HB-5238, As Passed House, February 5, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5238

                                                                             A bill to amend 1986 PA 182, entitled                                             

"State police retirement act of 1986,"                                      

(MCL 38.1601 to 38.1648) by adding section 41a.                             

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1   Sec. 41a.  (1) On or after January 1, 2005, the monthly                     

2   retirement allowance payable to a retirant who participated and             

3   accrued leave time in the bank time hours program established by            

4   the civil service system and operating from December 22, 1957 to            

5   July 13, 1963 when the retirant was a member is supplemented by             

6   an increase calculated under subsection (3).                                

7       (2) On or after January 1, 2005, the retirement allowance                   

8   beneficiary of a deceased retirant who would have been eligible             

9   for an increased retirement allowance under subsection (1) shall            

10  have his or her retirement allowance supplemented by an increase            

11  calculated under subsection (3).                                            

1       (3) A retirant or the retirement allowance beneficiary of a                 

2   deceased retirant who accrued no less than 5,276 bank time hours            

3   shall have his or her annual retirement allowance supplemented by           

4   an increase of 17%.  A retirant or the retirement allowance                 

5   beneficiary of a deceased retirant who has accrued fewer than               

6   5,276 bank time hours shall have his or her retirement allowance            

7   supplemented by an increase of a percentage determined by                   

8   multiplying 17% by a fraction, the numerator of which is the                

9   number of bank time hours accrued by the retirant or deceased               

10  retirant and the denominator of which is 5,276.  If this                    

11  calculation results in a retirement allowance supplement of less            

12  than $600.00 annually, then the supplement received by the                  

13  retirant or retirement allowance beneficiary entitled to a                  

14  supplement under this section shall be $600.00 annually.                    

15      (4) The increase in retirement allowance under this section                 

16  shall be included in the basis upon which future adjustments to             

17  the retirement allowance are calculated.