MI HB6005

Amends section 61 of the Public School Employees Retirement Act to modify requirements for retirants who become employed by a reporting unit.

Retirants cannot earn new service credit or have retirement allowance recomputed unless they perform 5 or more years of additional service (or 3 or more years if in the member investment plan), and must pay into the system based on new compensation and service credit.

Retirants' retirement allowances are reduced by the lesser of excess earnings over Social Security Act limits or 1/3 of their final average compensation, with the allowable compensation threshold increasing 5% annually during retirement.

Exempts university-employed retirants (teachers and researchers) from restrictions if they do not use that employment to recompute benefits, and exempts retirants employed in emergency situations or critical shortage disciplines until July 1, 2011, if employed for no more than 6 years.

Beginning October 1, 2010, retirants working as independent contractors or through third parties for a reporting unit must contribute to the retirement system at amounts determined by the system.