HOUSE BILL No. 4334


     February 22, 2001, Introduced by Reps. Vander Roest, Meyer, Julian, Kuipers, Richardville, Pappageorge, Spade, Bovin, Lipsey and Birkholz and
referred to the Committee on Senior Health, Security and Retirement.


        A bill to amend 1943 PA 240, entitled

   "State employees' retirement act,"

   by amending section 27 (MCL 38.27), as amended by 1987 PA 241.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 27.  (1) If a member dies as a result of a personal

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      injury or disease arising out of and in the course of his or her

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      employment with the state, or a disability retirant who retired

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      under section 21 dies prior to becoming age 60 and within 3 years

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      after the member's disability retirement from the same causes for

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      which he or she was retired, and  such  THE death or illness or

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      injuries resulting in death are found by the retirement board to

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      have been the sole and exclusive result of employment with  the

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      THIS state, the applicable benefits provided in subsections (2),

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      (3), (4), and (5) shall be paid, subject to subsection (6).




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           (2) The accumulated contributions standing to the member's

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      account in the employees' savings fund shall be paid to  such

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      THE person or persons  as  the member has nominated by written

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      designation  duly  executed and filed with the retirement board,

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      or if there are no  such  designated person or persons surviving,

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      then to the member's legal representative.

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           (3) A retirement allowance of 1/3 of the final compensation

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      of the deceased person shall be paid to the surviving spouse to

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      whom the deceased person was married at the time he or she last

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      terminated employment with  the  THIS state.  If a child or chil-

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      dren under the age of 18 years also survives the deceased person,

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      each such child shall receive an allowance of an equal share of

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      1/4 of the deceased person's final compensation.  Upon the mar-

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      riage, death, or attainment of age 18 years of  any such  A

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      child, there shall be a redistribution by the retirement board to

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      the deceased person's remaining children under age 18 years.

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           (4) If there is no surviving spouse or if the surviving

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      spouse dies before the youngest surviving child of the deceased

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      person reaches the age of 18 years, then each  such  child under

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      age 18 shall each receive an allowance equal to 1/4 of the

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      deceased person's final compensation, but the total  so  paid in

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      any year to the children of a deceased person shall not exceed

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      1/2 of his or her final compensation.  If there are more than 2

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       such  surviving children under age 18 years, each such child

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      shall receive an allowance of an equal share of 1/2 of the

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      deceased person's final compensation.  Upon the marriage, death,

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      or attainment of age 18 years of any  such  child, the child's



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      allowance shall terminate and there shall be a redistribution by

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      the retirement board to any remaining eligible children of the

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      deceased under age 18, but a child shall not receive an allowance

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      OF more than 1/4 of the deceased person's final compensation.

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           (5) If there is neither a spouse nor a child under age 18

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      years surviving the deceased person, then there shall be paid to

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      each parent of the deceased person whom the retirement board

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      after investigation determines to have been actually dependent

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      upon the deceased person through absence of earning power due to

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      disability, an allowance of 1/6 of the deceased person's final

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      compensation.

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           (6) The total of the retirement allowances payable under

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      subsections (3), (4), and (5) on account of the death of a member

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      or retirant shall not exceed  $2,400.00 per annum, nor  an amount

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       which  THAT, when added to the statutory worker's compensation

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      benefit to which the dependents of the member or retirant are

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      entitled, exceeds his or her final compensation.























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