MI HB6512

Allows eligible state employees to retire early between January 1, 2011 and February 1, 2011 if they meet age and service requirements (combined age and service equal to 75 years, or 65 years if employed for 20+ years) as of December 31, 2010.

Applies only to employees of the legislature, governor's office, judicial system, or unclassified civil service employees; excludes those in covered positions and conservation officers.

Requires applicants to have been continuously employed for the 30-month period ending December 1, 2010, with employees on layoff status considered as meeting this requirement.

Provides retirement allowance calculations at 1.5% of final average compensation per year of service for those not meeting the 30-month employment requirement, and at 1.75% for Tier 1 members (or 0.25% for Tier 2 members) who meet all requirements.

Mandates accumulated sick leave payouts be distributed as 60 equal monthly installments beginning February 1, 2011 from agency funds rather than the retirement system, and imposes a 2-year state hiring restriction on employees who retire under this program.