HOUSE BILL No. 5038


     July 10, 1997, Introduced by Reps. DeHart and Schermesser and referred to the Committee on Public Retirement.


        A bill to amend 1943 PA 240, entitled

   "State employees' retirement act,"

   (MCL 38.1 to 38.69) by adding section 19g.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 19G.  (1) NOTWITHSTANDING SECTION 19, A MEMBER MAY

 2    RETIRE AND RECEIVE A RETIREMENT ALLOWANCE COMPUTED UNDER SECTION

 3    20(1) IF THE MEMBER MEETS ALL OF THE FOLLOWING REQUIREMENTS:

 4         (A) ON THE EFFECTIVE DATE OF HIS OR HER RETIREMENT, THE

 5    MEMBER HAS MET THE SERVICE REQUIREMENTS TO RECEIVE A RETIREMENT

 6    ALLOWANCE UNDER THIS ACT AND THE MEMBER'S COMBINED AGE AND AMOUNT

 7    OF CREDITED SERVICE IS EQUAL TO OR GREATER THAN 70 YEARS.

 8         (B) THE MEMBER IS EMPLOYED BY A HOSPITAL OR FACILITY OWNED

 9    OR OPERATED BY THE DEPARTMENT OF COMMUNITY HEALTH THAT IS CLOSING

10    AFTER THE EFFECTIVE DATE OF THIS SECTION AND ON OR BEFORE OCTOBER

11    3, 1997.


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 1         (C) THE MEMBER WAS EMPLOYED BY THE HOSPITAL OR FACILITY

 2    DESCRIBED IN SUBDIVISION (B) FOR THE 6-MONTH PERIOD ENDING ON THE

 3    EFFECTIVE DATE OF HIS OR HER RETIREMENT.  A MEMBER WHO WAS

 4    RESTORED TO ACTIVE SERVICE WITH THE HOSPITAL OR FACILITY DURING

 5    THAT 6-MONTH PERIOD UNDER SECTION 33 OR A MEMBER WHO IS ON LAYOFF

 6    STATUS FROM THE HOSPITAL OR FACILITY DURING THAT 6-MONTH PERIOD

 7    IS CONSIDERED TO HAVE MET THE EMPLOYMENT REQUIREMENT OF THIS

 8    SUBDIVISION.

 9         (D) THE MEMBER FILES A WRITTEN APPLICATION WITH THE RETIRE-

10    MENT BOARD, ON OR AFTER AUGUST 1, 1997, BUT NOT LATER THAN

11    OCTOBER 1, 1997, STATING A DATE, WHICH DATE SHALL BE 30 DAYS OR

12    MORE AFTER THE EXECUTION AND FILING OF THE APPLICATION BUT NOT

13    LATER THAN NOVEMBER 1, 1997, ON WHICH HE OR SHE DESIRES TO

14    RETIRE.

15         (2) ANY AMOUNT THAT A MEMBER RETIRING UNDER THIS SECTION

16    WOULD OTHERWISE BE ENTITLED TO RECEIVE IN A LUMP SUM AT RETIRE-

17    MENT ON ACCOUNT OF ACCUMULATED SICK LEAVE SHALL BE PAID IN 60

18    CONSECUTIVE EQUAL MONTHLY INSTALLMENTS.





















   02878'97          Final page.                            KKR