Michigan Compiled Laws

Mich. Comp. Laws § 38.2 (2026)

State employees' retirement system; creation; administration by retirement board; rules.

✓ current as of July 2026
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STATE EMPLOYEES' RETIREMENT ACT


Act 240 of 1943


38.2 State employees' retirement system; creation; administration by retirement board; rules.

Sec. 2.

    (1) A state employees' retirement system is created for the employees of the state of Michigan.

    (2) Except as otherwise provided in this section, the administration and management of the retirement system and the responsibility for making effective the provisions of this act are vested in a retirement board. Except as otherwise provided in this section, the retirement board may promulgate rules pursuant to the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws, for the implementation and administration of this act.

    (3) Subsection (2) does not apply to the Tier 2 retirement plan. The retirement board shall not promulgate rules for the establishment, implementation, administration, operation, investment, or distribution of a Tier 2 retirement plan.

History: 1943, Act 240, Eff. July 30, 1943 ;-- CL 1948, 38.2 ;-- Am. 1996, Act 487, Eff. Mar. 31, 1997

Compiler's Notes:

    Section 2 of Act 487 of 1996 provides:

    “If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”

    For transfer of powers and duties of state employees' retirement system board to Michigan retirement board, and abolishment of state employees' employees' retirement system board, see E.R.O. No. 2015-4, compiled at MCL 38.1174.

AdminRule Notes:

    R 38.11 and R 38.12 of the Michigan Administrative Code.

Notes of Decisions
Cited in 4 cases, 1982–2015 · leading case: Bott v. Nat. Resources Comm'n, 327 N.W.2d 838 (Mich. 1982).
Bott v. Nat. Resources Comm'n, 327 N.W.2d 838 (Mich. 1982). · cites it 2× “[25] Further discussion of the public's right of access to water from a public highway may be found in: 1 Farnham, The Law of Waters and Water Rights, § 141, pp 654-656; 1 Clark, ed, Waters and Water Rights, ch 3; Stone, Public Rights in Water Uses and Private Rights in Land…”
Michigan Coalition of State Emp. Unions v. State of Michigan, 870 N.W.2d 275 (Mich. 2015). · cites it 2× “21 To the contrary, the commission acknowledges only an advisory role in the administration of SERA.”
Galuszka v. State Employees' Ret. Sys., 693 N.W.2d 403 (Mich. Ct. App. 2005). “…provides that “the retirement board may promulgate rules pursuant to the administrative procedures act of 1969 . .. MCL 38.2(2) (emphasis added).”
Alcona Cmty. Schs. v. State, 549 N.W.2d 356 (Mich. Ct. App. 1996). “” MCL 38.2; MSA 3.981(2). The agreement directly benefits plaintiffs’ employees, not plaintiffs, in providing that social security contributions are made.”
— Mich. Comp. Laws § 38.2(1) — 1 case
Michigan Coalition of State Emp. Unions v. State of Michigan, 870 N.W.2d 275 (Mich. 2015). “21 To the contrary, the commission acknowledges only an advisory role in the administration of SERA.”
— Mich. Comp. Laws § 38.2(2) — 1 case
Galuszka v. State Employees' Ret. Sys., 693 N.W.2d 403 (Mich. Ct. App. 2005). “…provides that “the retirement board may promulgate rules pursuant to the administrative procedures act of 1969 . .. MCL 38.2(2) (emphasis added).”
— Mich. Comp. Laws § 38.2(B) — 1 case
Bott v. Nat. Resources Comm'n, 327 N.W.2d 838 (Mich. 1982). “[25] Further discussion of the public's right of access to water from a public highway may be found in: 1 Farnham, The Law of Waters and Water Rights, § 141, pp 654-656; 1 Clark, ed, Waters and Water Rights, ch 3; Stone, Public Rights in Water Uses and Private Rights in Land…”
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