HOUSE BILL No. 4167

 

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.