February 2, 2005, Introduced by Rep. Pastor and referred to the Committee on Judiciary.
A bill to amend 1992 PA 234, entitled
"The judges retirement act of 1992,"
(MCL 38.2101 to 38.2670) by adding section 513.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 513. (1) Effective January 1, 2006, the retirement
allowance payable to a retirant or beneficiary of a deceased
retirant under Tier 1 is supplemented by the amount determined
under subsection (2).
(2) On or before April 1 of each state fiscal year, the
retirement system shall determine the amount by which the actuarial
value of the assets in Tier 1 exceed the present value of expected
future benefit payments for Tier 1 beneficiaries. If the amount by
which the actuarial value of the assets in Tier 1 exceed the
present value of expected future benefit payments for Tier 1
beneficiaries is an amount that will allow retirants and retirement
allowance beneficiaries to receive individual increases of $900.00
per year, the retirement system shall grant an increase of $900.00
per year to each retirant and retirement allowance beneficiary
receiving retirement payments under this act. In any year in which
the actuarial value of assets exceeds the present value of expected
future benefit payments by an amount less than the value of $900.00
per retirant, the increase shall be reduced on a pro rata basis to
reflect an amount less than $900.00 per retirant. If the actuarial
value of assets does not exceed the present value of expected
future benefits, no increase will be given for that year.
(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
calculated pursuant to subsection (2) and 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 July 1,
2006 and no benefits become payable under section 506 or 508, the
retirant's retirement allowance shall not be supplemented under
this section.