MI SB1226

Creates an incentivized early retirement program for state employees with applications accepted between the effective date and November 5, 2010 at 5 p.m., with retirement effective dates between November 1, 2010 and January 1, 2011.

Eligible members must have combined age and service equal to 80 years, 30+ years of service, or qualify for unreduced retirement under existing law, and must have been employed within 6 months prior to application or been laid off/on approved leave within 12 months prior.

Members retiring under this program forfeit all accumulated leave balances but receive a 60-month supplemental payment equal to 1/60 of the forfeited leave value beginning January 1, 2011.

Establishes a 3.0% employee and employer contribution rate to health care funding accounts from November 1, 2010 through September 30, 2013, collected as payroll deductions.

Appropriates $1,600,000 to the office of retirement services for administration of the program with work project completion by September 30, 2011.