MI SB0255

Creates a new early retirement option for public school employees who file applications between April 1, 2009 and March 31, 2010, with retirement effective dates between 30 days after application and June 30, 2010.

Increases the retirement benefit multiplier from 1.5% to 2.0% of final average compensation for employees retiring under this new section 81b.

Limits the aggregate liability from increased benefits to $1.5 billion in present value, with selection of eligible retirees prioritized by years of service and application date.

Allows employees in critical shortage disciplines to extend their retirement deadline by one year (to June 30, 2011) and permits withdrawal of applications through March 15, 2010.

Requires retirees who are rehired as independent contractors by the public school system to have their pension suspended during the period of reemployment.