SB-0524, As Passed Senate, January 22, 2008

SUBSTITUTE FOR

SENATE BILL NO. 524

     A bill to amend 1992 PA 234, entitled

"The judges retirement act of 1992,"

(MCL 38.2101 to 38.2670) by adding section 514.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 514. (1) Effective July 1, 2007, the retirement allowance

payable to a retirant or beneficiary of a deceased retirant who

meets the requirements of subsection (2) under Tier 1 is

supplemented by 67%.

     (2) To qualify for the supplement in subsection (1), all of

the following shall apply to a retirant of Tier 1:

     (a) The retirant was potentially eligible to purchase 2 years'

service credit under this act, the former judge's retirement

system, or the former probate judge's retirement system because the

retirant served honorably on active duty as a member of the armed

services of the United States.

     (b) The retirant was unable to purchase the service credit

while a member because the retirant had not accumulated 12 years of

credited service.

     (c) The retirant was greater than 60 years of age when he or

she entered the system and was prevented from accumulating 12 years

of credited service by the mandatory retirement age for judges

found in section 19(3) of article VI of the state constitution of

1963.

     (3) The percentage of final compensation limits of section 503

do not apply to the increase authorized by this section.

     (4) The recalculated retirement allowance shall be the basis

on which future adjustments to the retirement allowance are

calculated.

     (5) The supplement provided by this section shall be paid

annually. For a retirant or beneficiary of a deceased retirant who

is eligible to receive a supplement under this section, who is

receiving a retirement allowance pursuant to service credited under

the former judges retirement system, and who is receiving a

retirement allowance pursuant to service credited under the former

probate judges retirement system, the retirement system, pursuant

to this section, shall only supplement the retirement allowance

that is the largest in amount. If a retirant dies before December

31, 2007 and no benefits become payable under section 506 or 508,

the retirant's retirement allowance shall not be supplemented under

this section.