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Michigan Statutes, Title 38

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Michigan/Statutes

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Title 38, CIVIL SERVICE AND RETIREMENT

47 chapters · 822 sections in this title.

All chapters in Title 38822 Ch 240-of-1943, STATE EMPLOYEES' RETIREMENT ACT119 Ch 300-of-1980, THE PUBLIC SCHOOL EMPLOYEES RETIREME…114 Ch 261-of-1957, MICHIGAN LEGISLATIVE RETIREMENT SYST…95 Ch 234-of-1992, THE JUDGES RETIREMENT ACT OF 199290 Ch 182-of-1986, STATE POLICE RETIREMENT ACT OF 198674 Ch 4-of-1937 (Ex. Sess.), TEACHERS' TENURE38 Ch 314-of-1965, PUBLIC EMPLOYEE RETIREMENT SYSTEM IN…36 Ch 370-of-1941, COUNTY EMPLOYEES' CIVIL SERVICE SYSTEM30 Ch 205-of-1951, SOCIAL SECURITY FOR PUBLIC EMPLOYEES21 Ch 246-of-1965, TOWNSHIP CIVIL SERVICE SYSTEM21 Ch 78-of-1935, FIREMEN AND POLICEMEN CIVIL SERVICE …20 Ch 345-of-1937, FIRE FIGHTERS AND POLICE OFFICERS RE…20 Ch 77-of-2010, PUBLIC EMPLOYEE RETIREMENT HEALTH CA…19 Ch 46-of-1991, ELIGIBLE DOMESTIC RELATIONS ORDER ACT11

36 sections·Filtered byTitle 38✕Ch 314-of-1965✕

Mich. Comp. Laws § 38.1132 Short title; meanings of words and phrases.
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Sec. 12. (1) This act shall be known and may be cited as the "public employee retirement system investment act". (2) For the purposes of this act, the words and phrases defined in sections 12a to 12f have the meanings ascribed to them in those sections.
Mich. Comp. Laws § 38.1132a Definitions; A.
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Sec. 12a. "Assets", for the purpose of meeting asset limitations contained in this act, means the total of the cash and investments of a system valued at market.
Mich. Comp. Laws § 38.1132b Definitions; D to G.
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Sec. 12b. (1) "Defined contribution plan" means a defined contribution plan as defined in section 414(i) in the internal revenue code, 26 USC 414. (2) "Derivative" means either of the following: (a) A contract or convertible security that changes in value in concert with a relate…
Mich. Comp. Laws § 38.1132c Definitions; I to L.
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Sec. 12c. (1) "Investment fiduciary" means a person other than a participant directing the investment of the assets of his or her individual account in a defined contribution plan who does any of the following: (a) Exercises any discretionary authority or control in the investmen…

Mich. Comp. Laws § 38.1132d Definitions; N to P.

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Sec. 12d. (1) "National rating services" means Moody's investors service, inc.; Standard & Poor's ratings group; Fitch investors service inc.; Duff & Phelps credit rating corp.; or any other nationally recognized statistical rating organization as determined by the state treasure…

Mich. Comp. Laws § 38.1132e Definitions; S.

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Sec. 12e. (1) "Small business" means a corporation, partnership, sole proprietorship, or other entity which does not meet the specific requirements of investments permitted under this act. (2) "Small business investment company" means an incorporated body or a limited partnership…

Mich. Comp. Laws § 38.1132f Definitions; V.

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Sec. 12f. "Venture capital firm" means a corporation, partnership, proprietorship, or other entity, the principal business of which is or will be the making of investments in small business, either directly or indirectly by investing in entities the principal business of which is…

Mich. Comp. Laws § 38.1133 Investment authority; investment fiduciary; investing, reinvesting, holding in nominee form, and managing assets of system; powers and duties; compliance with divestment from terror act; costs; "consumer price index" defined; disclosure of fees or other compensation by investment service provider; "investment service provider" defined; prohibited acts; exceptions; requirements; debt instrument issued by foreign country; out-of-state travel; investment in hazardous waste deep disposal well facility; testimony by representative of office of retirement services in department of technology, management, and budget; executive summary of summary annual report; posting on website; submission to legislature; "state unit" defined.

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Sec. 13. (1) This act supersedes any investment authority previously granted to a system under any other law of this state. (2) The assets of a system may be invested, reinvested, held in nominee form, and managed by an investment fiduciary subject to the terms, conditions, and l…

Mich. Comp. Laws § 38.1133a “MacBride principles” defined; duties of investment fiduciary; effect of unlawful principle.

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Sec. 13a. (1) As used in this section, "MacBride principles" means those requirements for companies doing business in Northern Ireland designed to do all of the following: (a) Increase the representation of individuals from underrepresented religious groups in the work force incl…

Mich. Comp. Laws § 38.1133c Definitions; effort by fiduciary to identify scrutinized companies; assembly into scrutinized companies list; update and availability of list; procedures; report; effectiveness of section; exemption of fiduciary from conflicting statutory or common law obligations; liability; affirmative exclusion from federal sanctions; severability.

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Sec. 13c. (1) As used in this section: (a) "Active business operations" means all business operations that are not inactive business operations. (b) "Business operations" means engaging in commerce in any form in Sudan, including by acquiring, developing, maintaining, owning, sel…

Mich. Comp. Laws § 38.1133d Definitions; scrutinized companies; identification by fiduciaries; assembling scrutinized companies list; update by fiduciary; procedure; report; effectiveness of section; conditions; liability of fiduciary; scrutinized company affirmatively excluded from federal sanctions; effect; severability.

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Sec. 13d. (1) As used in this section: (a) "Active business operations" means all business operations that are not inactive business operations. (b) "Business operations" means engaging in commerce in any form in Iran, including by acquiring, developing, maintaining, owning, sell…

Mich. Comp. Laws § 38.1133e Prohibited conduct by investment fiduciary, service provider, or covered associate of service provider; exceptions; definitions; official of governmental entity.

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Sec. 13e. (1) An investment fiduciary shall not make a payment from the assets of a system to a service provider if the service provider or a covered associate of the service provider has made a contribution to an official of a governmental entity during the immediately preceding…

Mich. Comp. Laws § 38.1133f Breach of public trust by investment fiduciary or service provider; "service provider" defined.

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Sec. 13f. (1) An investment fiduciary or a service provider who is convicted of or who enters a nolo contendere plea accepted by a court for a felony or misdemeanor arising out of his or her service to a system is considered to have breached the public trust and shall reimburse t…

Mich. Comp. Laws § 38.1133g Investment committee; establishment by large sponsored system; duties; recommendation; definitions.

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Sec. 13g. (1) Subject to a plan for adjustment, each large sponsored system shall establish an investment committee. (2) The investment committee shall recommend to the governing board of the large sponsored system investment management decisions, including, but not limited to, a…

Mich. Comp. Laws § 38.1134 Investment in stock or global security.

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Sec. 14. (1) An investment fiduciary shall not invest more than 70% of a system's assets in stock or the type of global security described in section 12b(4)(b). An investment fiduciary shall not invest in more than 5% of the outstanding stock of any 1 corporation, or invest more …

Mich. Comp. Laws § 38.1135 Investment in investment companies.

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Sec. 15. An investment fiduciary may invest in investment companies registered under the investment company act of 1940, 15 USC 80a-1 to 80a-64. The management company of the investment company shall have been in operation for at least 5 years and shall have assets under manageme…

Mich. Comp. Laws § 38.1136 Investment in annuity investment contracts or participations in separate accounts of life insurance company; investment in general account of life insurer; requirements.

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Sec. 16. (1) An investment fiduciary may invest in annuity investment contracts or participations in separate real estate, mortgage, bond, stock, or other special investment accounts of a life insurance company authorized to do business in this state. An investment in such a sepa…

Mich. Comp. Laws § 38.1137 Other authorized investments; prohibited investments.

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Sec. 17. (1) An investment fiduciary may invest in any of the following: (a) Obligations issued, assumed, or guaranteed by a solvent entity created or existing under the laws of the United States or of any state, district, or territory of the United States, which are not in defau…

Mich. Comp. Laws § 38.1138 Investment in real estate or mortgages on certain leased real property.

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Sec. 18. An investment fiduciary may invest in real estate or mortgages on real property leased or to be leased to the United States government, or to a state, territory, agency, authority, or public instrumentality of the United States, if the investment does not exceed 100% of …

Mich. Comp. Laws § 38.1139 Investment in real estate investment trust or real or personal property.

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Sec. 19. (1) An investment fiduciary may invest up to 10% of a system's assets in publicly or privately issued real estate investment trusts or in real or personal property otherwise qualified pursuant to section 15, 16, or 20c. (2) In addition to investments authorized under sub…

Mich. Comp. Laws § 38.1139a State treasurer as investment fiduciary; investments in private equity; limitation; investment fiduciary not state treasurer; limitation.

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Sec. 19a. (1) If the investment fiduciary is the state treasurer, investments in private equity shall not be more than 30% of the system's total assets. If the investment fiduciary is not the state treasurer and the system has assets of $1,000,000,000.00 or more, investments in p…

Mich. Comp. Laws § 38.1139b Deduction from employee compensation by public employer; automatic enrollment of employee; notice; investment alternatives; liability; definitions.

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Sec. 19b. (1) A public employer may deduct from the compensation of an employee an amount for contribution to an individual account for the employee's benefit in a plan maintained under section 125, 401(k), 403(b), 408, 408A, or 457 of the internal revenue code of 1986, 26 USC 12…

Mich. Comp. Laws § 38.1140 Investment in secured loans; real property not considered encumbered; investment in part of obligation or participation interest in loan or group of loans; investment in real estate loan; investment in loan or loans or certificate of participation secured by loan or loans made on single family residential property; investment in certificates representing interest in mortgages or group of mortgages; limitations and restrictions; investment in second mortgage; investment with variable interest rate.

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Sec. 20. (1) An investment fiduciary may invest in loans secured by any of the following: (a) First liens upon improved or income bearing real property, including but not limited to improved agricultural land, and improved business, industrial, and residential properties. (b) Fir…

Mich. Comp. Laws § 38.1140a Investment in debt, warrant, or equity interest in small business, small business investment company, or venture capital firm; creation of small business investment companies or venture capital firms to invest in small businesses; limitation.

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Sec. 20a. (1) Except as provided in subsection (2), an investment fiduciary of a system having assets of more than $250,000,000.00 may invest not more than 2% of a system's assets in a debt, warrant, or equity interest in a small business having more than 1/2 of the small busines…

Mich. Comp. Laws § 38.1140b Deposits by investment fiduciary.

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Sec. 20b. An investment fiduciary may make interest bearing deposits with the treasurer of the political subdivision sponsoring the system or with the state treasurer, either of whom may then manage and invest the deposits in a collective investment fund, common trust fund, or po…

Mich. Comp. Laws § 38.1140c Financial institution, trust company, or management company retained as investment fiduciary; investment of system assets in collective investment fund, common trust fund, or pooled fund established and maintained by financial institution or management company; “financial institution” defined.

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Sec. 20c. (1) A financial institution, a trust company, a management company qualified under section 15, or any affiliate of a person described in this section if that affiliate qualifies as an investment fiduciary under section 13(11), retained to act as an investment fiduciary …

Mich. Comp. Laws § 38.1140d Investments not qualified under act.

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Sec. 20d. (1) An investment fiduciary of a system having assets of less than $250,000,000.00 may invest not more than 15% of the system's assets in investments not otherwise qualified under this act, except as qualified in section 19a, whether the investments are similar or dissi…

Mich. Comp. Laws § 38.1140e Loan of securities by investment fiduciary.

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Sec. 20e. (1) An investment fiduciary may loan bonds, stocks, or other securities if at the time the loan is executed, at least 102% of the full market value of the security loaned is secured by collateral of cash to be invested in 1 or more of the following: (a) Securities grade…

Mich. Comp. Laws § 38.1140f Transferring and holding securities.

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Sec. 20f. An investment fiduciary may use 1 or more nominees to facilitate transfer of a system's securities and may hold the securities in safekeeping with the federal reserve system, a clearing corporation, or a custodian bank which is a member of the federal reserve system.

Mich. Comp. Laws § 38.1140g Investment in securities exempt from taxes.

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Sec. 20g. Notwithstanding any other provision of this act, investment in securities wholly or partially exempt from income or other taxes levied by the United States shall be made only at taxable-equivalent yields or returns available in the marketplace on otherwise comparable se…

Mich. Comp. Laws § 38.1140h Applicable law; retention of financial records; "financial records" defined; disclosure of certain information; actuarial valuation; supplemental actuarial analysis; "proposed pension benefit change" defined; availability and publication of summary annual report.

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Sec. 20h. (1) In addition to the provisions of this act, a system is subject to the applicable accounting, auditing, and reporting requirements contained in the following acts and parts of acts: (a) 1919 PA 71, MCL 21.41 to 21.55. (b) The uniform budgeting and accounting act, 196…

Mich. Comp. Laws § 38.1140j Investment in derivatives.

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Sec. 20j. (1) Subject to qualification elsewhere in this act, an investment fiduciary may invest in any of the following: (a) A derivative that hedges positions of a nonderivative component of a portfolio that clearly reduces a defined risk. (b) A derivative that replicates the r…

Mich. Comp. Laws § 38.1140k Investment in global securities; prohibited conduct.

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Sec. 20k. (1) Notwithstanding a percentage of total assets limitation for an investment provided in any other section of this act, an investment fiduciary who is the state treasurer or the investment fiduciary of a system that has assets of $2,000,000,000.00 or more may invest no…

Mich. Comp. Laws § 38.1140l Financial or proprietary information.

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Sec. 20l (1) A record or portion of a record, material, or other data received, prepared, used, or retained by an investment fiduciary in connection with the investment of assets of a system that relates to financial or proprietary information pertaining to a portfolio company in…

Mich. Comp. Laws § 38.1140m Employer contribution.

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Sec. 20m. (1) The governing board vested with the general administration, management, and operation of a system or other decision-making body that is responsible for implementation and supervision of any system shall confirm in the annual actuarial valuation required under sectio…

Mich. Comp. Laws § 38.1141 Removal of member of board or body.

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Sec. 21. (1) Subject to this section, the governing board vested with the general administration, management, and operation of a system or other decision-making body that is responsible for implementation and supervision of a system may remove a member of the board or body as pro…