November 2, 2011, Introduced by Senators CASPERSON, NOFS and EMMONS and referred to the Committee on Appropriations.
A bill to amend 1986 PA 182, entitled
"State police retirement act of 1986,"
by amending section 40a (MCL 38.1640a), as amended by 1996 PA 201,
and by adding section 40c.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
40a. (1) Effective October 1, 1996, after the a
retirant's or retirement allowance beneficiary's retirement
allowance
is increased under section 39a, or 40, or 40c, as
applicable, a retirant or a retirement allowance beneficiary is
entitled to have his or her retirement allowance increased as
provided in this section. The retirement allowance of a retirant or
retirement allowance beneficiary shall be increased each October 1,
beginning with the later of October 1, 1995 or the first October 1
that is at least 12 months after the retirement allowance effective
date.
(2) The amount of the annual increase under this section shall
be 2% of the retirement allowance that would be payable without
application of this section. The annual increase under this section
shall not exceed $500.00.
Sec. 40c. (1) The monthly retirement allowance payable to a
retirant who meets the requirements of this section or a retirement
allowance beneficiary of a deceased retirant or member is increased
by $300.00 per month. This section only applies to a retirant or
retirement allowance beneficiary of a deceased retirant or member
who meets both of the following requirements:
(a) The retirant's or deceased retirant's effective date of
retirement was before October 1, 1986 or the retirement allowance
effective date for the retirement allowance beneficiary of the
deceased member was before October 1, 1986.
(b) The retirant or retirement allowance beneficiary was in
payment status on the rolls of the retirement system on or before
the effective date of the amendatory act that added this section.
(2) The increased retirement allowance under this section
shall be the basis upon which future adjustments to the retirement
allowance are calculated.