HOUSE BILL No. 6531 December 3, 2002, Introduced by Rep. Shackleton and referred to the Committee on Appropriations. 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, and by adding sections 48a and 48b. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 27. (1) If a member dies as a result of a personal 2 injury or disease arising out of and in the course of his or her 3 employment withtheTHIS state, or a disability retirant who 4 retired under section 21 diesprior toBEFORE becoming age 60 5 and within 3 years after the member's disability retirement from 6 the same causes for which he or she was retired, andsuchTHE 7 death or illness or injuries resulting in death are found by the 8 retirement board to have been the soleand exclusiveresult of 9 employment withtheTHIS state, the applicable benefits 07447'02 MRM 2 1 provided in subsections (2), (3), (4), and (5) shall be paid, 2 subject to subsection (6). 3 (2) The accumulated contributions standing to the member's 4 account in the employees' savings fund shall be paid tosuch5 THE person or persons as the member has nominated by written des- 6 ignationdulyexecuted and filed with the retirement board, or 7 if there are nosuchdesignated person or persons surviving, 8 then to the member's legal representative. 9 (3) A retirement allowance of 1/3 of the final compensation 10 of the deceased person shall be paid to the surviving spouse to 11 whom the deceased person was married at the time he or she last 12 terminated employment with the state. If a child or children 13 under the age of 18 years also survives the deceased person, each 14suchSURVIVING child shall receive an allowance of an equal 15 share of 1/4 of the deceased person's final compensation. Upon 16 the marriage, death, or attainment of age 18 years ofany such17 A child RECEIVING AN ALLOWANCE UNDER THIS SUBSECTION, there shall 18 be a redistribution by the retirement board to the deceased 19 person's remaining children under age 18 years. 20 (4) If there is no surviving spouse or if the surviving 21 spouse dies before the youngest surviving child of the deceased 22 person reaches the age of 18 years, then eachsuchSURVIVING 23 child under age 18 shall each receive an allowance equal to 1/4 24 of the deceased person's final compensation, but the totalso25 paid in any year to the children of a deceased person shall not 26 exceed 1/2 of his or her final compensation. If there are more 27 than 2suchsurviving children under age 18 years, eachsuch07447'02 3 1 SURVIVING child shall receive an allowance of an equal share of 2 1/2 of the deceased person's final compensation. Upon the mar- 3 riage, death, or attainment of age 18 years of anysuch4 SURVIVING child, the child's allowance shall terminate and there 5 shall be a redistribution by the retirement board to any remain- 6 ing eligible children of the deceased under age 18, but a child 7 shall not receive an allowance more than 1/4 of the deceased 8 person's final compensation. 9 (5) If there is neither a spouse nor a child under age 18 10 years surviving the deceased person, then there shall be paid to 11 each parent of the deceased person whom the retirement board 12 after investigation determines to have been actually dependent 13 upon the deceased person through absence of earning power due to 14 disability, an allowance of 1/6 of the deceased person's final 15 compensation. 16 (6)TheEXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, 17 THE total of the retirement allowances payable under subsections 18 (3), (4), and (5) on account of the death of a member or retirant 19 shall not exceed $2,400.00 perannumYEAR, nor an amount which, 20 when added to the statutory worker's compensation benefit to 21 which the dependents of the member or retirant are entitled, 22 exceeds his or her final compensation. IF THE RETIREMENT ALLOW- 23 ANCE PAYABLE UNDER THIS SECTION IS TO SURVIVORS OF A CONSERVATION 24 OFFICER WHOSE DEATH WAS A RESULT OF A PERSONAL INJURY OR DISEASE 25 ARISING OUT OF AND IN THE COURSE OF HIS OR HER EMPLOYMENT AS A 26 CONSERVATION OFFICER WITH THIS STATE, THE TOTAL OF THE RETIREMENT 27 ALLOWANCES PAYABLE UNDER SUBSECTION (3), (4), OR (5) SHALL NOT 07447'02 4 1 EXCEED $5,000.00 PER YEAR, NOR AN AMOUNT WHICH, WHEN ADDED TO THE 2 STATUTORY WORKER'S COMPENSATION BENEFIT TO WHICH THE DEPENDENTS 3 OF THE MEMBER OR RETIRANT ARE ENTITLED, EXCEEDS HIS OR HER FINAL 4 COMPENSATION. 5 SEC. 48A. (1) EFFECTIVE OCTOBER 1, 2002, THE MONTHLY 6 RETIREMENT ALLOWANCE PAYABLE TO A RETIRANT OR RETIREMENT ALLOW- 7 ANCE BENEFICIARY WHO MEETS THE REQUIREMENTS OF SUBSECTION (2) IS 8 INCREASED AS FOLLOWS: 9 EFFECTIVE DATE OF RETIREMENT PERCENT OF INCREASE 10 OCTOBER 1, 1987 TO MARCH 30, 1991 10 11 OCTOBER 1, 1986 TO SEPTEMBER 30, 1987 12 12 OCTOBER 1, 1985 TO SEPTEMBER 30, 1986 14 13 OCTOBER 1, 1984 TO SEPTEMBER 30, 1985 16 14 OCTOBER 1, 1983 TO SEPTEMBER 30, 1984 18 15 OCTOBER 1, 1982 TO SEPTEMBER 30, 1983 20 16 OCTOBER 1, 1981 TO SEPTEMBER 30, 1982 22 17 OCTOBER 1, 1980 TO SEPTEMBER 30, 1981 24 18 OCTOBER 1, 1979 TO SEPTEMBER 30, 1980 26 19 OCTOBER 1, 1978 TO SEPTEMBER 30, 1979 28 20 OCTOBER 1, 1977 TO SEPTEMBER 30, 1978 30 21 OCTOBER 1, 1976 TO SEPTEMBER 30, 1977 32 22 OCTOBER 1, 1975 TO SEPTEMBER 30, 1976 34 23 OCTOBER 1, 1974 TO SEPTEMBER 30, 1975 36 24 OCTOBER 1, 1973 TO SEPTEMBER 30, 1974 38 07447'02 5 1 BEFORE OCTOBER 1, 1973 40 2 (2) THIS SECTION ONLY APPLIES TO A RETIRANT OR RETIREMENT 3 ALLOWANCE BENEFICIARY OF A DECEASED RETIRANT WHO MEETS ALL OF THE 4 FOLLOWING REQUIREMENTS: 5 (A) THE RETIRANT OR DECEASED RETIRANT RETIRED AFTER 25 YEARS 6 OR MORE OF SERVICE AS A CONSERVATION OFFICER OR BECAUSE OF 7 DUTY-INCURRED TOTAL DISABILITY AS A CONSERVATION OFFICER UNDER 8 SECTION 21. 9 (B) THE RETIRANT OR RETIREMENT ALLOWANCE BENEFICIARY WAS IN 10 PAYMENT STATUS ON OCTOBER 1, 2002. 11 (3) THE INCREASED RETIREMENT ALLOWANCE UNDER THIS SECTION 12 SHALL BE THE BASIS UPON WHICH FUTURE ADJUSTMENTS TO THE RETIRE- 13 MENT ALLOWANCE, INCLUDING THE INCREASE UNDER SECTION 48B, IF 14 APPLICABLE, ARE CALCULATED. 15 (4) THE SUPPLEMENT PROVIDED BY THIS SECTION SHALL BE CALCU- 16 LATED PURSUANT TO SUBSECTION (1), SHALL BE BASED ON THE AMOUNT OF 17 RETIREMENT ALLOWANCE THAT WOULD HAVE BEEN PAID WITHOUT APPLICA- 18 TION OF SECTION 20(2) IF THE MEMBER MADE THE ELECTION PERMITTED 19 UNDER SECTION 20(2), AND SHALL BE PAID BY JANUARY 1, 2003. THE 20 RETIREMENT ALLOWANCE OF A RETIRANT WHO DIES BEFORE JANUARY 1, 21 2003 AND WHO HAS NOT NOMINATED A RETIREMENT ALLOWANCE BENEFICIARY 22 PURSUANT TO SECTION 31 SHALL NOT BE SUPPLEMENTED PURSUANT TO THIS 23 SECTION. 24 SEC. 48B. (1) EFFECTIVE OCTOBER 1, 2002, AFTER THE 25 RETIRANT'S RETIREMENT ALLOWANCE IS INCREASED UNDER SECTION 48A, 26 IF APPLICABLE, A RETIRANT WHO MEETS THE REQUIREMENTS OF SECTION 27 48A(2) SHALL RECEIVE A TOTAL RETIREMENT ALLOWANCE OF NOT LESS 07447'02 6 1 THAN $10,800.00 PER ANNUM. EFFECTIVE OCTOBER 1, 2002, AFTER THE 2 RETIREMENT ALLOWANCE BENEFICIARY'S RETIREMENT ALLOWANCE IS 3 INCREASED UNDER SECTION 48A, IF APPLICABLE, A RETIREMENT ALLOW- 4 ANCE BENEFICIARY OF A DECEASED RETIRANT WHO MEETS THE REQUIRE- 5 MENTS OF SECTION 48A(2) SHALL RECEIVE A TOTAL RETIREMENT ALLOW- 6 ANCE OF NOT LESS THAN $5,400.00 PER ANNUM. 7 (2) THE INCREASED RETIREMENT ALLOWANCE UNDER THIS SECTION 8 SHALL BE THE BASIS UPON WHICH FUTURE ADJUSTMENTS TO THE RETIRE- 9 MENT ALLOWANCE ARE CALCULATED. 07447'02 Final page. MRM