(1) Subject to the restrictions in subsections (2) and (3), during a reduction in force, a public employer shall retain in a position:
(a) a veteran, disabled veteran, or eligible relative whose performance has not been rated unacceptable under a performance appraisal system over other employees with similar job duties and qualifications and same length of service; and
(b) a disabled veteran with a service-connected disability of 30% or more whose performance has not been rated unacceptable under a performance appraisal system over other veterans, disabled veterans, and eligible relatives with similar job duties and qualifications and same length of service.
(2) An employee is not entitled to preference in retention under subsection (1) unless the employee is a United States citizen.
(3) The preference in retention under subsection (1) does not apply to a position covered by a collective bargaining agreement.