STATE POLICE RETIREMENT INCREASES S.B. 198 (S-1): FLOOR ANALYSIS
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Senate Bill 198 (Substitute S-1 as reported) Sponsor: Senator Jon Cisky
Committee: Appropriations
The bill would amend the State Police Retirement Act (Public Act 182 of 1986) to do the following beginning October 1, 1995:
-- Provide that a retirant allowance payable to a retirant or a retirant allowance beneficiary whose allowance represents 25 years of service, including military buy-out time, and those receiving duty related disability or duty related death benefits, would receive a total retirement allowance of not less than $10,800 per year.
-- Provide that the retirement allowance of a retirant or retirant allowance beneficiary who has been retired for 12 months, be increased each October 1, by 2% (up to a $500 per year maximum) for those not already benefiting from such an annual increase.
-- Provide that a retirement allowance payable to a retirant or retirant allowance beneficiary whose effective date of retirement was before October 1, 1986, and represents 25 years of service, including military buy-out time, and those receiving duty related disability or duty related death benefits, would be supplemented by 10%. The recalculated allowance would be the basis upon which all future adjustments to the retirement allowance are calculated.
MCL 38.1640 & 38.1640a
The annual fiscal impact upon the State Police budget of raising the minimum yearly retirement payout for 25-year veterans from $6,000 to $10,800, providing a permanent 2% COLA for all retirees of the State Police Retirement System, providing a 10% increase for pre-1986 retirants, is estimated at $1.9 million in GF/GP funds and is summarized in the table below. The percentages shown in the table are the increases in the FY 1995-96 contribution rates and are the percentages of payroll that would be required to fund the provisions in the bill, independently and taken together.
Date Completed: 12-12-95 Fiscal Analyst: B. Baker & J. Carrasco
floor\sb198
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.