MI HB6061

Allows current Tier 2 qualified participants employed as of December 31, 2024 to elect irrevocably to terminate Tier 2 participation and become Tier 1 members, with elections accepted January 1 through March 1, 2025 and effective June 1, 2025.

Requires spousal signature for elections to switch from Tier 2 to Tier 1, unless the retirement board waives the requirement due to extenuating circumstances, and makes elections subject to the Eligible Domestic Relations Order Act.

Excludes Tier 2 service credit from counting toward minimum years of service requirements, retirement allowance calculations, or health benefits eligibility for employees who elect to switch to Tier 1.

Permits members electing Tier 1 membership under the new provisions to purchase up to 5 years of additional service credit in a manner determined by the retirement system.

Expands Tier 1 membership eligibility to include individuals first employed on or after the effective date of these amendments and those hired between March 30, 1997 and the effective date who elect Tier 1 status.