provided in section 33 in conjunction with any of the above contribution programs except the 
0% contribution program and contribution programs continued under subsection (2). 
(4) 
Contribution Program DC is governed by section 19A. 
(5) 
Contribution Program H is governed by section 19B. 
History: 1990 PA 99, Eff. June 7, 1990, and Plan Document of 1996. 

Note 1: Bold text in subsection (2) added by Board action of November 8, 2000, with immediate effect as of and 
retroactive to January 2, 1985. 

Note 2: Bold text in subsection (5) added March 14, 2006, with immediate effect: all provisions then amended create 
the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Note 3: Bold text at end of subsection (1) added by Board action on January 14, 2009, with immediate 
effect, pursuant to OAG, No. 6678 (March 27, 1991). 

Sec. 33. Contribution Program P. 

(1) 
A participating municipality or participating court that requires, on May 22, 1992, member 
contributions on account of compensation earned, by resolution of the governing body of the 
participating municipality or by administrative order of the chief judge of the participating 
court, shall adopt Contribution Program P before January 1, 1993. The resolution or 
administrative order adopting Contribution Program P shall allow each member of the 
retirement system of the participating municipality or participating court to elect whether the 
participating municipality or participating court shall pick up that member's required 
contributions on account of compensation earned after the effective date of Contribution 
Program P. The participating municipality or participating court shall provide for the election 
within 30 days of the date of the resolution or administrative order. For each member who 
elects to have his or her contributions picked up under Contribution Program P, the program 
shall become effective on the date of the resolution or the administrative order, or on the date 
the retirement system receives notification from the United States Internal Revenue Service of 
approval of this program, whichever occurs later. For each member who elects to not have his 
or her contributions picked up under Contribution Program P, the program shall not become 
effective. A member who is employed by the participating municipality or participating court 
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after the date of the resolution or administrative order adopting Contribution Program P shall 
have his or her required contributions picked up under Contribution Program P. 

(2) 
A participating municipality or court that first requires member contributions on account of 
compensation earned after May 22, 1992 shall pick up member contributions. 
(3) 
The picked up contributions shall be treated as participating municipality or participating court 
contributions for the purpose of determining tax treatment under the Internal Revenue Code. 
The participating municipality or participating court shall pay contributions picked up under 
Contribution Program P from the same source of funds that are used for paying compensation to 
the member. 
(4) 
A participating municipality or participating court shall pick up member contributions by a 
reduction in the member's cash salary or an offset against a future salary increase, or both. The 
participating municipality or participating court shall designate contributions that are picked up 
and paid to the retirement system as employer contributions in lieu of employee contributions to 
the retirement system. The members who participate in Contribution Program P shall not have 
the option of receiving the contributed amounts directly instead of having those amounts paid to 
the retirement system. 
History: 1993 PA 50, Eff. June 1, 1993, and Plan Document of 1996. 

Note 1: The 1993 amendments reflected language necessary to conform to the Internal Revenue Service’s notification 
of October 22, 1991, granting conditional pick-up approval subject to amendments. Initial conforming language was 
contained in 1992 PA 63, which took immediate effect on May 22, 1992. 

Note 2: Obsolete language in subsections (2) and (4) deleted by Board action of November 19, 1998, with immediate 
effect. 

Sec. 34. Difference Between Retirant's Accumulated Contributions and Aggregate Amount of Retirement 
Allowance Payments Made; Payment. 

If all retirement allowance payments terminate before there has been paid an aggregate amount, 
including any lump sum distribution under Benefit Program DROP+ provided in section 10, equal to the 
retirant's accumulated contributions at the date retirement was effective, the difference between the retirant's 
accumulated contributions and the aggregate amount of retirement allowance payments made and any lump 
sum distribution made under Benefit Program DROP+ shall be paid to such individual or individuals as the 
retirant shall have designated in writing and filed with the board. Written consent by the member’s spouse to 
the beneficiary named is required unless the spouse is beneficiary to 100% of the balance; this requirement may 
be waived by the Retirement Board if the signature of the member’s spouse cannot be obtained because of 
extenuating circumstances. If there is no such individual surviving the retirant, the difference shall be paid to 
the deceased individual's estate. 

History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 

Note: Bold text added by Board action of May 14, 2003, with immediate effect, along with companion amendments to 
sections 2C(7) and 31(1); and addition of section 10(6), 11(1)(p) and 11(2)(e). 

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Sec. 35. Payment of Accumulated Contributions. 

(1) 
The accumulated contributions of a former member whether vested or not shall be paid to the 
member upon satisfaction of each of the following conditions: 
(a) 
The former member files a written application for payment with the Retirement Board. 
(b) 
The break in membership is at least 30 days or the request is made as a result of being 
laid off for at least 30 days as provided in section 3. 
(c) 
The member’s spouse has consented in writing to the payment. This requirement 
may be waived by the Retirement Board if the signature of the member’s spouse 
cannot be obtained because of extenuating circumstances. 
(2) 
If a member or former member dies and no retirement allowance becomes payable by the 
retirement system on account of the death, the deceased individual's accumulated contributions 
shall be paid to such individual or individuals as the deceased individual shall have designated 
in writing and filed with the Retirement Board. Written consent by the member’s spouse to the 
beneficiary named is required unless the spouse is beneficiary to 100% of the balance; this 
requirement may be waived by the Retirement Board if the signature of the member's spouse 
cannot be obtained because of extenuating circumstances. If there is no such named individual 
surviving the deceased individual, the accumulated contributions shall be paid to the deceased 
individuals' estate. 
(3) 
Payment of accumulated contributions as provided in this section may be made in installments. 
(4) 
The accumulated contributions of a former member or a deceased member or a deceased former 
member which remain on deposit in the reserve for employee contributions shall be transferred 
from the reserve for employee contributions to the reserve for employer contributions of the 
former employer(s) if each of the following conditions is met. 
(a) 
No retirement allowance is payable or will become payable on account of the service 
for which member contributions were made. 
(b) 
One year and eleven months has passed since the latter of the former member's 
termination of employment or the former member's or deceased member's death. 
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 

Note: Bold text added to subsection (1) and (1)(c) by Board action of August 20, 1998, with immediate effect. 

End of Article IV. 

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ARTICLE V. RETIREMENT BOARD ADMINISTRATION. 

Sec. 36. Retirement Board; Creation; Board as Public Corporation; Powers and Duties; Administrative 
Functions; Membership; Rules of Procedure; Record of Proceedings; Quorum; Voting; Term of Office; 
Oath; Expenses; Absence of Member from Work; Vacancy; Chairperson and Chairperson Pro tem; 
Chief Executive Officer. [MCL 38.1536] 

(1) 
A Retirement Board is created to administer this Act. Before the certification date, the 
Retirement Board shall operate within the department of management and budget. On and after 
the certification date, the retirement system shall become a public corporation and shall no 
longer operate within the executive branch of this state. 
(2) 
On and after the certification date, the Retirement Board has all of the following powers and 
duties: 
(a) 
The Retirement Board shall determine and establish all of the provisions of the 
retirement system affecting benefit eligibility, benefit programs, contribution amounts, 
and the election of municipalities, judicial circuit courts, judicial district courts and 
judicial probate courts to be governed by the provisions of the retirement system. The 
Retirement Board shall establish all retirement system provisions. As of 12:01 a.m. on 
the certification date, [the Retirement Board by action taken at a special meeting on 
August 1, 1996, affirmed by resolution that the] retirement system provisions shall not 
differ materially from the defined benefit provisions that are in effect under this Act at 
11:59 p.m. on the day immediately before the certification date. This subdivision does 
not limit the Retirement Board's authority after the certification date to establish 
additional programs including but not limited to defined benefit, defined contribution, 
ancillary benefits, health and welfare benefits, and other postemployment benefit 
programs. [Effective September 24, 1996], [t]he Retirement Board [may] adopt[ed] the 
provisions of the Reciprocal Retirement Act, 1961 PA 88, MCL 38.1101 to 38.1106 on 
behalf of the employees of the Retirement Board. 

(b) 
The Retirement Board has the full and exclusive authority and full responsibility to 
employ and pay for all professional services including but not limited to actuarial, 
investment, legal, accounting, and any other services that the Retirement Board 
considers necessary for the proper operation of the retirement system. The power 
granted to the Retirement Board in this subdivision includes complete control of the 
procurement process. 
(c) 
The Retirement Board shall appoint a chief executive officer and any other employees 
for which the Retirement Board establishes positions. The Retirement Board shall 
establish the compensation of all persons appointed by the board. 
(d) 
The Retirement Board shall arrange for an annual actuarial valuation and report of the 
actuarial soundness of each participating municipality and court to be prepared by an 
independent actuary based upon data compiled and supplied by employees of the 
retirement system. The Retirement Board shall adopt actuarial tables, assumptions, and 
formulas after consultation with the actuary. 
(e) 
The Retirement Board shall arrange for annual audits of the records and accounts of the 
retirement system by a certified public accountant or by a firm of certified public 
accountants pursuant to generally accepted auditing standards and the Uniform 
Budgeting and Accounting Act, 1968 PA 2, MCL 141.421 to 141.440a. 
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(f) 
The Retirement Board shall prepare an annual report for each fiscal year in compliance 
with generally accepted accounting principles. The report shall contain information 
regarding the financial, actuarial, and other activities of the retirement system during 
the fiscal year. The Retirement Board shall furnish a copy of the annual report to the 
governor and a copy in print or electronic format to each house of the legislature, 
each participating municipality, and each participating court. The Retirement Board 
shall make the report available to all members upon request. The report shall also 
contain a review of the actuarial valuation required under subdivision (d), if available. 
(g) 
The Retirement Board shall appoint an attorney to be the legal advisor of the board and 
to represent the board in all proceedings. 
(h) 
The Retirement Board shall appoint or employ custodians of the assets of the retirement 
system. The custodians shall perform all duties necessary and incidental to the 
custodial responsibility and make disbursements of authorized retirement system 
payments from the funds of the retirement system. 
(i) 
The Retirement Board shall perform other functions that are required for the execution 
of the provisions of this Act. 
(j) 
The Retirement Board shall establish the time and location of the meetings of the 
Retirement Board and the time and location of the annual meeting of the retirement 
system, consistent with the provisions of the Open Meetings Act, 1976 PA 267, MCL 
15.261 to 15.275. 
(3) 
Before the certification date, the provisions of the Executive Organization Act of 1965, 1965 
PA 380, MCL 16.101 to 16.608, and the Management and Budget Act, 1984 PA 431, MCL 
18.1101 to 18.1594, shall govern the administrative functions of the retirement system. 
However, any provision of law in actual conflict with the provisions of the amendatory act that 
added this sentence [1996 PA 220] shall not apply. 
(4) 
On and after the certification date, the Retirement Board consists of the following nine (9) 
members, each of whom, excepting the retiree member and the Retirement Board appointees, 
shall be from a different county at the time of appointment: 
(a) 
Two (2) members appointed by the Retirement Board who have knowledge or 
experience in retirement systems, administration of retirement systems, or investment 
management or advisory services. 
(b) 
One (1) member who is a retiree of the system, appointed by the board. 
(c) 
Three (3) members of the retirement system who are officers of a participating 
municipality or court, who shall be designated as officer board members. 
(d) 
Three (3) employee members of the retirement system who are not officers of a 
participating municipality or court, who shall be designated as employee board 
members. 
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(5) 
The Retirement Board shall adopt its own rules of procedure and shall keep a record of its 
proceedings. Five (5) members of the Retirement Board shall constitute a quorum at any 
meeting of the Retirement Board and at least five (5) concurring votes shall be necessary for 
any decision by the Retirement Board. Each member of the Retirement Board shall be entitled 
to one (1) vote on each question before the Retirement Board. 
(6) 
The regular term of office of members of the Retirement Board is three (3) years. Each member 
of the Retirement Board shall take an oath of office before assuming the duties of the position. 
Members of the Retirement Board shall serve without compensation with respect to their duties, 
but shall be reimbursed by the retirement system for their actual and necessary expenses 
incurred in the performance of their duties. A participating municipality or court employing a 
member of the Retirement Board shall treat absences from work on account of Retirement 
Board business in such a manner that the individual does not suffer loss of pay or benefits. 
(7) 
A vacancy shall occur on the Retirement Board upon the occurrence of any of the following 
events: 
(a) 
An officer board member ceases to be eligible for nomination as an officer board 
member. 
(b) 
An employee board member ceases to be eligible for nomination as an employee board 
member. 
(c) 
Failure to attend three (3) consecutive scheduled meetings of the Retirement Board, 
unless excused for cause by majority vote of the board members attending the meeting. 
(8) 
A vacancy occurring on the Retirement Board at least 120 days before the expiration of a term 
of office shall be filled by the Retirement Board. Board appointments under this subsection 
shall be for the period ending on the December 31 next following the date of the vacancy. For 
the officer board members and employee board members, a replacement for any further portion 
of the unexpired term shall be filled pursuant to section 45. For the 2 appointed board members 
and the retiree board member, a replacement for any further portion of the unexpired term shall 
be filled pursuant to subsection (4). 
(9) 
The Retirement Board shall select from its members a chairperson and a chairperson pro-tem. 
(10) 
The Retirement Board shall employ a chief executive officer. The chief executive officer shall 
do all of the following: 
(a) 
Manage and administer the retirement system under the supervision and direction of the 
Retirement Board. 
(b) 
Invest the assets of the retirement system, as directed by the Retirement Board, 
consistent with the public employee retirement system investment act, 1965 PA 314, 
MCL 38.1132 to 38.1140m, which act governs the investments of assets of public 
employee retirement systems. 
(c) 
Annually prepare and submit to the Retirement Board for review, amendment, and 
adoption an itemized budget showing the amount required to pay the retirement 
system's expenses for the following fiscal year. 
(d) 
Perform other duties as the Retirement Board, in its discretion, shall delegate to the 
chief executive officer. 
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History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996; see Sec. 1, Note 1 of this Plan. 

Note 1: 
Bracketed text in subparagraph (2)(a) and subsection (3) added. 

Note 2: Bold text changes pursuant to 2004 PA 490, which took immediate effect December 27, 2004, amending this 
section 36 (and sections 2A and 2B). 

Sec. 36A. Denial of Benefits; Hearing Process; Appeal to Retirement Board. 

(1) 
Where a claim for benefits is denied by the retirement system, the claimant shall be notified in 
writing with the reasons for denial. 
(2) 
Within 60 days of the date of mailing of the written denial, the claimant may appeal the denial, 
and request a hearing to be conducted by the Board's hearing officer. 
(3) 
Hearings shall be conducted in accordance with the provisions of Chapter IV of the 
Administrative Procedures Act, 1969 PA 306, sections 24.271-24.287 of the Michigan 
Compiled Laws. 
(4) 
At a hearing, the claimant may appear in person, by authorized agent or through counsel, and 
the retirement system may be represented by staff or through counsel. 
(5) 
Following issuance of a proposal for decision by the hearing officer and the opportunity to file 
exceptions, the Retirement Board shall review the proposal for decision and issue a final 
decision. 
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996. 

Sec. 36B. Indemnification. 

The Retirement Board shall indemnify to the extent authorized or permitted by law (and consistent with 
the Plan's favorable tax qualified status under section 401 of the Internal Revenue Code) any person, and such 
person's heirs and legal representatives, who is made or threatened to be made a party to any action, suit or 
proceeding (whether civil, criminal, administrative or investigative) whether brought by or in the right of the 
Retirement Board or system or otherwise, by reason of the fact that such person is or was a trustee, director, 
officer, employee or agent of the Retirement Board or system or such person served on any formally constituted 
advisory body or committee of the Retirement Board. There is no duty to indemnify where such person is 
judicially determined to have incurred liability due to fraud, gross neglect, or malfeasance in the exercise and 
performance of their duties. 

History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996. 

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Sec. 37. Audit Report. 

The reports provided for under section 36(2)(e) and (f) shall be submitted to the Retirement 
Board not later than the end of the fifth (5th) month that follows the end of the fiscal year. 

History: 1989 PA 51, Eff. June 12, 1989, and Plan Document of 1996. 

Note 1: 
Section 37 revised by Board action of August 20, 1998, with immediate effect. 

Note 2: Per Board action of March 12, 1997, the Retirement System’s fiscal year was changed from the prior State 
fiscal year (October 1–September 30) to January 1 to December 31, effective January 1, 1998. 

Sec. 38. Experience Tables; Data and Information; Actuarial Operation and Investigations. 

The Retirement Board shall adopt the experience tables which are necessary for the operation of the 
retirement system on the actuarial basis determined as provided in section 45A. Sufficient data and information 
shall be kept by the retirement system to facilitate the actuarial investigations of the actual experience of the 
retirement system. 

History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 

Sec. 39. Retirement Board as Trustees of Money and Other Assets; Investments; Investments Counsel; 
Purpose of Investments; Discretionary Authority. [MCL 38.1539] 

(1) 
The Retirement Board shall be the trustees of the money and other assets of the retirement 
system, except as otherwise provided in section 19A and section 19B. The Board shall have 
full power and authority to invest and reinvest the money and other assets of the retirement 
system subject to all terms, conditions, limitations, and restrictions imposed on the investment 
of assets of public employee retirement systems by Act No. 314 of the Public Acts of 1965, 
being sections 38.1132 et seq. of the Michigan Compiled Laws as amended. The Retirement 
Board may employ outside investment counsel to advise the Board in the making and 
disposition of investments. 
(2) 
All money and other assets of the retirement system shall be held and invested for the sole 
purpose of meeting disbursements authorized under this act and shall be used for no other 
purpose. In exercising its discretionary authority with respect to the management of the money 
and other assets of the retirement system, the Retirement Board shall exercise the care, skill, 
prudence and diligence under the circumstances then prevailing, that a person of prudence, 
acting in a like capacity and familiar with such matters, would use in the conduct of an 
enterprise of like character with like aims. 
History: 1988 PA 500, Eff. Dec. 29, 1988, and 1996 PA 220, and Plan Document of 1996; see Sec. 1, Note 1 
of this Plan. 

Note: Bold text in subsection (1) added March 14, 2006, with immediate effect: all provisions then amended create the 
Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

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Sec. 40. Prohibited Conduct. [MCL 38.1540] 

Members of the Retirement Board and employees of the retirement system are prohibited from: 

(1) 
Having any beneficial interest, direct or indirect, in any investment of the retirement system. 
(2) 
Being an endorser or obligor, or providing surety, for any money loaned to or borrowed from 
the retirement system. 
(3) 
Borrowing any of the money or other assets of the retirement system. 
(4) 
Receiving any pay or emolument from any individual or organization, other than compensation 
paid by the retirement system, with respect to investments of the retirement system. 
History: 1984 PA 427, Eff. Jan. 2, 1985, and 1996 PA 220, and Plan Document of 1996; see Sec. 1, Note 1 of 
this Plan. 

Sec. 41. Election to Become Participating Municipality; Vote; Specifying Effective Date of Participation 
and Applicable Benefit and Contribution Programs; Establishment of Benefit and Contribution Program 
Coverage Classifications; Certification of Participation; Conditions to Participation. 

(1) 
A municipality may elect to become a participating municipality by either an affirmative vote 
by a majority of the members on the municipality's governing body, or an affirmative vote by 
the qualified electors of the municipality. The municipality's governing body shall specify the 
effective date of participation and the benefit programs and member contribution programs that 
shall apply to the employees of the municipality. The Retirement Board shall establish benefit 
program coverage classifications and member contribution program coverage classifications. 
All employees of a municipality who are in the same benefit program coverage classification 
shall be covered by the same benefit program. All employees of a municipality who are in the 
same member contribution program classification shall be covered by the same member 
contribution program. 
(2) 
The clerk or secretary of the municipality shall certify to the retirement system, in the manner 
and form prescribed by the Retirement Board, the determination of the municipality to 
participate in the retirement system. The certification shall be made within 10 days from the 
date of the vote by the governing body or the date of the canvass of votes of the qualified 
electors. 
(3) 
A municipality (or bargaining unit or non-bargaining group) shall not participate under this 
Plan unless on the effective date of participation 10% or more of all employees of the 
municipality (or bargaining unit or non-bargaining group) are included as members of the 
retirement system. However, a municipality that includes less than 10% of all municipal 
employees as members (or bargaining unit or non-bargaining group) of a retirement system 
under this Plan may participate if the municipality has elected to include [only] all individuals 
first hired after the effective date of the municipality's participation. 
History: 1989 PA 51, Eff. June 12, 1989, and Plan Document of 1996. 

Note: Subsection (3) amended by bold text added and [bracketed] language deleted, by Board action of 
January 14, 2009, with immediate effect. The added language reflects MERS longstanding interpretation 
since 1989. 

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Sec. 41A. Election to Become Participating Court; Administrative Order; Resolution; Specifying 
Effective Date of Participation and Applicable Benefit and Contribution Programs; Classifications; 
Certification of Participation; Conditions to Participation. 

(1) 
A judicial circuit court, judicial district court, or judicial probate court may elect to become a 
participating court by administrative order of the court's chief judge that is concurred in by 
resolution of the governing bodies of the municipalities that are required by law to fund the 
judicial circuit court, judicial district court, or judicial probate court, or by resolution of the joint 
board or commission of the municipalities that are required by law to fund the judicial circuit 
court, judicial district or judicial probate court if those municipalities have entered into a 
contract to transfer functions and responsibilities pursuant to Act No. 8 of the Public Acts of the 
Extra Session of 1967, being sections 124.531 to 124.536 of the Michigan Compiled Laws. The 
chief judge, in the administrative order, shall specify the effective date of participation and the 
benefit programs and member contribution programs that shall apply to the employees of the 
court. The Retirement Board shall establish benefit program coverage classification and 
member contribution program coverage classifications. All employees of a court who are in the 
same benefit program coverage classification shall be covered by the same benefit program. All 
employees of a court who are in the same member contribution program coverage classification 
shall be covered by the same member contribution program. 
(2) 
The chief judge of the judicial circuit court, judicial district court, or judicial probate court shall 
certify to the retirement system, in the manner and form prescribed by the Retirement Board, 
the determination of the court to participate in the retirement system. The certification shall be 
made within 10 days after the date of concurrence of the governing bodies of the municipalities 
that are required by law to fund the court or the joint board or commission of the municipalities 
that are required by law to fund the court. 
(3) 
A court (or bargaining unit or non-bargaining group) shall not participate under this Plan 
unless on the effective date of participation 10% or more of all employees of the court (or 
bargaining unit or non-bargaining group) are included as members of the retirement system. 
However, a court that includes less than 10% of all judicial employees (or bargaining unit or 
non-bargaining group) as members of a retirement system under this Plan may participate if 
the court has elected to include [only] all individuals first hired after the effective date of the 
court's participation. 
History: 1989 PA 51, Eff. June 12, 1989, and Plan Document of 1996. 

Note: Subsection (3) amended by bold text added and [bracketed] language deleted, by Board action of 
January 14, 2009, with immediate effect. The added language reflects MERS longstanding interpretation 
since 1989. 

Sec. 42. Actuarial Determination of Contribution Requirements. 

A municipality, a judicial circuit court, a judicial district court, or a judicial probate court or the 
retirement system may request the system's actuary to make an actuarial determination of the contribution 
requirements that would be associated with the municipality's or court's participation in the retirement system. 
The municipality or court shall furnish the employee information needed for the actuarial determination, as 
specified by the Retirement Board. The cost of this actuarial determination shall be paid as determined by the 
Retirement Board. 

History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

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Sec. 43. Election to Change Benefit and Contribution Programs; Vote; Specifying Effective Date of 
Change in Coverage and Applicable Benefit and Contribution Programs; Coverage Classification and 
Certification Conditions; Accrued Benefit Not Reduced by Change; Certification of Determination; 
Actuarial Determination of Contribution Requirements. 

(1) 
A participating municipality may elect to change the benefit programs and member contribution 
programs which apply to the employees of the participating municipality by an affirmative vote 
by a majority of the members of the participating municipality's governing body. The 
participating municipality shall specify the effective date of the change in coverage and the 
benefit programs and member contribution programs which shall apply to the employees of the 
participating municipality from the effective date of the change. The effective date of the 
change in coverage shall be the first day of a calendar month. The coverage classification and 
certification conditions imposed by section 41 shall apply to a change in coverage under this 
section. A change in benefit program or member contribution program shall not reduce the 
accrued benefit of any member. 
(2) 
The clerk or secretary of the municipality shall certify to the retirement system, in the manner 
and form prescribed by the Retirement Board, the determination of the participating 
municipality. The certification shall be made within 10 days after the date of the vote by the 
governing body. 
(3) 
The participating municipality or the board may request the actuary to make an actuarial 
determination of the participating municipality's contribution requirements associated with a 
change in coverage. The cost of the actuarial determination shall be paid by the participating 
municipality in either case. 
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 

Sec. 43A. Election of Participating Court to Change Benefit and Contribution Programs; Administrative 
Order; Resolution; Specifying Effective Date of Change in Coverage and Applicable Benefit and 
Contribution Programs; Coverage Classification and Certification Conditions; Accrued Benefit Not 
Reduced by Change; Certification of Determination; Actuarial Determination of Contribution 
Requirements. 

(1) 
A participating court may elect to change the benefit programs and member contribution 
programs that apply to the employees of the participating court by administrative order of the 
chief judge that is concurred in by resolution of the governing bodies of the municipalities that 
are required by law to fund the court or by resolution of the joint board or commission of the 
municipalities that are required by law to fund the court if those municipalities have entered into 
a contract to transfer functions and responsibilities pursuant to Act No. 8 of the Public Acts of 
the Extra Session of 1967, being sections 124.531 to 124.536 of the Michigan Compiled Laws. 
The chief judge, in the administrative order shall specify the effective date of the change in 
coverage and the benefit programs and member contribution programs that shall apply to the 
employees of the participating court from the effective date of the change. The effective date of 
the change in coverage shall be the first day of a calendar month. The coverage classification 
and certification conditions imposed by section 41A shall apply to a change in coverage under 
this section. A change in benefit program or member contribution program shall not reduce the 
accrued benefit of any member. 
(2) 
The chief judge of the participating court shall certify to the retirement system, in the manner 
and form prescribed by the Retirement Board, the determination of the participating court under 
subsection (1). The certification shall be made within 10 days after the date of the concurrence 
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5-8 

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of the governing bodies of the municipalities that are required by law to fund the court or the 
joint board or commission of the municipalities that are required by law to fund the court. 

(3) 
The participating court or the board may request the actuary to make an actuarial determination 
of the participating court’s contribution requirements associated with a change in coverage. The 
cost of the actuarial determination shall be paid by the participating court. 
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

Sec. 43B. Collective Bargaining Agreements; Benefit Modifications; Extension of Modified Benefits to 
Non-Bargaining Groups. 

(1) 
Pursuant to a collective bargaining agreement entered into pursuant to 1947 PA 336, being 
sections 423.201 et seq. of the Michigan Compiled Laws, a participating municipality or 
participating court may provide for retirement benefits which are modifications of standard 
retirement benefits otherwise included in the plan. 
(2) 
In the manner provided in section 43 or section 43A, the participating municipality or 
participating court may extend such collectively bargained retirement benefit modifications to 
other employees of the participating municipality or participating court. 
(3) 
As a condition of the retirement system administering retirement benefit modifications under 
this section 43B, the participating municipality or participating court shall agree to compensate 
the system for all reasonable and necessary additional costs of administering such benefit 
modifications. 
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996. 

Sec. 43C. Fiscal Responsibility: Benefit Adoption Eligibility Requirements Effective July 1, 2006. 

The Board administers the plan and the benefit promises made by participating municipalities and courts 
to their employees, for the exclusive benefit of the members, vested former members, retirees and beneficiaries. 
Benefit changes have a substantial financial impact on long-term contribution requirements for each 
participating entity that must finance the constitutionally protected benefit promises made to employees under 
the Michigan Constitution, article 9, section 24. The adverse impact of benefit changes on plans that are 
actuarially funded at low levels, which the Board determines to be less than 50% funded prior to January 1, 
2008, and 60% funded commencing January 1, 2008, requires remedial action. To further safeguard the long-
term actuarial and financial integrity of the retirement system and its individual member plans, and to promote 
understanding of the impact that benefit changes have on plan integrity and taxpayer-financed employer 
contributions to fund benefit obligations, the Board enacts this section in the exercise of its duties as fiduciary 
and trustee for the retirement system, and for each participating municipality and court, and all MERS trust 
assets, as provided in MCLA 38.1536(2)(a) and 38.1539(1); Plan sections 36(2)(a) and 39(1) 

(1) 
At the time a supplemental actuarial valuation is requested under sections 11, 20, 21, 43 or 43A, 
and at the time a new benefit provision is adopted, the employer must be current in the payment 
of all required employer and member contributions. 
(2) 
Both the requesting division and the participating municipality or court must be not less than 
60% funded commencing January 1, 2008, on an actuarial basis as of the last December 31 
valuation date, based on the actual benefit provisions in effect when the supplemental valuation 
is requested or completed. The governing body may make a cash contribution, or transfer 
employer assets from a different division, or both, in order to meet the 60% requirement. If the 
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requirement is not met, MERS and its actuary will not complete the requested supplemental 
valuation. 

(3) 
The proposed benefit provisions may not be adopted if the results of the supplemental valuation 
disclose there would be a funded percentage less than 60% on an actuarial basis (using the same 
valuation date as in subsection (2)) commencing January 1, 2008, for either the division or the 
entire municipality or court. The governing body may make a cash contribution, or transfer 
employer assets from a different division, or both, in order to meet the 60% requirement. 
(4) 
Beginning with the December 31, 2006 annual actuarial valuations, the 30-year maximum 
amortization period for unfunded accrued liability shall be reduced each following 
valuation year by one year, to a 20-year maximum amortization period: 
December 31, 2005 Valuation: 30 years 
December 31, 2006 Valuation: 29 years 
December 31, 2007, 2008, 2009 Valuations: 28 years 
December 31, 2010 Valuation: 27 years 
December 31, 2011 Valuation: 26 years 
December 31, 2012 Valuation: 25 years 
December 31, 2013 Valuation: 24 years 
December 31, 2014 Valuation: 23 years 
December 31, 2015 Valuation: 22 years 
December 31, 2016 Valuation: 21 years 
December 31, 2017 Valuation: 20 years 

(5) 
The provisions of this section constitute Board action in its exclusive capacity of fiduciary and 
trustee for the retirement system, the participating municipalities and courts, and all MERS trust 
assets, as provided in MCLA 38.1536(2)(a) and 38.1539(1); Plan sections 36(2)(a) and 39(1). 
In the event any alteration of this section 43C is made or occurs, under section 43B of the Plan 
Document concerning collective bargaining or under any other plan provision or law, MERS 
shall not recognize such action, other than in accordance with this section. 
History: 

Note 1: Section 43C added by Board action of March 14, 2006, with an effective date of July 1, 2006. 
The language of subsection (2) is based on Requirements to Foster Fiscal Responsibility for Participating 
Municipalities with Respect to Benefit Increases, adopted by the Board on September 22, 2005, and effective 
October 1, 2005. To further implement subsection (4), section 2C(3)(b) was also amended March 14, 2006. 


Note 2: Bold language added September 18, 2007, increasing minimum funded percentage from 50% to 
60%, and declining the amortization schedule five more years from 25 to 20 years, with an effective date of 
January 1, 2008. Companion amendment was simultaneously made to Plan section 2C(3)(b). 

Note 3: Underlined language in subsection (1) added, and subsection (4) revised, with immediate effect, by 
Board action of March 11, 2009 

Sec. 44. Election to Terminate Participation; Vote; Certification of Determination; Effective Date of 
Termination of Participation; Effect of Termination; Disposition of Balance in Reserve. 

(1) 
A participating municipality may elect to terminate participation by an affirmative vote by the 
qualified electors of the participating municipality. The clerk or secretary of the participating 
municipality shall certify to the retirement system, in the manner and form prescribed by the 
Retirement Board, the determination of the participating municipality to terminate participation. 
The certification shall be made within 10 days after the canvass of votes of the qualified 
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electors. The effective date of termination of participation shall be the first day of the 
participating municipality's fiscal year that is at least 6 months after the date of the vote by the 
qualified electors. Termination of participation shall preclude a municipality from again 
becoming a participating municipality during the 5-year period immediately following the 
effective date of the termination of participation. 

(2) 
The disposition of balances in the reserve for employee contributions, the reserve for defined 
contribution plan and the reserve for employer contributions when a participating municipality 
terminates participation in the retirement system pursuant to subsection (1) shall be as follows: 
(a) 
The balance standing to each person's credit in the reserve for employee contributions 
shall be distributed to the person in the form of either a single sum payment or an 
annuity which is the actuarial equivalent of the single sum payment, as determined by 
the Retirement Board. 
(b) 
The balance standing to each person's credit in the reserve for defined contribution plan 
shall be distributed to the person as provided in section 19A and section 19B. 
(c) 
The Retirement Board shall adjust the balance in the reserve for employer contributions 
to a market value basis for the purpose of determining the amount of an insufficiency or 
the amount of an overage under this subdivision. The adjusted balance in the reserve 
for employer contributions shall be periodically compared to the actuarial accrued 
liabilities, including a margin for experience fluctuation, for accrued pensions payable 
and to be paid persons on account of the municipality's participation in the retirement 
system. If at the time of a comparison the adjusted balance is insufficient to fully cover 
the actuarial accrued liabilities, the insufficiency shall be an obligation of the 
municipality and shall be liquidated as determined by the Retirement Board. If at the 
time of a comparison the adjusted balance is more than sufficient to fully cover the 
actuarial accrued liabilities, the overage shall be returned to the municipality in a single 
sum or, at the request of the municipality, transferred to another retirement plan 
covering the employees of the municipality. 
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 

Note: Bold text in subsection (2)(b) added March 14, 2006, with immediate effect: all provisions then amended create 
the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Sec. 44A. Election of Participating Court to Terminate Participation; Vote, Certification of 
Determination; Effective Date of Termination of Participation; Effect of Termination; Disposition of 
Balance in Reserve. 

(1) 
A participating court may elect to terminate participation by an affirmative vote by the qualified 
electors of the municipalities that are required by law to fund the court. The chief judge of the 
participating court shall certify to the retirement system, in the manner and form prescribed by 
the Retirement Board, the determination of the participating court to terminate participation. 
The certification shall be made within 10 days after the canvass of votes of the qualified 
electors. The effective date of termination of participation shall be the first day of the 
participating court's fiscal year that is at least 6 months after the date of the vote by the qualified 
electors. Termination of participation shall preclude a court from again becoming a 
participating court during the 5-year period immediately following the effective date of the 
termination of participation. 
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(2) 
The disposition of balances in the reserve for employee contributions, the reserve for defined 
contributions and the reserve for employer contributions when a participating court terminates 
participation in the retirement system pursuant to subsection (1) shall be as follows: 
(a) 
The balance standing to each person's credit in the reserve for employee contributions 
shall be distributed to the person in the form of either a single sum payment or an 
annuity that is the actuarial equivalent of the single sum payment, as determined by the 
Retirement Board. 
(b) 
The balance standing to each person's credit in the reserve for defined contribution plan 
shall be distributed to the person as provided in section 19A and section 19B. 
(c) 
The Retirement Board shall adjust the balance in the reserve for employer contributions 
to a market value basis for the purpose of determining the amount of an insufficiency or 
the amount of an overage under this subdivision. The adjusted balance in the reserve 
for employer contributions shall be periodically compared to the actuarial accrued 
liabilities, including a margin for experience fluctuation for accrued pensions payable 
and to be paid persons on account of the court's participation in the retirement system. 
If at the time of a comparison the adjusted balance is insufficient to fully cover the 
actuarial accrued liabilities, the insufficiency shall be an obligation of the court and 
shall be liquidated as determined by the Retirement Board. If at the time of a 
comparison the adjusted balance is more than sufficient to fully cover the actuarial 
accrued liabilities, the overage shall be returned to the court in a single sum or, at the 
request of the chief judge of the court, transferred to another retirement plan covering 
the employees of the court. 
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

Note: Bold text in subsection (2)(b) added March 14, 2006, with immediate effect: all provisions then amended create 
the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Sec. 45. Annual Meeting; Selection of Members to Retirement Board; Transaction of Business; Notice of 
Meeting; Certification of Delegates; Conduct of Election; Nominating Procedures; Referendum. [MCL 
38.1545] 

(1) 
The Retirement Board shall call an annual meeting of the retirement system for the purpose of 
selecting members of the Retirement Board and the transaction of such other business as the 
Retirement Board determines. Notice of the annual meeting shall be sent to each participating 
municipality and participating court, by registered mail, at least 30 days before the date of the 
meeting. Notice of the annual meeting shall be sent to each retiree at least 30 days before the 
date of the meeting. 
(2) 
The governing body of each participating municipality shall certify the names of 2 delegates to 
the annual meeting. One delegate shall be a member who is an officer of the participating 
municipality, selected by the governing body of the participating municipality. The other 
delegate shall be a member who is not an officer of the participating municipality, elected by 
the member employees of the participating municipality. The election shall be by secret ballot 
and shall be conducted by an officer of the participating municipality. The election shall be 
conducted in a manner that affords each member employee an opportunity to vote. 
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(3) 
The chief judge of each participating court shall certify the names of 2 delegates to the annual 
meeting. One delegate shall be a member who is an officer of the participating court, selected 
by the chief judge of the participating court. The other delegate shall be a member who is not 
an officer of the participating court, elected by the member employees of the participating court. 
The election shall be by secret ballot and shall be conducted by an officer of the participating 
court. The election shall be conducted in a manner that affords each member employee an 
opportunity to vote. 
(4) 
The nomination of candidates for election to the Retirement Board shall be made pursuant to 
procedures established by the Retirement Board and adopted by the delegates to an annual 
meeting of the retirement system. A nomination for the position of officer board member shall 
be made by a member who is an officer of a participating municipality or of a participating 
court. A nomination for the position of employee board member shall be made by a member 
who is not an officer of a participating municipality or of a participating court. 
(5) 
The Retirement Board shall hold a referendum of the assembled delegates to elect members of 
the Retirement Board. The referendum shall be conducted pursuant to procedures established 
by the Retirement Board and adopted by the delegates to an annual meeting of the retirement 
system. An individual elected to the Retirement Board shall become a member of the 
Retirement Board on the January 1 immediately following the referendum. 
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996; see Sec. 1, Note 1 of this Plan. 

End of Article V. 

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ARTICLE VI. FUNDING AND RESERVES. 

Sec. 45A. Funding Objective of Retirement System; Contribution Requirement; Notice and Payment of 
Contribution Obligation; Interest and Penalty Charge. 

(1) 
The funding objective of the retirement system is to establish and receive contributions during 
each fiscal year that are sufficient to fully cover the actuarial cost of benefits likely to be paid on 
account of service rendered by members during the fiscal year, the normal cost requirements of 
the retirement system, and amortize the unfunded actuarial costs of benefits likely to be paid on 
account of service rendered before the fiscal year, the unfunded actuarial accrued liability of the 
retirement system. Distinct contribution requirements shall be established for each participating 
municipality and participating court. 
(2) 
Contribution requirements shall be actuarially determined using experience assumptions and 
level percent of payroll actuarial cost methods adopted by the Retirement Board. 
(3) 
The retirement system shall annually inform each participating municipality and participating 
court of its contribution obligation for the fiscal year. The contribution requirement shall be 
paid to the retirement system pursuant to procedures and schedules established by the 
Retirement Board. The retirement system may assess an interest charge and a penalty charge on 
any payment not made within 15 days after its due date. 
History: 1996 PA 220, enacting section 2, Eff. Aug. 15, 1996, and Plan Document of 1996. 

Sec. 46. Reserve for Employee Contributions; Subaccounts; Deduction of Contributions from 
Compensation of Member; Consent and Agreement to Deduction; Discharge and Acquittance of Claims 
and Demands; Certification of Compensation Paid; Payment of Aggregate Amount of Contributions to 
Retirement System; Remittance of Member Contributions; Interest and Penalty Charge. 

(1) 
The reserve for employee contributions is the account in which member contributions, (other 
than the contributions of members covered by Benefit Program DC or Benefit Program H), are 
accumulated and from which shall be made refunds and transfers of accumulated member 
contributions. The retirement system shall maintain 1 or more separate individual accounts for 
each person having an interest in this reserve. 
(2) 
A participating municipality or participating court shall cause the applicable member 
contributions to be deducted from the compensation of each member in its employ. 
Continuation of employment by the member shall constitute consent and agreement to the 
deduction of the applicable member contribution. Payment of compensation less the deduction 
shall be a complete discharge of all claims for compensation for service rendered by the 
member to the participating municipality or participating court. 
(3) 
A participating municipality or participating court shall certify to the retirement system the 
amount of compensation paid a member employed by the participating municipality or 
participating court. A participating municipality or participating court shall pay to the 
retirement system the aggregate amount of member contributions collected. Remittance of 
member contributions shall be made in accordance with procedures and schedules established 
by the Retirement Board. The retirement system may assess an interest charge and a penalty 
charge on any payment not made within 15 days after its due date. 
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(4) 
Accumulated member contributions shall be transferred from the reserve for employee 
contributions to the reserve for retired benefit payments upon the retirement or death of a 
member or vested former member. 
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

Note: Bold text in subsection (1) added March 14, 2006, with immediate effect: all provisions then amended create the 
Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Sec. 46A. Reserve for Defined Contribution Plan. 

(1) 
The reserve for defined contribution plan is the account to which member contributions and 
contributions by or on behalf of participating municipalities and participating courts for 
members covered by Benefit Program DC or the defined contribution component of Benefit 
Program H are credited, and to which investment income earned on the contributions is 
credited. The reserve for defined contribution plan is the account from which distributions of 
accumulated balances shall be made and from which transfers shall be made to the reserve for 
administrative expenses. The retirement system shall maintain 1 or more separate individual 
accounts for each person having an interest in this reserve. 
(2) 
A participating municipality or participating court shall cause the applicable member 
contributions to be deducted from the compensation of each member in its employ. 
Continuation of employment by the member shall constitute consent and agreement of the 
deduction of the applicable member contributions. Payment of compensation less the deduction 
shall be a complete discharge of all claims for compensation for service rendered by the 
member to the participating municipality or participating court. 
(3) 
A participating municipality or participating court shall certify to the retirement system the 
amount of compensation paid a member employed by the participating municipality or 
participating court. A participating municipality or participating court shall pay to the 
retirement system the aggregate amount of member contributions collected. Remittance of 
member contributions shall be made under procedures and schedules established by the 
Retirement Board. The retirement system may assess an interest charge and a penalty charge on 
any payment not made within 15 days after its due date. 
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996. 

Note: Bold text in subsection (1) added March 14, 2006, with immediate effect: all provisions then amended create the 
Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

[Sec. 46B. Transfers of Excess Assets to Reserve for Defined Contribution Plan.] 

* * * 

Note 1: Section 46B conditionally adopted, subject to IRS approval, by Board action of November 10, 1999. 
Note 2: Section 46B repealed by Board action of March 12, 2003. 

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Sec. 47. Reserve for Employer Contributions and Benefit Payments; Subaccounts. 

(1) The reserve for employer contributions and benefit payments is the consolidated account: 
(a) 
to which contributions by or on behalf of participating municipalities and participating 
courts shall be credited, other than contributions made on account of members covered 
by Benefit Program DC or the defined contribution component of Benefit Program 
H; 
(b) 
from which shall be paid all retirement allowances and residual refunds of accumulated 
contributions. 
(2) 
The retirement system shall maintain a separate subaccount for each participating municipality 
and participating court. 
(3) 
Effective with the system’s fiscal year ending December 31, 1998, the reserve for employer 
contributions and the reserve for retired benefit payments shall be consolidated into the 
Section 47 Reserve for Employer Contributions and Benefit Payments. All references in 
this Plan to the reserve for employer contributions shall be deemed to be references to the 
consolidated Section 47 Reserve. 
History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

Note: Language in subparagraph (1)(a) from former section 47, and (1)(b) from section 48(1); language in subsection 

(2) from former sections 47 and 48(1); language in subsection (3) added; and revised section heading by Board action of 
October 22, 1998, with immediate effect. 
Note 2: Bold text in subsection (1)(a) added March 14, 2006, with immediate effect: all provisions then amended create 
the Hybrid Plan, Benefit Program H, and include: sections 2A(1), 2C(7), 6(1), 7(1), 10(1), 11(4), 12(1)(d) and (2), 19B 
added, 20(5), 21(8), 22(8), 23(2)(a), 23A(5), 24(5), 26(2) and (5)(a) and (6), 27(4), 28(3), (3)(a) and (4), 30(1), 32(5), 39(1), 
44(2)(b), 44A(2)(b), 46(1), 46A(1), and 47(1)(a). 

Sec. 48. Reserve for Retired Benefit Payments, Subaccounts. 

Effective with the system’s fiscal year ending December 31, 1998, the reserve for retired benefit 
payments shall be consolidated into the Section 47 Reserve for Employer Contributions and Benefit 
Payments. All references in this Plan to the reserve for retired benefit payments shall be deemed to be 
references to the consolidated Section 47 Reserve. 

History: 1988 PA 500, Eff. Dec. 29, 1988, and Plan Document of 1996. 

Note: Language of former subsection 48 (1) incorporated into section 47(1)(b) and (2), and former section 48(2) deleted, 
by Board action of October 22, 1998, with immediate effect. 

Sec. 49. Reserve for Excess Casualty Experience; Transfers; Stop Loss Program. 

(1) 
The reserve for excess casualty experience is the account in which shall be accumulated 
contributions by participating municipalities and participating courts pursuant to an excess 
casualty experience stop loss program that the Retirement Board may implement from time to 
time. Excess casualty experience, determined in accordance with the stop loss program, shall 
be charged to the reserve for excess casualty experience by transfers to the affected participating 
municipality or participating court subaccounts in the reserve for retired benefit payments. This 
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section shall not be construed as mandating the establishment and continuation of a stop loss 
program. 

(2) 
The following transfers shall be made on September 30, [1989]: 
(a) 
The liabilities for disability and survivor retirement allowance being paid shall be 
transferred to the reserve for retired benefit payments account and charged to the 
participating municipalities' or participating courts' subaccounts from which the 
retirants have retired. 
(b) 
The assets of the reserve for excess casualty experience account shall be transferred to 
the participating municipalities' or participating courts' subaccounts in the reserve for 
retired benefit payments account in proportion to the liabilities transferred in 
subdivision (a). 
History: 1988 PA 500, Imd. Eff. Dec. 29, 1988, and Plan Document of 1996. 

Note: Bracketed year in subsection (2) added. 

Sec. 50. Reserve for Expenses and Undistributed Income; Transfer; Contingency Reserves. 

(1) 
The reserve for expenses and undistributed income is the consolidated account which shall be 
credited with all interest, dividends, and other income from the investment of retirement system 
assets, other than assets in the reserve for defined contribution plan; all gifts and bequests 
received by the retirement system; all unclaimed accumulated contributions and retirement 
allowances; and all other money received by the retirement system, the disposition of which is 
not specifically provided. There shall be transferred from the reserve for expenses and 
undistributed income the section 52 allocations to the reserve for employer contributions and 
benefit payments, including all amounts required to credit interest to the reserve for employee 
contributions. If the Retirement Board determines the balance in the reserve for expenses and 
undistributed income is more than sufficient to cover current charges to the reserve, all of any 
part of the excess may be used to provide contingency reserves or to meet special requirements 
of the other reserve accounts of the retirement system. If the balance in the reserve for 
expenses and undistributed income is insufficient to meet the current charges to the account, 
the amount of the insufficiency shall be transferred from the reserve for employer contributions 
and benefit payments. 

(2) 
There shall be paid from the reserve the expenses for the administration of the retirement 
system. 
(3) 
Effective with the system’s fiscal year ending December 31, 1998, the reserve for 
undistributed investment income and the reserve for administrative expenses account 
shall be consolidated into the Section 50 Reserve for Expenses and Undistributed Income. 
All references in this Plan to the reserve for undistributed investment income shall be 
deemed to be references to the consolidated Section 50 Reserve. 
History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 

Note: Language in subsection (1) from former section 50, as revised; language in (2) from former section 51, as 
revised; language in (3) added; and revised section heading by Board action of October 22, 1998, with immediate effect. 

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Sec. 51. Expenses for Administration of Retirement System; Payment. 

Effective with the system’s fiscal year ending December 31, 1998, the reserve for administrative 
expenses account shall be consolidated into the Section 50 Reserve for Expenses and Undistributed 
Income. All references in this Plan to the reserve for administrative expenses account shall be deemed to 
be references to the consolidated Section 50 Reserve. 

History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 

Note: Language from former section 51 incorporated into section 50(1)(b) as revised, by Board action of October 22, 
1998, with immediate effect. 

Sec. 52. Allocation of Undistributed Investment Income. 

The retirement system shall at least annually allocate all or a portion of undistributed investment income 
to the reserve for employer contributions and benefit payments, including all amounts required to credit 
interest to the individual balances in the reserve for employee contributions, and on the aggregate balance in the 
reserve for excess casualty experience. The amounts allocated shall be charged to the reserve for expenses and 
undistributed investment income. The allocation rates shall be determined by the Retirement Board. Allocation 
rates may vary by reserve account but shall be uniformly applied to each subaccount within a reserve account. 
Allocations to the reserve for employer contributions and benefit payments shall apply only to subaccounts of 
participating municipalities and participating courts on the date the allocation is adopted by the Retirement 
Board. Before accumulated contributions are paid under section 35, the retirement system may allocate the 
portion of investment earnings attributable to the accumulated contributions for the number of complete months 
between the date that investment earnings were last allocated under this section and the date the accumulated 
contributions are paid. 

History: 1992 PA 63, Eff. May 22, 1992, and Plan Document of 1996. 

Note: Bold text added by Board action of October 22, 1998, with immediate effect, to conform to revisions in sections 
47, 48, 50 and 51. 

End of Article VI. 

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ARTICLE VII. MISCELLANEOUS. 

Sec. 53. Rights Neither Subject to Process of Law Nor Assignable; Exceptions; Limitation; Right of 
Setoff; Transfers of Money and Assets to Another Retirement System. 

(1) 
The right of an individual to a retirement allowance, to the return of accumulated contributions, 
the retirement allowance itself, any other right accrued or accruing to an individual under this 
Plan, and any money belonging to the retirement system is not subject to execution, 
garnishment, attachment, the operation of bankruptcy or insolvency law, or any other process of 
law whatsoever and is unassignable, except as is otherwise specifically provided in this Plan. 
(2) 
The right of an individual to a retirement allowance, to the return of accumulated contributions, 
the retirement allowance itself, or any other benefit under this Plan is subject to award by a 
court pursuant to section 18 of chapter 84 of the Revised Statutes of 1846, being section 552.18 
of the Michigan Compiled Laws, and to any other order of a court pertaining to alimony or child 
support. The right of an individual to a retirement allowance, to the return of accumulated 
contributions, the retirement allowance itself, or any other benefit under this Plan is subject to 
an eligible domestic relations order under the Eligible Domestic Relations Order Act. However, 
this subsection does not permit or require a benefit to be paid or to be provided that is not 
otherwise available under the terms of this Plan. 
(3) 
If an award or order described in subsection (2) requires the retirement system to withhold 
payment of a pension, deferred pension, accumulated contributions, or other benefit from the 
person to whom it is due or requires the retirement system to make payment or requires the 
person to request that the retirement system make payment of a pension, deferred pension, 
accumulated contributions, or other benefit, for the purpose of meeting the person's obligations 
to a spouse, former spouse or child, as provided in subsection (2), the withholding or payment 
provisions of the award or order shall be effective only against such amounts as they become 
payable to the person receiving a retirement allowance unless otherwise provided in an eligible 
domestic relations order under the Eligible Domestic Relations Order Act. The limitations 
contained in this subsection do not apply to the accumulated contributions of a person who 
terminates employment before acquiring a vested member status. 
(4) 
The retirement system shall have the right of setoff to recover overpayments made by the 
retirement system and to satisfy any claim arising from embezzlement or fraud by a member, 
retirant, or beneficiary. A transfer of money and assets to another retirement system authorized 
by an affirmative vote by a majority of the members on the municipality's governing body is not 
a violation of this section. 
History: 1991 PA 50, Eff. June 27, 1991, and Plan Document of 1996. 

Sec. 54. Correction of Errors in Records; Recovery of Overpayments; Making up Underpayments. 

The retirement system shall correct errors in the records of the retirement system. The retirement 
system shall seek to recover any overpayments, and shall make up any underpayments, which have been made. 
The recovery of overpayments may be accomplished by reducing the amount of future payments so that the 
actuarial present value of actual payments to the recipient is equal to the actuarial present value of the payments 
to which the recipient was correctly entitled. 

History: 1984 PA 427, Eff. Jan. 2, 1985, and Plan Document of 1996. 

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Sec. 55. Intent; Retirement System as Qualified Pension Plan and Trust as Exempt Organization; 
Administration; Employer-financed Benefit Limitations; Annual Adjustment; Use and Investment of 
Assets; Return of Post-Tax Member Contributions; Beginning Date of Distributions; Termination of 
Participation in Retirement System; Election to Rollover to Retirement Plan; Interest Rate; Compliance 
with Section 415 of Internal Revenue Code and Regulations. 

(1) 
This section is enacted pursuant to federal law that imposes certain administrative requirements 
and benefit limitations for qualified governmental plans. The Retirement Board intends that the 
retirement system be a qualified pension plan under section 401 of the Internal Revenue Code 
and that the trust be an exempt organization under section 501 of the Internal Revenue Code. 
The Retirement Board shall administer the retirement system to fulfill this intent. 
(2) 
Notwithstanding any other provision of this Plan, the retirement system shall be administered in 
compliance with the provisions of section 415 of the Internal Revenue Code and revenue 
service regulations under that section that are applicable to governmental plans. If there is a 
conflict between this section and another section of this Plan, this section prevails. 
(3) 
The annual benefit otherwise payable to a member at any time shall not exceed the 
maximum permissible amount under section 415(b) of the Internal Revenue Code. Except 
as otherwise provided in this section, benefits provided by the retirement system shall not 
exceed the dollar limit in effect under Section 415(b)(1)(A) of the Internal Revenue Code. This 
limitation is subject to the following conditions: 
(a) 
The dollar limit must be reduced where a member has fewer than ten (10) years of 
participation in the Plan, when retirement benefits under the Plan commence. This 
adjustment is made by multiplying the dollar limit by a fraction: (i) the numerator 
of which is the number of years (or part thereof) of participation in the Plan as of, and 
including, the current limitation year, and (ii) the denominator of which is 10. If the 
$10,000 minimum benefit under section 415(b)(4) is applicable, that dollar amount 
must be reduced where a member has fewer than ten (10) years of service with the 
employer at the time the member begins to receive retirement benefits under the 
Plan. This adjustment is made by multiplying the $10,000 minimum benefit by a 
fraction: (i) the numerator of which is the number of years (or part thereof) of 
service with the employer as of, and including the current limitation year, and (ii) 
the denominator of which is 10. 
(b) 
If benefits in any form other than a straight life annuity is selected (other than 
Form of Payment II, IIA, or III with a spouse as named survivor beneficiary) or if 
the benefit as determined includes after-tax employee contributions or rollovers, 
then the benefit to be tested under this Section must be adjusted to an actuarial 
equivalent straight life annuity, beginning at the same age. For limitation years 
beginning on or after January 1, 1995, the actuarially equivalent straight life 
annuity for purposes of applying the limitations under section 415(b) to benefits 
that are not subject to section 417(e)(3) is equal to the greater of (i) the equivalent 
annual benefit computed using the interest rate and mortality table, or tabular 
factor, specified in the Plan for actuarial equivalence for the particular form of 
benefit payable, or (ii) the equivalent annual benefit computed using a 5 percent 
interest rate assumptions and the applicable mortality table. The applicable 
mortality table is the mortality table described in Rev. Rul. 95-6. The annual 
benefit does not include any benefits attributable to employee contributions or 
rollover contributions, or assets transferred from a qualified plan that was not 
maintained by the employer. 
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(c) 
For limitation years beginning on or after January 1, 1995, if the benefit of a 
member begins before age 62, the defined benefit dollar limitation applicable to the 
member at such earlier age is an annual benefit payable in the form of a straight life 
annuity beginning at the earlier age that is the actuarial equivalent of the defined benefit 
dollar limitation applicable to the member at age 62 (adjusted under (a) above, if 
required). The defined benefit dollar limitation applicable at an age prior to age 62 is 
determined as the lesser of (i) the equivalent amount computed using the interest 
rate and mortality table (or tabular factor) used in the Plan for actuarial 
equivalence for early retirement benefits, or (ii) the actuarial equivalent (at such age) 
of the defined benefit dollar limitation computed the actuarial equivalent (at such age) 
of the defined benefit dollar limitation computed using a 5 percent interest rate and the 
applicable mortality table. Any decrease in the defined benefit dollar limitation 
determined in accordance with this paragraph (c) shall not reflect a mortality decrement 
if benefits are not forfeited upon the death of the member. If any benefits are forfeited 
upon death, the full mortality decrement is taken into account. 
(d) 
If the benefit of a member begins after the member attains age 65, the defined benefit 
dollar limitation applicable to the member at the later age is the annual benefit payable 
in the form of a straight life annuity beginning at the later age that is actuarially 
equivalent to the defined benefit dollar limitation applicable to the member at age 65 
(adjusted under (a) above, if required). The actuarial equivalent of the defined benefit 
dollar limitation applicable at an age after age 65 is determined as the lesser of (i) the 
equivalent amount computed using the interest rate and mortality table (or 
tabular factor) used in the Plan for actuarial equivalence for late retirement 
benefits, or (ii) the actuarial equivalent (at such age) of the defined benefit dollar 
limitation computed using a 5 percent interest rate assumption and the applicable 
mortality table. 
(4) 
Annual additions to any member’s account shall not exceed the limit specified in section 
415(c). For years beginning on or before December 31, 2001 the limit is the lesser of 25% 
of the member’s compensation or $30,000, as adjusted for cost-of-living increases under 
subsection (5). For years beginning after December 31, 2001, the limit is the lesser of 
100% of the member’s compensation or $40,000, as adjusted for cost-of-living increases 
under subsection (5). This limit subject to the following definitions and conditions: 
(a) 
For limitation years beginning after December 31, 1997, compensation paid or 
made available during such limitation year shall include any elective deferral (as 
defined in Code section 401(g)(3), and any amount which is contributed or 
deferred by the employer at the election of the member and which is not includible 
in gross income of the employee by reason of section 125 or 457. For Plan and 
limitation years beginning on and after January 1, 2001, compensation paid or 
made available during such plan and limitation years shall include elective 
amounts that are not includable in the gross income of the member by reason of 
section 132(f)(4) of the Internal Revenue Code. 
(b) 
All defined contribution plans of an employer shall be treated as one defined 
contribution plan for the purposes of the limitations under section 415(c). 
(c) 
“Annual Additions” are defined by Treasury Regulation Section 1.415-6(b). For 
defined benefit plan purposes, annual additions generally include after-tax 
mandatory and voluntary employee contributions. Excluded from the definition 
of annual additions are picked-up contributions to the defined benefit plan, 
repayments of refunded contributions, rollovers, and trustee-to-trustee transfers. 
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(5) 
Section 415(d) of the Internal Revenue Code requires the Commissioner of Internal Revenue to 
adjust the dollar limit described in subsections (3) and (4) to reflect cost of living increases. 
These subsections shall be administered using the limitations applicable to each calendar year 
as adjusted by the Commissioner of Internal Revenue under section 415(d) of the Internal 
Revenue Code. The retirement system shall adjust the benefits subject to the limitation each 
year to conform with the adjusted limitation. 
(6) 
The assets of the retirement system shall be held and invested for the sole purpose of meeting 
the legitimate obligations of the retirement system and shall not be used for any other purpose. 
The assets shall not be used for or diverted to a purpose other than for the exclusive benefit of 
the members, vested former members, retirants, and beneficiaries before satisfaction of all 
retirement system liabilities. 
(7) 
The retirement system shall return post-tax member contributions made by a member and 
received by the retirement system to a member upon retirement, pursuant to internal revenue 
service regulations and approved internal revenue service exclusion ratio tables. For Benefit 
Program DROP+ authorized under section 10(6), the interest rate and mortality table 
used for calculating the portion of the lump sum attributable to a member's post-tax 
member contributions shall be as provided under subsection (11) of this section 55. 
(8) 
The required beginning date for retirement allowances and other distributions shall not be later 
than the later of (i) April 1 of the calendar year following the calendar year in which the 
employee attains age 70-l/2 or (ii) April 1 of the calendar year following the calendar year in 
which the employee retires. 
(9) 
If a participating municipality or participating court discontinues participation in the retirement 
system, or if the retirement system is terminated, the interest of the members, vested former 
members, retirants, and beneficiaries in the plan is nonforfeitable to the extent funded as 
described in section 411(d)(3) of the Internal Revenue Code and the related Internal Revenue 
Service regulations applicable to governmental plans. 
(10) 
Notwithstanding any other provision of this Plan to the contrary that would limit a distributee’s 
election under this Plan, a distributee may elect, at the time and in the manner prescribed by the 
Retirement Board, to have any portion of an eligible rollover distribution paid directly to an 
eligible retirement plan specified by the distributee in a direct rollover. This subsection applies 
to distributions made on or after January 1, 1993. 
(11) 
For purposes of determining actuarial equivalent retirement allowances under section 23(2)(b) 
through (e), the actuarially assumed interest rate shall be 8% as of December 31, 2001, with 
utilization of the 1994 Group Annuity Mortality Table. 
(12) 
Any distribution made under the Plan shall be made in accordance with section 401(a)(9) of the 
Code and the regulations issued thereunder. 
(13) 
Notwithstanding any other provision of this Plan, the compensation of a member of the 
retirement system shall be taken into account for any year under the retirement system only to 
the extent that it does not exceed the compensation limit established in section 401(a)(17) of the 
Internal Revenue Code, as adjusted for cost-of-living increases in accordance with section 
401(a)(17)(B) of the Internal Revenue Code. For purposes of determining benefit accruals in a 
plan year beginning after December 31, 2001, compensation for any prior determination period 
shall be limited to $200,000. This subsection applies only to any person who first becomes a 
member of the retirement system on or after October 1, 1996 (“noneligible participants”), and 
shall be effective for noneligible participants as of October 1, 1996. 
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(14) 
Notwithstanding any other provision of this Plan, contributions, benefits, and service credit with 
respect to qualified military service will be provided under the retirement system in accordance 
with section 414(u) of the Internal Revenue Code. This subsection applies to all qualified 
military service on or after December 12, 1994. 
History: 1995 PA 191, Eff. Nov. 7, 1995, and Plan Document of 1996. 

Note 1: On July 8, 1997, the Internal Revenue Service issued its Letter of Favorable Determination that the Plan 
Document of 1996 conforms to the provisions of the Internal Revenue Code applicable to governmental plans. 

Note 2: Subsection (9) originally subsection (10) as amended by Board action of February 13, 2002, with immediate 
effect. See also Plan section 5, note 3. 

Note 3: Revisions to subsections (2)—(5), (10), (12) and (13); renumbering of former (4)—(12); and addition of 
subsections (14) and (15), to comply with federal law changes (the Economic Growth and Tax Relief Reconciliation Act 
of 2001); by Board action of May 8, 2002, with retroactive effective date of January 1, 2002. 

Note 4: The Board took the following action on August 14, 2002, to be effective January 1, 2002 (unless a different 
effective date is otherwise specified): combined in subsection (2) language formerly appearing in subsections (2)—(4), 
renumbered former subsection (5) as (3), and restated or added language in (2) and (3), pursuant to the provisions of 
the Economic Growth and Tax Relief Reconciliation Act of 2001; renumbered subsections (6) to (13) as subsections (4) 
to (11); and renumbered former subsection (14) as subsection (12), pursuant to the provisions of Omnibus Budget 
Reconciliation Act of 1993; renumbered former subsection (15) as subsection (13). 

Note 5: Pursuant to MERS’ 2002 IRS Favorable Determination Request, on March 10, 2004, the Board amended 
section 55, with immediate effect, as follows (new language in bold): subsection (2) contains language formerly in (11); 
in (3), formerly (2), language struck and language added throughout; (4) new language; (5), formerly (3) with revision 
noted; former subsections (4)—(10) renumbered as (6)—(12), with revisions in (8) and (11); and former (12)—(13) 
renumbered as (13)—(14). 

Note 6: Second sentence in subsection (7) added, pursuant to June 15, 2005 IRS Letter of Favorable Determination on 
MERS Plan Document (see note 5): by Board action of September 20, 2005, with immediate effect. 

Sec. 55A. Qualified Excess Benefit Arrangement. 

(1) 
This section is enacted pursuant to section 415(m) of the Internal Revenue Code and 2002 PA 
100, the Michigan Public Employee Retirement Benefit Protection Act. 
(2) 
A qualified excess benefit arrangement (QEBA) is established. The arrangement shall be 
governed by a separate plan document and trust, executed by the Retirement Board. 
(3) 
The amount of any retirement allowance that would exceed the limitations imposed by section 
415 of the Internal Revenue Code, as set forth in section 55 of the Plan, shall be paid from the 
QEBA in accordance with necessary and appropriate procedures established by the Retirement 
Board for the administration of the QEBA. 
(4) 
The QEBA shall be a separate portion of the Plan. The QEBA is subject to the following 
requirements: 
(a) 
The QEBA shall be maintained solely for the purpose of providing to retirants and 
beneficiaries that part of the retirant's or beneficiary's retirement allowance otherwise 
payable under the terms of the Plan, but which exceed the limitations imposed by 
section 415 of the Internal Revenue Code, as set forth in section 55 of the Plan; and 
MERS Plan Doc: Revised as of May 13, 2009 
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(b) 
Retirants and beneficiaries do not have an election, directly or indirectly, to defer 
compensation to the QEBA. 
Note 1: 
Section 55A added by Board action of March 12, 2003, with immediate effect. 

Note 2. On December 15, 2003, the Internal Revenue Service issued its Private Letter Ruling approving the QEBA 
established by Section 55A. 

Sec. 56. Severability. 

This Plan shall be governed by the laws of the state of Michigan. Wherever necessary, pronouns of any 
gender shall be deemed synonymous, as shall singular and plural pronouns. The table of contents and the 
hearings of sections and paragraphs are included solely for convenience and shall not affect, or be used in 
connection with, the interpretation of this Plan. If any section or part of a section of this Plan is for any reason 
held to be invalid or unconstitutional, such holding shall not be construed as affecting the validity of the 
remaining sections of the Plan or the Plan in its entirety. 

History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996. 

Sec. 57. Repeal. 

This Plan Document shall repeal in its entirety, and replace, the MERS Plan as of August 15, 1996. 
Pursuant to 1996 PA 220, section 36(2)(a), MCL 38.1536(2)(a), the Municipal Employees' Retirement System 
Plan Document of 1996 contains retirement system provisions that do not differ materially from the defined 
benefit provisions that were in effect under 1984 PA 427, as amended, as of 11:59 p.m. on August 14, 1996 (the 
date preceding the certification date). This 1996 Plan Document establishes additional programs "including, but 
not limited to, defined benefit and defined contribution programs" as set forth in section 36 of 1996 PA 220. All 
resolutions and policies of the Retirement Board previously enacted which are inconsistent with the provisions 
of this 1996 Plan Document are hereby also repealed to the extent of such inconsistency. 

History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996. 

End of Article VII. 

MERS Plan Doc: Revised as of May 13, 2009 
7-6 

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ARTICLE VIII. ESTABLISHMENT OF 401(h) ACCOUNT FOR MERS PARTICIPATING 
EMPLOYERS. 

Sec. 60. Authorization and Establishment. 

The Board is authorized by MCL 38.1536(2)(a) to establish additional programs within MERS, 
including ancillary benefits, health and welfare benefits, and other post-employment benefits. A 401(h) 
Account shall be established for each MERS Participating Employer that adopts a 401(h) Account Uniform 
Resolution and a 401(h) Account Participation Agreement specifying optional terms of the 401(h) Account. 
Each 401(h) Account shall be a separate account within the Trust Fund and shall be established pursuant to 
Internal Revenue Code Section 401(h). The assets held in each 401(h) Account shall be accounted for 
separately from all assets of the Trust Fund not held in any 401(h) Account. However, 401(h) Account assets 
may be commingled with other assets of the Trust Fund for investment purposes. Investment earnings and 
expenses will be allocated on a reasonable basis. The purpose of each such 401(h) Account shall be to provide a 
funding structure for the payment of certain Medical Care costs as provided in the applicable 401(h) Account 
Participation Agreement. 

Note: Section 60, Article VIII, added by Board action of November 10, 2004, with immediate effect. 

Sec. 61. Defined Terms. 

(1) 
“Covered Group” means any class or group of employees of a Participating Employer so 
designated by the Participating Employer in the Participation Agreement. 
(2) 
“Eligible Employee” means any employee of a Participating Employer so designated by the 
Participating Employer in the Participation Agreement. 
(3) 
“Medical Care” has the meaning set forth in Section 213(d)(1) of the Internal Revenue Code. 
(4) 
“Participant(s)” means any Eligible Employee of any Participating Employer, on whose behalf 
rights to benefits from the 401(h) Account become payable upon his or her receipt of a 
retirement benefit from the Participating Employer. 
(5) 
“Participating Employer” means any participating court or participating municipality which 
chooses to establish a 401(h) Account pursuant to this Article VIII. 
Note: Section 61, Article VIII, added by Board action of November 10, 2004, with immediate effect. 

Sec. 62. Section 401(h) Account Participation. 

Any Participating Employer may choose to establish a 401(h) Account pursuant to this Article. The 
Participating Employer shall adopt the 401(h) Account Uniform Resolution and 401(h) Account Participation 
Agreement and provide the same to MERS. A 401(h) Account shall not be established for any Participating 
Employer until MERS receives such duly adopted and executed 401(h) Account Uniform Resolution and 401(h) 
Account Participation Agreement. 

Note: Section 62, Article VIII, added by Board action of November 10, 2004, with immediate effect. 

MERS Plan Doc: Revised as of May 13, 2009 
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Sec. 63. Mandatory Terms. 

Any 401(h) Account established under this section must comply with the following conditions: 

(1) 
Trust Status. 
(a) 
All assets held in the 401(h) Account, including all contributions received pursuant to 
the Plan Document and the Participation Agreement, all property and rights acquired or 
purchased with such amounts and all income attributable to such amounts, property or 
rights shall be held in trust for the exclusive benefit of Participants in the Participating 
Employer’s 401(h) Account. 
(b) 
To the extent required by Code Section 401(h), all contributions received pursuant to 
the Plan Document and the Participation Agreement, all property and rights acquired or 
purchased with such amounts and all income attributable to such amounts, property or 
rights held as part of the 401(h) Account shall be held, managed, invested and 
distributed as part of the Trust Fund in accordance with the provisions of the Plan 
Document and the Participation Agreement. 
(2) 
Discrimination. The 401(h) Account does not permit any condition for eligibility or benefits 
that would discriminate in favor of any class of Participants to the extent such discrimination is 
prohibited by applicable law. 
(3) 
Non-Diversion and Reversion Rules. 
(a) 
At no time prior to the satisfaction of all liabilities under the 401(h) Account or 
termination of the 401(h) Account shall any assets in the 401(h) Account be used for, or 
diverted to, any purpose other than the providing of the benefits under this Article VIII 
and the payment of administrative expenses. Assets in the 401(h) Account may not be 
used for retirement or disability benefits or any other purpose for which other assets 
held in the Trust Fund are used. 
(b) 
As provided by Code Section 401(h)(5), upon the satisfaction of all liabilities under law 
and the 401(h) Account, any remaining amounts shall returned to the Participating 
Employer. 
(4) 
Amendment for Qualification of Plan. It is the intent of the Board that the 401(h) Account shall 
be and remain a Code Section 401(h) account. The Plan Administrator shall promptly submit 
the Plan Document and the Participation Agreement to the Internal Revenue Service for 
approval under the Code, and all expenses incident thereto shall be borne by the 401(h) 
Account. The Board may make any modifications, alterations, or amendments to the Plan 
Document, Participation Agreement or Plan operations necessary to obtain and retain approval 
of the Secretary of the Treasury or the Secretary's delegate of the 401(h) Account as qualified 
under the provisions of the Code or other federal legislation, as now in effect or hereafter 
enacted, and the regulations issued thereunder. Any modification, alteration, or amendment of 
the Plan Document or the Participation Agreement, made in accordance with this Section, may 
be made retroactively, if necessary or appropriate. A certified copy of the resolution of the 
Board making such amendment shall be delivered to the Plan Administrator, and the Plan 
Document or Participation Agreement shall be amended in the manner and effective as of the 
date set forth in such resolution. The Board and the Participating Employer, Eligible 
Employees, Participants, their Spouses and Dependents, and all others having any interest under 
the 401(h) Account shall be bound thereby. 
MERS Plan Doc: Revised as of May 13, 2009 
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(5) 
Coverage. Benefits from the 401(h) Account may only be paid to a Participant, a Participant’s 
Spouse (an individual to whom the Participant is married as determined under Michigan law) 
and Dependents (as defined in Code Section 152) for Medical Care specified in the applicable 
Participation Agreement. A Participant (and his or her Spouse and Dependents) has no rights to 
benefits from the 401(h) Account until he or she becomes a Retired Participant. 
(6) 
Benefits Payable from the 401(h) Account. 
(a) 
Benefits payable from a 401(h) Account shall include only payments or reimbursements 
for Medical Care (as defined in Code Section 213(d)(1). Benefits may be further 
limited by the terms of the Participation Agreement of a Participating Employer, which 
shall specify the specific benefits to be paid from a 401(h) Account. 
(b) 
The Board shall administer the DB Component, if any, of each 401(h) Account on an 
actuarially sound basis. 
(c) 
Medical Care payments shall only be paid pursuant to an application. 
(d) 
No refunds of contributions shall be made. All contributions remain in the 401(h) 
Account until used for Medical Care payments. 
(e) 
Reimbursements may not be made for any expense for which the Retired Participant or 
his or her Spouse or Dependents receive, or are eligible to receive, payment or 
reimbursement from another source. 
(f) 
In order to receive benefits from the 401(h) Account, the Retired Participant must agree 
to provide appropriate documentation of the expenditure, subject to the following 
conditions: 
(i) 
In the case of premiums for insurance provided by the Retired Participant’s 
employer, a certification of coverage by the employer is required before 
payments may be made directly to the insurance provider. 
(ii) 
For Medicare B premiums, the Retired Participant must provide evidence of 
coverage in order for direct payments to be made 
(iii) 
Other Medical Care reimbursements shall be made to the Retired Participant 
only upon receipt of verified claims or pursuant to the certification procedure. 
(7) 
Protection of Benefits. 
(a) 
A Retired Participant may assign the payment of benefits from the 401(h) Account in 
order to pay for Medical Care insurance if otherwise permitted by the applicable 
Participation Agreement. With this exception, no Eligible Employee or his or her 
Spouse or Dependent, or designee, may commute, sell, assign, transfer or otherwise 
convey the right to receive any payment under the 401(h) Account. 
(b) 
The rights of Eligible Employees or their Spouses or Dependents under this Article 
shall not be subject to the rights of their creditors, and shall be exempt from execution, 
attachment, prior assignment or any other judicial relief or order for the benefit of 
creditors or other third person, including a domestic relations order. 
(8) 
Subordination of Contributions. 
MERS Plan Doc: Revised as of May 13, 2009 
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(a) 
Contributions to the 401(h) Account must be subordinate to the contributions to the 
System for retirement benefits. At no time shall contributions to the 401(h) Account be 
in excess of twenty-five percent (25%) of the total aggregate actual contributions made 
to the System Trust Fund (not including contributions to fund past service credits). The 
Plan Administrator shall annually determine whether the twenty-five percent (25%) test 
has been met. If at any time the 401(h) Account contributions would exceed the 
twenty-five percent (25%) test, the excess amount of contributions shall be directed first 
to the Pension Assets. 
(b) 
Forfeitures shall not be allocated to individual accounts under any Participating 
Employer’s 401(h) Account, but shall be used for account expenses. 
(9) 
Treatment of Contributions for 415(c) Purposes. Contributions shall be treated as an annual 
addition to a defined contribution plan for purposes of Code Section 415(c) in accordance with 
Code Section 415(l). 
Note: Section 63, Article VIII, added by Board action of November 10, 2004, with immediate effect. 

Sec. 64. Optional Terms. 

(1) 
DB Component. A Participating Employer may elect a defined benefit component. A 
Participating Employer which so elects shall be subject to the following provisions: 
(a) 
For each Participating Employer which so elects, the Board will establish in the 401(h) 
Account a sub-account to be known as the DB Component. The DB Component shall 
be credited with the contributions made by the Participating Employer, contributions 
made by Eligible Employees (which shall be deposited in individual accounts within the 
DB Component), and all investments, receipts, disbursements, and other transactions 
thereunder; which amounts shall be used solely for the payment of benefits, expenses 
and other charges properly allocable to the DB Component and shall not be used for the 
payment of benefits, expenses or other charges properly allocable to any other purpose. 
(b) 
As authorized by law, and if so elected in the Participation Agreement, the Board shall 
pay monthly to each Retired Participant who is eligible for medical insurance coverage 
under part B of "The Social Security Amendments of 1965," 79 Stat. 301, 42 U.S.C.A. 
1395j, as amended, an amount established by Board rule that does not exceed the basic 
premium for such coverage. 
(c) 
As authorized by law, and if so elected in the Participation Agreement, the Board shall 
pay monthly to each Retired Participant an amount determined by the Participation 
Agreement for Medical Care as defined by the Participation Agreement. 
(2) 
DC Component. A Participating Employer may elect a defined contribution component. A 
Participating Employer which so elects shall be subject to the following provisions. 
(a) 
For each Participating Employer which so elects, the Board will establish in the 401(h) 
Account a sub-account to be known as the DC Component. 
(b) 
Within the DC Component, separate accounts shall be maintained reflecting the 
contributions made by each Participant and all investments, receipts, disbursements, 
and other transactions thereunder; which amounts shall be used solely for the payment 
MERS Plan Doc: Revised as of May 13, 2009 
8-4 

.
of benefits, expenses and other charges properly allocable to each Participant and shall 
not be used for the payment of benefits, expenses or other charges properly allocable to 
any other purpose. 

(c) 
A Retired Participant’s DC Component account balance may be used for the purpose of 
funding any Medical Care costs specified in the Participation Agreement for a Retired 
Participant or his or her Spouse or Dependents. 
(d) 
The Board, in its sole discretion, may by Rule permit Participants participating in the 
DC Component to direct the investment of their DC Component Account among 
Investment Funds selected by the Board. The Board may by Rule establish one or more 
default options for a Participant that does not have a valid investment direction on file 
with the System. The Board may establish the default option based upon various 
factors, including but not limited to, market value, stability and rate of return. Any 
Rule adopted under this Section may provide for the setting and changing of 
administrative and investment fees. 
(3) 
Employee Contributions: DB Component or DC Component. 
(a) 
The Participation Agreement may require mandatory employee contributions and/or 
may establish a procedure for a one-time elective employee contribution. 
(b) 
Employee Contributions shall be made by payroll deduction from the Salary of the 
Participants, unless the Participant’s Employer elects to pay all or a portion of his or her 
contribution 
(c) 
The Participating Employer may elect to pick up all of the Participant's contributions in 
the Participation Agreement. The contributions so picked up shall be treated as 
Employer contributions pursuant to Internal Revenue Code Section 414(h)(2). The 
Employer shall pay these picked-up contributions directly to the System, instead of 
paying such amounts to the Participants, and such contributions shall be paid from the 
same funds that are used in paying salaries to the Participants. Such contributions, 
although designated as employee contributions, shall be paid by the Employer in lieu of 
contributions by Participants. Participants may not elect to receive such contributions 
directly instead of having them paid by the Participating Employer to the 401(h) 
Account. Employee contributions so picked up shall be treated for all purposes of the 
Plan Document and Michigan law, other than federal tax law, in the same manner as 
employee contributions made before the date picked up. 
(4) 
The Participation Agreement may provide for Employer Contributions. 
(5) 
A Participating Employer may identify Covered Groups in the Participation Agreement. 
(6) 
A Participating Employer may specify the types of Medical Care covered in the Participation 
Agreement. However, Medical Care must be payments or reimbursement for health benefits as 
defined by Code Section 213 and excludable from income under Code Sections 105 and 106, as 
amended from time to time. Medical Care excludes health benefits provided by Social Security, 
Medicaid, Medicare, or any other medical and health insurance contracts covering the Retired 
Participants, their Spouse and Dependents, and the reimbursements may not be made for items 
payable by any other insurance contract. 
The permissible types of Medical Care are: 

MERS Plan Doc: Revised as of May 13, 2009 
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(a) 
To any Retired Participant who is eligible for medical insurance coverage under part B 
of “The Social Security Amendments of 1965,” 79 Stat. 301, 42 U.S.C.A. 1395j, as 
amended. 
(b) 
Premiums paid for any group health insurance plan provided by the Participating 
Employer. A “health insurance plan” means an individual or group accident or health 
insurance policy, but does not include dental or vision coverage. The term includes, but 
is not limited to, a hospital policy or certificate, a medical policy or certificate, a service 
policy or certificate, a hospital or medical service plan contract, a health maintenance 
organization, and a preferred provider organization. 
(c) 
Premiums paid for a health insurance plan for single, two-party, or family coverage for 
Medical Care for a Retired Participant. A “health insurance plan” means an individual 
or group accident or health insurance policy, and may include dental or vision coverage. 
The term includes, but is not limited to, a hospital policy or certificate, a medical policy 
or certificate, a service policy or certificate, a hospital or medical service plan contract, 
a health maintenance organization, and a preferred provider organization. 
(d) 
Payment or reimbursement of amounts (i) for the diagnosis, cure, mitigation, treatment, 
or prevention of disease, or for the purpose of affecting any structure or function of the 
body, or (ii) for transportation primarily for and essential to medical care. Medical Care 
must be payments or reimbursement for health benefits as defined by Code Section 213 
and excludable from income under Code Section 105 and 106, as amended from time to 
time. Medical Care excludes health benefits provided by Social Security, Medicaid, 
Medicare, or any other medical and health insurance contracts covering the Retired 
Participant, his Spouse and Dependents, and the reimbursements may not be made for 
any item covered by any other insurance contract. 
Note: Section 64, Article VIII, added by Board action of November 10, 2004, with immediate effect. 

End of Article VIII. 

MERS Plan Doc: Revised as of May 13, 2009 
8-6 

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APPENDIX TO PLAN DOCUMENT 

Page 

• 
Procedure for Review of Formal Requests for Changes to MERS 
Plan Document ................................................................................................................. A-1 

• 
Former Section 38.1506 .................................................................................................... B-1 


• 
Former Section 38.1509 .................................................................................................... B-2 


• 
Former Section 19A .......................................................................................................... B-3 


MERS Plan Doc: Revised as of May 13, 2009 

.
REVISED PROCEDURE FOR REVIEW OF FORMAL 
REQUESTS FOR CHANGES TO MERS PLAN DOCUMENT 


Approved by the Retirement Board March 8, 2005. 
(Adopted January 22, 1997, revised September 21, 2004) 

The purpose of this policy is to ensure a consistent pattern of handling the review of proposed 
changes to the Plan Document. 

With the enactment of PA 220 of 1996, the MERS Board now has the exclusive authority to determine 
the provisions of the retirement system affecting the following: benefit eligibility, benefit programs, 
contribution amounts, and the election of municipalities, judicial circuit courts, judicial district courts and 
judicial probate courts to be governed by the provisions of the retirement system. Since it will be necessary to 
review and make changes to the Plan Document, the Board has established the following guidelines for 
reviewing the Plan Document on a regular basis for such things as: legislative changes resulting in a need to 
comply with federal and/or state law, requests received from participating municipalities or courts, or a change 
or addition to Board policy. 

• 
Staff will review and make recommendations to the Board on any changes 
that need to be made to comply with legislative changes in Federal and 
State law. 
• 
Staff will review and the Chief Executive Officer will make 
recommendations to the Board on all requests received in the office from 
participating municipalities or courts. 
• 
Upon receipt of a request, staff will notify the requestor by letter of the 
date the request will be considered by the Board at its next scheduled 
meeting. The requestor will be advised that they have the opportunity to 
address the Board regarding their request. 
• 
Following Board review, staff will notify the requestor of Board action. 
• 
Following Board approval for Plan Document changes, notification will be 
sent to all member employers within the same month. For changes that the 
Board determines will likely have a substantial effect on the membership, 
a comment period of not less than ninety (90) days will be observed before 
implementation will take place. [Added March 8, 2005.] 
• 
Requests received and approved are to be normally implemented on the 
following January 1, unless there is need for more immediate action. 
MERS Plan Doc: Revised as of May 13, 2009 Appendix A-1 
3-8-05 changepro 

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LANGUAGE OF FORMER SECTION 38.1506 


Credit for certain qualifying service; conditions; crediting payment under subsection (1)(c). 

Sec. 6. (1) 
The retirement board shall credit a member for qualifying service in the employ of the United 
States government, a state, or a political subdivision of a state, if each of the following 
conditions is satisfied: 

(a) 
The governing body of the participating municipality that employs the member adopt a 
resolution, or the chief judge of the participating court that employs the member issues 
an administrative order, requesting the retirement board to credit the member with a 
specific period of qualifying service and files a certified copy of the resolution or 
administrative order with the retirement system within 10 days after adoption or 
issuance. 
(b) 
The qualifying governmental service was not rendered prior to any break of 180 or 
more months in the member's employment by the United States government, a state, or 
a political subdivision of a state. 
(c) 
The member pays to the retirement system the amount the participating municipality or 
participating court may require of the member in consideration for the crediting of 
qualifying governmental service. The required payment shall not exceed the larger of 
the following amounts multiplied by the period of qualifying governmental service to 
be credited the member: 
(i) 
Five percent of the member's annual compensation at time of payment. 
(ii) 
The member's annual compensation at time of payment multiplied by the 
percent specified under the member contribution program applicable to the 
member. 
(2) 
For purposes of this section, service is qualifying if it is not and will not be recognized for the 
purpose of obtaining or increasing a benefit under another retirement system. A member may, 
qualify service by making an irrevocable forfeiture of all rights in and to the actual or potential 
benefit from the other retirement system. 
(3) 
Service in the armed forces of the United States is not qualifying service and shall not be 
credited to a member under this section. 
(4) 
The payment under subsection (1)(c) shall be credited to the member's individual account in the 
reserve for employee contributions. 
Comment: The language above was section 6 of the Municipal Employees Retirement Act of 1984. This section, 
repealed on August 15, 1996 by 1996 PA 220, enacting section 2, had been last amended by 1989 PA 51. For 
application of the language of former MCL 38.1506, see Section 6(4) of the Plan Document, and accompanying Notes 
1 and 2. 

MERS Plan Doc: Revised as of May 13, 2009 Appendix B-1 
former lang 

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LANGUAGE OF FORMER SECTION 38.1509 


Credited service for periods of continuous active duty lasting 30 or more days; conditions. 

Sec. 9. A member who enters or entered any armed service of the United States may acquire credited service for 
periods of continuous active duty lasting 30 or more days, subject to the following conditions: 

(a) 
The governing body of the member's participating municipality authorizes the 
acquisition of credited service under this section by an affirmative vote by a majority of 
its members or the chief judge of the member's participating court authorized the 
acquisition of credited service under this section by an administrative order. 
(b) 
The member has at least 10 years of credited service, not including any credited service 
acquired under this section and section 8 [former MCL 38.1508, now Plan Document 
Section 9]. 
(c) 
The member pays the retirement system 5% of the member's annual compensation 
multiplied by the period of credited service being claimed. Annual compensation, for 
the purpose of this condition, means the aggregate amount of compensation paid the 
member during the 4 most recent calendar quarters for each of which the member was 
credited 3/12 of a year of credited service. 
(d) 
Fractional months of armed service shall not be recognized for the purposes of this 
section. 
(e) 
Armed service credited a member under section 8 [now Plan Document Section 9] shall 
not be the basis of credited service under this section. 
(f) 
Armed service credited a member under this section shall not exceed either 5 years or 
the difference between 6 years and the armed service credited the member under section 
8 [now Plan Document Section 9]. 
(g) 
Credited service shall not be granted for periods of armed service that are or could be 
used for obtaining or increasing a benefit from another retirement system. 
Comment: The language above was section 9 of the Municipal Employees Retirement Act of 1984. This section, 
repealed on August 15, 1996 by 1996 PA 220, enacting section 2, had been last amended by 1988 PA 500. For 
application of the language of former MCL 38.1509, see section 6(4) of the Plan Document, and accompanying notes 
1 and 2. 

MERS Plan Doc: Revised as of May 13, 2009 Appendix B-2 
former lang 

.
LANGUAGE OF FORMER SECTION 19A 


Sec. 19A. Benefit Program DC; Adoption; Contribution; Distribution. 

(1) 
This section applies to a member covered by Benefit Program DC. Unless specifically restricted by this Plan or 
the Retirement Board, a participating municipality or participating court is authorized to offer any rights, benefits, 
or features authorized for defined contribution plans under the Internal Revenue Code of 1986, as amended. 
(2) 
In the resolution adopting Benefit Program DC, the member's participating municipality or participating court 
shall provide for the contribution of a percentage of the member's compensation to the retirement system. The 
participating municipality or participating court shall choose the percentage from the available contribution 
programs. The contribution programs available for selection are any percentage of compensation from 1% to the 
maximum percentage allowed by federal law, in increments of 0.1%. The participating municipality or 
participating court shall choose the same contribution rate for all members in the same benefit program coverage 
classification. The Retirement Board shall determine the timing and mechanism for the remittance of employer 
contributions. The Retirement Board may establish a program for making transfers from the reserve for employer 
contributions to the reserve for defined contribution plan for the purpose of meeting all or a part of the 
participating municipality's or participating court's contribution under this subsection. 
(3) 
A member may voluntarily contribute additional amounts to his or her individual account in the reserve for defined 
contribution plan to the extent allowed by federal law and subject to procedures established by the Retirement 
Board. A member may roll over qualified distributions from other qualified retirement plans into this retirement 
system, to the extent allowed by federal law. A member is immediately 100% vested in the member's accumulated 
balance. 
(4) 
The Retirement Board may contract with private investment managers to invest the assets in the reserve for 
defined contribution plan. A member, vested former member, and beneficiary may direct the investment of the 
individual's accumulated balance to 1 or more of the available categories of investment provided by the investment 
managers. At least 3 categories of investment shall be made available to members, vested former members, and 
beneficiaries as follows: 
(a) 
Short-term securities. 
(b) 
Fixed income securities. 
(c) 
Equity securities. 
(5) 
The Retirement Board shall determine the investment category for the accumulated balance of a member, vested 
former member, or beneficiary, if that individual does not choose to direct his or her own investments under 
subsection (4). 
(6) (a) Upon the death of a member or vested former member, the accumulated balance of the deceased member 
or deceased vested former member is considered to belong to the beneficiary or beneficiaries, if any, 
nominated by the deceased member or deceased vested former member. 
(b) To nominate a beneficiary or beneficiaries, a member shall file a written nomination with the Retirement 
Board, based on procedures established by the Retirement Board. Written consent by the member’s 
spouse to the beneficiary named is required unless the spouse is beneficiary to 100% of the balance; this 
requirement may be waived by the Retirement Board if the signature of the member’s spouse cannot be 

obtained because of extenuating circumstances. 

(7) 
Upon termination of membership, a vested former member or a beneficiary, as applicable, shall elect 1 or a 
combination of several of the following methods of distribution of the vested former member's or beneficiary's 
accumulated balance, to the extent allowed by federal law and subject to subsection 6(b) and procedures 
established by the Retirement Board: 
(a) 
Lump sum distribution to the vested former member or beneficiary. 
MERS Plan Doc: Revised as of May 13, 2009 Appendix B-3 
former lang 

.
(b) 
Lump sum direct rollover to another qualified retirement or pension plan, to the extent allowed by federal 
law. 
(c) 
Annuity for the life of the vested former member or beneficiary, or optional forms of annuity as 
determined by the Retirement Board. 
(d) 
No distribution, in which case the accumulated balance shall remain in the retirement system, to the 
extent allowed by federal law. 
(8) 
In the resolution adopting the Benefit Program DC, the participating municipality or participating court may 
provide an opportunity for current members of the retirement system to elect coverage under Benefit Program DC 
if each of the following conditions are met: 
(a) 
The member's participating municipality or participating court elects under Section 43 or 43A to change 
the benefit program from a benefit program other than Benefit Program DC to Benefit Program DC, for 
members in a benefit program coverage classification who are first hired after the effective date of the 
change. 
(b) 
On the effective date of the change to Benefit Program DC, the member is a member of the retirement 
system and is in the benefit program coverage classification described in subdivision (a). 
(c) 
On the date of the resolution adopting Benefit Program DC, the total funded percent of aggregate accrued 
liabilities and valuation assets of all reserves specified in Table 11 (or successor table [see Table 13]) of 
the most recent annual actuarial valuation report for the municipality or court is at least sixty percent 
(60%). 
(9) 
The retirement system shall offer 1 opportunity for a member who satisfies the conditions of subsection (8) to elect 
coverage under Benefit Program DC, and once made, the election is irrevocable. The member shall make the 
election under this subsection in writing, based on procedures established by the Retirement Board. The 
Retirement Board shall begin accepting written elections from members on and after the effective date of the 
change of benefit program pursuant to subsection (8), and shall not accept written elections from members: 
(a) 
Earlier than the end of the third month following the month in which the resolution is adopted and 
received by MERS; and 
(b) 
Later than the first day of the first calendar month that is at least 6 months after MERS receipt of the 
resolution. 
If the member is married at the time of election, the election is not effective unless the election is signed by the 
member's spouse, except that this requirement may be waived by the Retirement Board if the signature of the 
member's spouse cannot be obtained because of extenuating circumstances. 

(10) 
A member who makes a written election under subsection (9) shall elect to do all of the following: 
(a) 
Cease to be covered by the previous benefit program effective 12:01 a.m. on the first day of the first 
calendar month that is at least 6 months after the effective date of the change of benefit program. 
(b) 
Become covered by Benefit Program DC effective 12:01 a.m. on the first day of the first calendar month 
that is at least 6 months after the effective date of the change of benefit program. 
(c) 
Except as provided in subsection (11), waive all of his or her rights to a retirement allowance or any other 
benefit provided under the previous benefit program. 
(11) 
For each member who, under subsection (9), elects coverage under Benefit Program DC, the Retirement Board 
shall transfer the following amounts from the reserve for employee contributions and the reserve for employer 
contributions to the reserve for defined contribution plan: 
(a) 
The member's accumulated contributions, if any, as of 12:01 a.m. on the day the member becomes 
covered by Benefit Program DC shall be transferred from the reserve for employee contributions to the 
reserve for defined contribution plan. 
MERS Plan Doc: Revised as of May 13, 2009 Appendix B-4 
former lang 

.
(b) 
Pursuant to procedures established by the Retirement Board, the excess, if any, of the actuarial present 
value of the accrued benefit associated with the member's coverage under the previous benefit program, 
over the amount specified in subdivision (a), based upon the funded level percentage selected by the 
governing body in the MERS Uniform DC Program Resolution (which shall not exceed 100% 
funded level percentage in any case), shall be transferred from the reserve for employer contributions to 
the reserve for defined contribution plan. For purposes of this sub-paragraph: 
(i) 
The actuarial present value shall be computed as of 12:01 a.m. on the day the member becomes 
covered by Benefit Program DC and shall be based on the actuarial assumptions adopted by the 
Retirement Board. 
(ii) 
In determining final average compensation there shall not be included any accrued annual leave. 
(iii) 
The earliest retirement date (for an unreduced benefit) assumption under the benefit program in 
effect on the effective date of the change of the benefit program shall be utilized. 
(iv) 
For purposes of the actuarial present value calculation, any future benefit otherwise payable 
under Benefit Program E or E-1 shall be disregarded. 
(12) 
Where a member has previously acquired in the employ of any participating municipality or participating 
court: 
(a) 
not less than 1 year of defined benefit service in force with a participating municipality or 
participating court; 
(b) 
eligible credited service where the participating municipality or participating court has adopted the 
Reciprocal Retirement Act, 1961 PA 88; 
(c) 
at least 12 months in which employer contributions by a participating municipality or participating 
court have been made on behalf of the member under Benefit Program DC, such service shall on 
the member’s written request to the employer and MERS’ verification of such service be applied 
toward satisfying the vesting schedule for employer contributions. This requirement shall apply to 
all adoptions of Benefit Program DC on and after October 1, 2000; where previously adopted, the 
participating municipality or participating court may adopt this subsection (12) with full 
effectiveness as of the original defined contribution adoption date for the employer division 
involved. 
History: 1996 PA 220, Eff. Aug. 15, 1996, and Plan Document of 1996. 

Note 1: Subparagraph (8)(c) added by Board action of November 12, 1997, with immediate effect. 

Note 2: Bold text in subparagraph (11)(b) added by Board action of November 12, 1997, with immediate 
effect. 

Note 3: Deletion of prior reference to E-2 in subparagraph (11)(b)(4) by Board action of November 12, 
1997, with immediate effect. 

Note 4: Addition of subsection (12) by Board action of August 23, 2000, with immediate effect. See 
companion amendments to sections 4(1), 10(1), and 10(4). 

Note 5: Subsection (8)(c), effective with the December 31, 2001 Annual Valuations, Table 13 contains data 
formerly found in Table 11. 

—END OF PLAN DOCUMENT— 


MERS Plan Doc: Revised as of May 13, 2009 Appendix B-5 
former lang 
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