SENATE BILL No. 725

 

 

December 12, 2013, Introduced by Senator JANSEN and referred to the Committee on Appropriations.

 

 

 

     A bill to amend 1980 PA 300, entitled

 

"The public school employees retirement act of 1979,"

 

by amending sections 86 and 87 (MCL 38.1386 and 38.1387), as

 

amended by 2010 PA 75.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 86. (1) A member who first became a member before July 1,

 

2014 and whom the retirement board finds to have become is totally

 

and permanently disabled for purposes of employment by his or her

 

reporting unit by reason of personal injury or mental or physical

 

illness before termination of reporting unit service and employment

 

shall receive a disability allowance if all of the following

 

requirements are met:

 

     (a) The member has not met age and service requirements of

 

section 81(1)(a) or (b) or, if the member first became a member on


 

or after July 1, 2010, the member has not met age and service

 

requirements of section 81c(1).

 

     (b) The member has at least 10 years of credited service in

 

effect before termination of employment.

 

     (c) The member or reporting unit makes written application to

 

the retirement board not more than 12 months after the date the

 

member terminated public school employment.

 

     (d) The person member undergoes an examination by 1 or more

 

practicing physicians or medical officers designated by the

 

retirement board who certify to the retirement board that the

 

member is totally and permanently disabled for performing the

 

duties for the member's position or similar position for which the

 

member is qualified by reason of training, experience, or both.

 

     (2) The retirement board may extend the application time limit

 

provided in under subsection (1) not more than 24 months for a

 

member or deferred member who satisfies the other requirements of

 

subsection (1), if evidence of extenuating circumstances is

 

presented to the satisfaction of the retirement board.

 

     (3) The member's disability retirement allowance shall be

 

computed pursuant under to section 84. The effective date of the

 

disability retirant's allowance shall be determined pursuant to

 

under section 83.

 

     Sec. 87. (1) A member who first became a member before July 1,

 

2014 and whom the retirement board finds to have become is totally

 

and permanently disabled from any gainful employment by reason of

 

personal injury or mental or physical illness while serving as an

 

employee of that reporting unit shall receive a duty disability


 

retirement allowance if all of the following requirements are met:

 

     (a) The member has not met age and service requirements of

 

section 81(1)(a) or (b) or, if the member first became a member on

 

or after July 1, 2010, the member has not met age and service

 

requirements of section 81c(1).

 

     (b) The member is in receipt of receives weekly worker's

 

disability compensation on account of employment by a reporting

 

unit.

 

     (c) The member or reporting unit makes written application to

 

the retirement board not more than 12 months after the date the

 

member terminated public school employment.

 

     (d) The member undergoes an examination by 1 or more

 

practicing physicians or medical officers designated by the

 

retirement board who certify to the retirement board that the

 

member is totally and permanently disabled for performing the

 

duties for the member's position for which the member is qualified

 

by reason of training, or experience, or both.

 

     (2) The member's duty disability retirement allowance shall be

 

computed pursuant to under section 84. The effective date of the

 

duty disability retirant's allowance shall be is the first of the

 

month following the month in which the member terminates employment

 

and is in receipt of receives weekly worker's disability

 

compensation. The years of service credit used in computing the

 

retirant's duty disability retirement allowance shall not be less

 

than 10 years. If the member has less than 5 consecutive years of

 

credited service, the average of the member's annual compensation

 

shall be used.


 

     (3) Upon recovery and return to reporting unit service or upon

 

termination of the statutory period for the payment of a disability

 

retirant's worker's disability compensation, if any, arising on

 

account of the retirant's reporting unit service, the retirant

 

shall be given service credit for the period and the retirant's

 

disability retirement allowance shall be adjusted to include the

 

additional credit.