S.B. 692: COMMITTEE SUMMARY - RETIREMENT PAYMENTS TO ESTATE

Senate Bill 692 (as introduced 9-23-97)

Date Completed: 9-23-97

CONTENT

The bill would amend the Public School Employees Retirement Act to allow supplemental payments to be paid to a retirant's estate in the case of the death of both the retirant and the retirant's beneficiary. Currently, members who retired before January 1, 1987 receive the higher of a 3% increase annually, or a distribution of investment income earned in excess of 8% (13th check). Basic Plan members who retired after January 1, 1987 receive only a 13th check. Member Investment Plan members only receive an annual 3% increase (non-compounded).

Currently, if the retirant and the retirant beneficiary die before receipt of the 13th check, no payment is made. This bill would amend the Act so that in the case of the death of the retirant and the retirant's beneficiary prior to receiving the supplemental payment, the payment would be made to the retirant's estate.

FISCAL IMPACT:

This bill would have no fiscal impact on State or local resources.

MCL 38.1404a - - Fiscal Analyst: J. Carrasco

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.