HOUSE BILL No. 5458 January 14, 1998, Introduced by Rep. Brewer and referred to the Committee on Public Retirement. A bill to amend 1943 PA 240, entitled "State employees' retirement act," by amending sections 21, 22, 23, 24, 25, 27, 33, and 34 (MCL 38.21, 38.22, 38.23, 38.24, 38.25, 38.27, 38.33, and 38.34), sec- tion 22 as amended by 1987 PA 57, sections 23 and 27 as amended by 1987 PA 241, and section 25 as amended by 1986 PA 1, and by adding section 35. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 21. (1)Subject to the provisions of sections 33 and234, upon the application of a member, or his department head, or3the state personnel director, a member who becomes totally inca-4pacitated for duty in the service of the state of Michigan with-5out willful negligence on his part, by reason of a personal6injury or disease, which the retirement board finds to have7occurred as the natural and proximate result of the said member's00734'97 * KKR 2 1actual performance of duty in the service of the state, shall be2retired: Provided, The medical advisor after a medical examina-3tion of said member shall certify in writing that said member is4mentally or physically totally incapacitated for the further per-5formance of duty in the service of the state, and that such inca-6pacity will probably be permanent, and that said member should be7retired: And provided further, That the retirement board concurs8in the recommendation of the medical advisor.A MEMBER WHO 9 BECOMES TOTALLY INCAPACITATED FOR THE EMPLOYMENT THAT THE MEMBER 10 WAS PERFORMING IMMEDIATELY BEFORE TERMINATING THAT EMPLOYMENT 11 BECAUSE OF THE INCAPACITY, OR FOR THE EMPLOYMENT FOR WHICH THE 12 MEMBER IS QUALIFIED BY REASON OF TRAINING OR EXPERIENCE OR BOTH, 13 IS ENTITLED TO RECEIVE A DISABILITY RETIREMENT ALLOWANCE CALCU- 14 LATED UNDER SECTION 22 OR 23, WHICHEVER APPLIES, IF THE RETIRE- 15 MENT BOARD DETERMINES THAT ALL OF THE FOLLOWING REQUIREMENTS ARE 16 MET: 17 (A) THE MEMBER IS NOT OTHERWISE ELIGIBLE TO RETIRE AND IMME- 18 DIATELY RECEIVE AN UNREDUCED RETIREMENT ALLOWANCE UNDER THIS 19 ACT. 20 (B) THE MEMBER'S INCAPACITY OCCURRED AS THE RESULT OF A PER- 21 SONAL INJURY OR DISEASE. 22 (C) EXCEPT AS PROVIDED IN SECTION 35, THE INCAPACITY IS 23 LIKELY TO BE PERMANENT. 24 (D) THE PERSONAL INJURY OR DISEASE RESULTING IN THE INCAPAC- 25 ITY MEETS BOTH OF THE FOLLOWING REQUIREMENTS: 26 (i) THE PERSONAL INJURY OR DISEASE OCCURRED AS THE NATURAL 27 AND PROXIMATE RESULT OF THE MEMBER'S ACTUAL PERFORMANCE OF DUTY 00734'97 * 3 1 IN THE EMPLOYMENT THAT QUALIFIES HIM OR HER FOR MEMBERSHIP IN THE 2 RETIREMENT SYSTEM. 3 (ii) THE PERSONAL INJURY OR DISEASE DID NOT OCCUR AS A 4 RESULT OF THE WILLFUL NEGLIGENCE OF THE MEMBER. 5 (E) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, NOT 6 LATER THAN 1 YEAR AFTER TERMINATION OF THE MEMBER'S EMPLOYMENT 7 BECAUSE OF THE INCAPACITY, THE MEMBER, THE MEMBER'S PERSONAL REP- 8 RESENTATIVE OR GUARDIAN, THE MEMBER'S DEPARTMENT HEAD, OR THE 9 STATE PERSONNEL DIRECTOR FILES AN APPLICATION FOR A DISABILITY 10 RETIREMENT ALLOWANCE FOR THAT MEMBER WITH THE RETIREMENT BOARD. 11 UPON APPEAL TO THE RETIREMENT BOARD, THE RETIREMENT BOARD, FOR 12 GOOD CAUSE, MAY ACCEPT AN APPLICATION FOR A DISABILITY RETIREMENT 13 ALLOWANCE NOT LATER THAN 2 YEARS AFTER TERMINATION OF THE 14 MEMBER'S EMPLOYMENT BECAUSE OF THE INCAPACITY. 15 (2) BEFORE A FINAL DETERMINATION IS MADE THAT A DISABILITY 16 RETIREMENT ALLOWANCE IS PAYABLE UNDER SUBSECTION (1), THE RETIRE- 17 MENT BOARD SHALL REQUIRE A WRITTEN MEDICAL EVALUATION OF THE 18 APPLICANT PREPARED BY THE MEDICAL ADVISOR. THE RETIREMENT BOARD 19 SHALL REQUIRE THE APPLICANT TO SUBMIT SUFFICIENT MEDICAL OR OTHER 20 EVIDENCE TO ENABLE THE MEDICAL ADVISOR TO COMPLETE THE 21 EVALUATION. 22 (3) A MEMBER ENTITLED TO RECEIVE A DISABILITY RETIREMENT 23 ALLOWANCE PURSUANT TO THIS SECTION MAY ELECT AN OPTION UNDER 24 SECTION 31(1). 25 Sec. 22. Upon retirement for disability,as provided in 26 section 21, a member whohas attained ageIS 60 YEARS OF AGE OR 27 OLDER shall receive a service retirement allowanceas provided00734'97 * 4 1for inCALCULATED UNDER section 20.Notwithstanding that he or2she mayHOWEVER, IF THE MEMBER DOES not have10THE MINIMUM 3 NUMBER OF years of credited service NEEDED TO VEST IN THE RETIRE- 4 MENT SYSTEM, he or she shall be credited with10 yearsTHE 5 AMOUNT of service NECESSARY TO REACH THAT AMOUNT OF CREDITED 6 SERVICE. HOWEVER, FOR AN INDIVIDUAL WHO WAS A MEMBER ON THE 7 EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS SENTENCE, 8 THE DISABILITY RETIREMENT ALLOWANCE PAYABLE UNDER THIS SECTION ON 9 AND AFTER THAT DATE SHALL NOT BE LESS THAN THE DISABILITY RETIRE- 10 MENT ALLOWANCE THAT WOULD HAVE BEEN PAYABLE UNDER THIS SECTION 11 BEFORE THAT DATE. 12 Sec. 23.Upon retirement for disability, as provided for13in section 21, a member who has not attained age 60 years shall14receive the following benefits, subject to the provisions of sec-15tions 33 and 34:16(a) A disability retirement allowance of 2/3 of the17retirant's final average compensation, the retirement allowance18to begin as of date of the retirant's disability, but not more19than 6 months before the date the retirant's application for dis-20ability retirement was filed with the retirement board, and not21before the date the retirant's name last appeared on a state pay-22roll with pay, whichever is later, and to continue to the attain-23ment of age 60 years or recovery or death, whichever event shall24first occur. The disability retirement allowance payable to a25disability retirant shall not exceed $6,000.00 per annum, nor be26more than an amount which when added to the statutory worker's27compensation benefits applicable in the retirant's case shall00734'97 * 5 1exceed the retirant's final compensation. The increase in the2maximum amount payable under this subdivision as provided by this31987 amendatory act shall be payable to retirants on the pension4payroll as of July 1, 1987.5 (1) UPON RETIREMENT FOR DISABILITY AS PROVIDED IN SECTION 6 21, A MEMBER WHO IS LESS THAN 60 YEARS OLD SHALL RECEIVE A DIS- 7 ABILITY RETIREMENT ALLOWANCE CALCULATED UNDER SECTION 20(1). 8 HOWEVER, IF THE MEMBER DOES NOT HAVE THE MINIMUM NUMBER OF YEARS 9 OF CREDITED SERVICE NEEDED TO VEST IN THE RETIREMENT SYSTEM, HE 10 OR SHE SHALL BE CREDITED WITH THE AMOUNT OF SERVICE NECESSARY TO 11 REACH THAT AMOUNT OF CREDITED SERVICE. A DISABILITY RETIREMENT 12 ALLOWANCE PAYABLE UNDER THIS SUBSECTION IS PAYABLE BEGINNING ON 13 THE FIRST DAY OF THE MONTH FOLLOWING THE DATE THE MEMBER BECOMES 14 TOTALLY INCAPACITATED FOR THE EMPLOYMENT THAT QUALIFIED HIM OR 15 HER FOR MEMBERSHIP IN THE RETIREMENT SYSTEM. HOWEVER, A DISABIL- 16 ITY RETIREMENT ALLOWANCE PAYABLE UNDER THIS SUBSECTION SHALL NOT 17 BE PAID BEFORE THE FIRST DAY OF THE MONTH FOLLOWING THE LATER OF 18 THE FOLLOWING: 19 (A) SIX MONTHS BEFORE THE DATE THE APPLICATION FOR A DIS- 20 ABILITY RETIREMENT ALLOWANCE WAS FILED WITH THE RETIREMENT BOARD 21 UNDER SECTION 21. 22 (B) THE DATE THE DISABILITY RETIRANT'S NAME LAST APPEARED ON 23 THE PAYROLL WITH PAY FOR THAT EMPLOYMENT. 24 (2)(b)Upon attaining age 60 years,or July 1, 1987,25whichever is later, theA disability retirant UNDER 26 SUBSECTION (1) shall receive a retirement allowancecomputed27according toCALCULATED UNDER section 20.In computing the00734'97 * 6 1 FOR THE PURPOSE OF CALCULATING THAT retirant's retirement 2 allowance, the retirant shall be given membership service credit 3 for the period during which the retirant was receiving the dis- 4 ability retirement allowance provided for insubdivision (a)5 SUBSECTION (1). If the computation results in a retirement 6 allowance less than the disability retirement allowance provided 7 insubdivision (a)SUBSECTION (1), the retirant shall receive a 8 retirement allowance equal to the disability retirement 9 allowance.Upon attaining age 60 years or July 1, 1987, which-10ever is later, the retirant may elect an option provided for in11section 31(1).12 (3)(c)During the period a disability retirant is receiv- 13 ing a disability retirement allowance, as provided for in sub-14division (a)UNDER SUBSECTION (1), the DISABILITY retirant's 15 contributions to the employees' savings fund shall be suspended 16 and the balance in the fund, standing to the DISABILITY 17 retirant's credit as of the date the disability retirement allow- 18 ance begins, shall remain in the savings fund and shall be accu- 19 mulated at regular interest. Upon attaining age 60 years,or20July 1, 1987, whichever is later,the DISABILITY retirant's 21 accumulated contributions shall be transferred from the 22 employees' savings fund to the pension reserve fund. If the dis- 23 ability retirant should die before attaining age 60 years, the 24 accumulated contributions standing to the DISABILITY retirant's 25 credit in the employees' savings fund shall be paid to the person 26 or persons the retirant nominated by written designation duly 27 executed and filed with the retirement board, or if there is not 00734'97 * 7 1 a designated person or persons surviving, then to the retirant's 2 legal representative OR ESTATE. 3 (4) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, IF A 4 DISABILITY RETIRANT ELECTS TO RECEIVE A REGULAR DISABILITY 5 RETIREMENT ALLOWANCE UNDER SECTION 31, THE DISABILITY RETIREMENT 6 ALLOWANCE PAYABLE TO A DISABILITY RETIRANT UNDER THIS SECTION 7 SHALL NOT BE LESS THAN THE DISABILITY RETIREMENT ALLOWANCE THAT 8 WOULD HAVE BEEN PAYABLE UNDER THIS SECTION BEFORE THE EFFECTIVE 9 DATE OF THE AMENDATORY ACT THAT ADDED THIS SUBSECTION. EXCEPT AS 10 OTHERWISE PROVIDED IN THIS SUBSECTION, IF A DISABILITY RETIRANT 11 ELECTS TO RECEIVE A REDUCED DISABILITY RETIREMENT ALLOWANCE UNDER 12 A PAYMENT OPTION UNDER SECTION 31, THE DISABILITY RETIREMENT 13 ALLOWANCE PAYABLE TO A DISABILITY RETIRANT UNDER THIS SECTION 14 SHALL NOT BE LESS THAN THE ACTUARIAL EQUIVALENT AT THE TIME OF 15 THE ELECTION OF THE DISABILITY RETIREMENT ALLOWANCE THAT WOULD 16 HAVE BEEN PAYABLE UNDER THIS SECTION BEFORE THE EFFECTIVE DATE OF 17 THE AMENDATORY ACT THAT ADDED THIS SUBSECTION. A DISABILITY 18 RETIREMENT ALLOWANCE FIRST PAYABLE TO A DISABILITY RETIRANT UNDER 19 THIS SECTION SHALL NOT BE MORE THAN AN AMOUNT THAT WHEN ADDED TO 20 THE STATUTORY WORKER'S DISABILITY COMPENSATION BENEFITS PAYABLE 21 TO THE DISABILITY RETIRANT EXCEEDS THE DISABILITY RETIRANT'S 22 FINAL COMPENSATION. 23 (5) THE RECEIPT OF A DISABILITY RETIREMENT ALLOWANCE UNDER 24 THIS SECTION IS SUBJECT TO SECTIONS 33, 34, AND 35. 25 Sec. 24. (1)Subject to the provisions of sections 33 and2634, upon application of a member, or his department head, or the27state personnel director, a member who has been a state employee00734'97 * 8 1at least 10 years becomes totally and permanently incapacitated2for duty as the result of causes occurring not in the performance3of duty to the state, may be retired by the retirement board:4Provided, The medical advisor after a medical examination of such5member, shall certify that such member is mentally or physically6incapacitated for the further performance of duty, and such inca-7pacity is likely to be permanent and that such member should be8retired.A MEMBER WHO BECOMES TOTALLY INCAPACITATED FOR THE 9 EMPLOYMENT THAT THE MEMBER WAS PERFORMING IMMEDIATELY BEFORE TER- 10 MINATING THAT EMPLOYMENT BECAUSE OF THE INCAPACITY, OR FOR THE 11 EMPLOYMENT FOR WHICH THE MEMBER IS QUALIFIED BY REASON OF TRAIN- 12 ING OR EXPERIENCE OR BOTH, IS ENTITLED TO RECEIVE A DISABILITY 13 RETIREMENT ALLOWANCE PURSUANT TO SECTION 25 IF THE RETIREMENT 14 BOARD DETERMINES THAT ALL OF THE FOLLOWING REQUIREMENTS ARE MET: 15 (A) THE MEMBER IS NOT OTHERWISE ELIGIBLE TO RETIRE AND IMME- 16 DIATELY RECEIVE AN UNREDUCED RETIREMENT ALLOWANCE UNDER THIS ACT, 17 BUT HAS ACCRUED AT LEAST THE MINIMUM NUMBER OF YEARS OF CREDITED 18 SERVICE NEEDED TO VEST IN THE RETIREMENT SYSTEM. 19 (B) THE MEMBER'S INCAPACITY OCCURRED AS THE RESULT OF A PER- 20 SONAL INJURY OR DISEASE. 21 (C) EXCEPT AS PROVIDED IN SECTION 35, THE INCAPACITY IS 22 LIKELY TO BE PERMANENT. 23 (D) THE PERSONAL INJURY OR DISEASE RESULTING IN THE INCAPAC- 24 ITY DID NOT OCCUR IN THE PERFORMANCE OF DUTY IN THE EMPLOYMENT 25 THAT QUALIFIED HIM OR HER FOR MEMBERSHIP IN THE RETIREMENT 26 SYSTEM. 00734'97 * 9 1 (E) THE PERSONAL INJURY OR DISEASE RESULTING IN THE 2 INCAPACITY WAS NOT THE RESULT OF THE WILLFUL NEGLIGENCE OF THE 3 MEMBER. 4 (F) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, NOT 5 LATER THAN 1 YEAR AFTER TERMINATION OF THE MEMBER'S EMPLOYMENT 6 BECAUSE OF THE INCAPACITY, THE MEMBER, THE MEMBER'S PERSONAL REP- 7 RESENTATIVE OR GUARDIAN, THE MEMBER'S DEPARTMENT HEAD, OR THE 8 STATE PERSONNEL DIRECTOR FILES AN APPLICATION FOR A DISABILITY 9 RETIREMENT ALLOWANCE FOR THAT MEMBER WITH THE RETIREMENT BOARD. 10 UPON APPEAL TO THE RETIREMENT BOARD, THE RETIREMENT BOARD, FOR 11 GOOD CAUSE, MAY ACCEPT AN APPLICATION FOR A DISABILITY RETIREMENT 12 ALLOWANCE NOT LATER THAN 2 YEARS AFTER TERMINATION OF THE 13 MEMBER'S EMPLOYMENT BECAUSE OF THE INCAPACITY. 14 (2) BEFORE A FINAL DETERMINATION IS MADE THAT A DISABILITY 15 RETIREMENT ALLOWANCE IS PAYABLE UNDER SUBSECTION (1), THE RETIRE- 16 MENT BOARD SHALL REQUIRE A WRITTEN MEDICAL EVALUATION OF THE 17 APPLICANT PREPARED BY THE MEDICAL ADVISOR. THE RETIREMENT BOARD 18 SHALL REQUIRE THE APPLICANT TO SUBMIT SUFFICIENT MEDICAL OR OTHER 19 EVIDENCE TO ENABLE THE MEDICAL ADVISOR TO COMPLETE THE 20 EVALUATION. 21 (3) A MEMBER ENTITLED TO RECEIVE A DISABILITY RETIREMENT 22 ALLOWANCE PURSUANT TO THIS SECTION MAY ELECT AN OPTION UNDER 23 SECTION 31(1). 24 (4) UPON ATTAINING AGE 60 YEARS, A DISABILITY RETIRANT UNDER 25 SUBSECTION (1) IS CONSIDERED RETIRED UNDER THE PROVISIONS OF SEC- 26 TION 19(1) AND SHALL RECEIVE A RETIREMENT ALLOWANCE CALCULATED 27 UNDER SECTION 20. 00734'97 * 10 1 Sec. 25. (1) Upon retirement for disability,as provided 2 in section 24, a member shall receive a retirement allowance 3computed in accordance withCALCULATED UNDER section 20(1). 4 (2) THE DISABILITY RETIREMENT ALLOWANCE PAYABLE UNDER 5 SUBSECTION (1) IS PAYABLE BEGINNING ON THE FIRST DAY OF THE MONTH 6 FOLLOWING THE LATER OF EITHER OF THE FOLLOWING: 7 (A) THE DATE THE APPLICATION FOR A DISABILITY RETIREMENT 8 ALLOWANCE WAS FILED WITH THE RETIREMENT BOARD UNDER SECTION 24. 9 (B) THE DATE THE DISABILITY RETIRANT'S NAME LAST APPEARED ON 10 THE PAYROLL WITH PAY FOR THE EMPLOYMENT THAT QUALIFIED HIM OR HER 11 FOR MEMBERSHIP IN THE RETIREMENT SYSTEM. 12 (3)The retirement allowance or pension provided shall not13be less than $600.00 per annum. Upon retirement, the member may14elect an option provided for in section 31(1).THE RECEIPT OF A 15 DISABILITY RETIREMENT ALLOWANCE UNDER THIS SECTION IS SUBJECT TO 16 SECTIONS 33, 34, AND 35. 17 Sec. 27. (1)IfEXCEPT AS PROVIDED IN SUBSECTIONS (3), 18 (4), AND (5), IF a member dies as a result of a personal injury 19 or disease arising out of and in the course of his or her employ- 20 ment,with the state, or a disability retirant who retired under21section 21 dies prior to becoming age 60 and within 3 years after22the member's disability retirement from the same causes for which23he or she was retired, and such death or illness or injuries24 WHICH EMPLOYMENT QUALIFIED HIM OR HER FOR MEMBERSHIP IN THE 25 RETIREMENT SYSTEM, AND THE PERSONAL INJURY OR DISEASE resulting 26 in deathareIS found by the retirement board to have been the 27 sole and exclusive result of THAT employment,with the state,00734'97 * 11 1 theapplicable benefits provided in subsections (2), (3), (4),2and (5) shall be paid, subject to subsection (6)SURVIVING 3 SPOUSE SHALL RECEIVE A RETIREMENT ALLOWANCE CALCULATED AS IF THE 4 DECEASED MEMBER HAD RETIRED EFFECTIVE THE DAY BEFORE THE DATE OF 5 DEATH, ELECTED OPTION A UNDER SECTION 31(1), AND NOMINATED HIS OR 6 HER SPOUSE AS RETIREMENT ALLOWANCE BENEFICIARY. THE RETIREMENT 7 ALLOWANCE SHALL BE CALCULATED BASED UPON THE AMOUNT OF THE 8 DECEASED MEMBER'S CREDITED SERVICE. HOWEVER, IF THE DECEASED 9 MEMBER DOES NOT HAVE THE MINIMUM NUMBER OF YEARS OF CREDITED 10 SERVICE NEEDED TO VEST IN THE RETIREMENT SYSTEM, HE OR SHE SHALL 11 BE CREDITED WITH THE AMOUNT OF SERVICE NECESSARY TO REACH THAT 12 AMOUNT OF CREDITED SERVICE. 13 (2)The accumulated contributions standing to the member's14account in the employees' savings fund shall be paid to such15person or persons as the member has nominated by written designa-16tion duly executed and filed with the retirement board, or if17there are no such designated person or persons surviving, then to18the member's legal representative.THE RETIREMENT ALLOWANCE PAY- 19 ABLE TO A SURVIVING SPOUSE UNDER THIS SECTION ON AND AFTER THE 20 EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS SENTENCE 21 SHALL NOT BE LESS THAN THE RETIREMENT ALLOWANCE THAT WOULD HAVE 22 BEEN PAYABLE UNDER THIS SECTION BEFORE THAT DATE. THE FIRST 23 RETIREMENT ALLOWANCE PAYABLE TO A SURVIVING SPOUSE UNDER SUBSEC- 24 TION (1) SHALL NOT BE MORE THAN AN AMOUNT THAT WHEN ADDED TO THE 25 STATUTORY WORKER'S DISABILITY COMPENSATION BENEFITS PAYABLE TO 26 THE SURVIVING SPOUSE OF THE DECEASED MEMBER EQUALS THE DECEASED 27 MEMBER'S FINAL COMPENSATION. 00734'97 * 12 1 (3)A retirement allowance of 1/3 of the final compensation2of the deceased person shall be paid to the surviving spouse to3whom the deceased person was married at the time he or she last4terminated employment with the state. If a child or children5under the age of 18 years also survives the deceased person, each6such child shall receive an allowance of an equal share of 1/4 of7the deceased person's final compensation. Upon the marriage,8death, or attainment of age 18 years of any such child, there9shall be a redistribution by the retirement board to the deceased10person's remaining children under age 18 years.IF THE REQUIRE- 11 MENTS OF SUBSECTION (1) ARE MET BUT THE DECEASED MEMBER IS SUR- 12 VIVED BY A SPOUSE AND A CHILD OR CHILDREN UNDER 18 YEARS OF AGE, 13 THEN THE RETIREMENT ALLOWANCE CALCULATED UNDER SUBSECTIONS (1) 14 AND (2) SHALL BE PAYABLE AS FOLLOWS: 15 (A) ONE HALF TO THE SURVIVING SPOUSE. 16 (B) ONE HALF TO THE SURVIVING CHILD OR CHILDREN UNDER 18 17 YEARS OF AGE, IN EQUAL SHARES. THE RETIREMENT ALLOWANCE PAYABLE 18 TO A SURVIVING CHILD UNDER THIS SUBSECTION SHALL TERMINATE UPON 19 THAT CHILD'S MARRIAGE, DEATH, OR BECOMING 18 YEARS OF AGE, WHICH- 20 EVER OCCURS FIRST. THAT CHILD'S SHARE OF THE TERMINATED RETIRE- 21 MENT ALLOWANCE SHALL BE REDISTRIBUTED AMONG THE REMAINING CHIL- 22 DREN UNDER 18 YEARS OF AGE, IF ANY. WHEN THERE ARE NO SURVIVING 23 CHILDREN ENTITLED TO A SHARE OF THE RETIREMENT ALLOWANCE UNDER 24 THIS SUBSECTION, THE CHILDREN'S SHARE SHALL REVERT TO THE SURVIV- 25 ING SPOUSE. 26 (4)If there is no surviving spouse or if the surviving27spouse dies before the youngest surviving child of the deceased00734'97 * 13 1person reaches the age of 18 years, then each such child under2age 18 shall each receive an allowance equal to 1/4 of the3deceased person's final compensation, but the total so paid in4any year to the children of a deceased person shall not exceed51/2 of his or her final compensation. If there are more than 26such surviving children under age 18 years, each such child shall7receive an allowance of an equal share of 1/2 of the deceased8person's final compensation. Upon the marriage, death, or9attainment of age 18 years of any such child, the child's allow-10ance shall terminate and there shall be a redistribution by the11retirement board to any remaining eligible children of the12deceased under age 18, but a child shall not receive an allowance13more than 1/4 of the deceased person's final compensation.IF 14 THE REQUIREMENTS OF SUBSECTION (1) ARE MET AND THE DECEASED 15 MEMBER IS NOT SURVIVED BY A SPOUSE BUT IS SURVIVED BY A CHILD OR 16 CHILDREN UNDER 18 YEARS OF AGE, THEN THE RETIREMENT ALLOWANCE 17 CALCULATED UNDER SUBSECTIONS (1) AND (2) SHALL BE PAID TO THE 18 SURVIVING CHILD OR CHILDREN IN EQUAL SHARES. THE RETIREMENT 19 ALLOWANCE PAYABLE TO A SURVIVING CHILD UNDER THIS SUBSECTION 20 SHALL TERMINATE UPON THAT CHILD'S MARRIAGE, DEATH, OR BECOMING 18 21 YEARS OF AGE, WHICHEVER OCCURS FIRST. THAT CHILD'S SHARE OF THE 22 TERMINATED RETIREMENT ALLOWANCE SHALL BE REDISTRIBUTED AMONG THE 23 REMAINING CHILDREN UNDER 18 YEARS OF AGE, IF ANY. 24 (5)If there is neither a spouse nor a child under age 1825years surviving the deceased person, then there shall be paid to26each parent of the deceased person whom the retirement board27after investigation determines to have been actually dependent00734'97 * 14 1upon the deceased person through absence of earning power due to2disability, an allowance of 1/6 of the deceased person's final3compensation.IF THE REQUIREMENTS OF SUBSECTION (1) ARE MET AND 4 THE DECEASED MEMBER IS NOT SURVIVED BY A SPOUSE OR A CHILD OR 5 CHILDREN UNDER 18 YEARS OF AGE BUT IS SURVIVED BY A PARENT OR 6 PARENTS WHO WERE DEPENDENT UPON THE DECEASED MEMBER FOR 50% OR 7 MORE OF SUPPORT, THEN THE RETIREMENT ALLOWANCE CALCULATED UNDER 8 SUBSECTIONS (1) AND (2) SHALL BE PAID TO THE SURVIVING PARENT OR 9 PARENTS IN EQUAL SHARES. THE RETIREMENT ALLOWANCE PAYABLE TO A 10 SURVIVING PARENT UNDER THIS SUBSECTION SHALL TERMINATE UPON THAT 11 PARENT'S DEATH. 12 (6)The total of the retirement allowances payable under13subsections (3), (4), and (5) on account of the death of a member14or retirant shall not exceed $2,400.00 per annum, nor an amount15which, when added to the statutory worker's compensation benefit16to which the dependents of the member or retirant are entitled,17exceeds his or her final compensation.A RETIREMENT ALLOWANCE 18 PAYABLE UNDER THIS SECTION TO A SURVIVING SPOUSE BEFORE THE 19 EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS SENTENCE 20 SHALL NOT BE LESS THAN THE RETIREMENT ALLOWANCE THAT THE SPOUSE 21 WAS ENTITLED TO UNDER THIS SECTION BEFORE THAT DATE OR THE 22 RETIREMENT ALLOWANCE THAT IS PAYABLE UNDER THIS SECTION AFTER 23 THAT DATE, WHICHEVER IS GREATER. A PORTION OF A RETIREMENT 24 ALLOWANCE PAYABLE UNDER THIS SECTION TO SURVIVING CHILDREN OR 25 PARENTS BEFORE THE EFFECTIVE DATE OF THE AMENDATORY ACT THAT 26 ADDED THIS SENTENCE SHALL NOT BE LESS THAN THAT PORTION OF THE 27 RETIREMENT ALLOWANCE THAT THAT CHILD OR PARENT WAS ENTITLED TO 00734'97 * 15 1 UNDER THIS SECTION BEFORE THAT DATE OR THE PORTION OF THE 2 RETIREMENT ALLOWANCE THAT IS PAYABLE UNDER THIS SECTION AFTER 3 THAT DATE, WHICHEVER IS GREATER. 4 Sec. 33. (1)(a)Once each year during the first56 5 years following the retirement of a memberon a disability6retirement allowance, and at least once in every 3-year period7thereafterUNDER SECTION 21 OR 24, the retirement board may, and 8 upon the retirant's application shall, requireanyA disability 9 retirant,whohas not attained ageIS UNDER 60 years,OF 10 AGE toundergo a medical examination; such examination to be11made by or under the direction of the medical advisor at the12place of residence of said retirant, or other place mutually13agreed upon. Should any disability retirant, who has not14attained age 60 years, refuse to submit to such medical examina-15tion in any such period, his disability retirement allowance may16be discontinued until his withdrawal of such refusal, and should17such refusal continue for 1 year, all his rights in and to his18disability retirement allowance may be revoked by the retirement19board. If upon such medical examination of a disability retir-20ant, the medical advisor reports and his report is concurred in21by the retirement board, that the disability retirant is physi-22cally able and capable of resuming employment, he shall be23restored to active service with the state and his disability24retirement allowance shall cease.SUBMIT TO A MEDICAL EVALUATION 25 DESCRIBED IN SECTION 21(2) OR A VOCATIONAL EVALUATION DESCRIBED 26 IN SECTION 35(1), OR BOTH. THE RETIREMENT BOARD SHALL MAKE 27 REASONABLE ACCOMMODATIONS REGARDING THE LOCATION AND METHOD OF 00734'97 * 16 1 THE MEDICAL OR VOCATIONAL EVALUATION TAKING INTO CONSIDERATION 2 THE LOCATION AND HEALTH OF THE DISABILITY RETIRANT. THE RETIRE- 3 MENT BOARD MAY RECOMMEND THAT THE DISABILITY RETIRANT PARTICIPATE 4 IN A PROGRAM OF VOCATIONAL REHABILITATION IN THE MANNER PROVIDED 5 IN SECTION 35. IF A DISABILITY RETIRANT WHO IS UNDER 60 YEARS OF 6 AGE REFUSES TO SUBMIT TO THE EVALUATION OR EVALUATIONS REQUIRED 7 BY THE RETIREMENT BOARD UNDER THIS SECTION, HIS OR HER DISABILITY 8 RETIREMENT ALLOWANCE MAY BE DISCONTINUED UNTIL THE DISABILITY 9 RETIRANT SUBMITS TO THE REQUIRED EVALUATION OR EVALUATIONS. IF 10 THE REFUSAL CONTINUES FOR 1 YEAR, ALL OF THE DISABILITY 11 RETIRANT'S RIGHTS IN AND TO A DISABILITY RETIREMENT ALLOWANCE MAY 12 BE REVOKED BY THE RETIREMENT BOARD. 13 (2) THE RETIREMENT BOARD MAY PAY FROM THE FUNDS OF THE 14 RETIREMENT SYSTEM THE COST OF PARTICIPATION BY A DISABILITY 15 RETIRANT IN A PROGRAM OF VOCATIONAL REHABILITATION OR A RETURN TO 16 WORK PROGRAM ADMINISTERED BY THIS STATE IF THE AMOUNT PAYABLE FOR 17 PARTICIPATION IN THE PROGRAM PLUS THE AMOUNT OF A DIFFERENTIAL 18 PAYMENT PAYABLE UNDER SECTION 35(5), IF ANY, IS LESS THAN THE 19 PROJECTED BENEFIT TOTAL. AS USED IN THIS SUBSECTION, "PROJECTED 20 BENEFIT TOTAL" MEANS THE DIFFERENCE BETWEEN 60 AND THE DISABILITY 21 RETIRANT'S AGE AT HIS OR HER PROJECTED REEMPLOYMENT DATE MULTI- 22 PLIED BY THE ANNUAL DISABILITY BENEFIT PAYABLE TO THE DISABILITY 23 RETIRANT. 24 (3) IF THE RETIREMENT BOARD DETERMINES THAT A DISABILITY 25 RETIRANT IS NO LONGER INCAPACITATED FOR THE EMPLOYMENT THAT THE 26 DISABILITY RETIRANT WAS PERFORMING IMMEDIATELY BEFORE TERMINATING 27 THAT EMPLOYMENT BECAUSE OF THE INCAPACITY, OR FOR THE EMPLOYMENT 00734'97 * 17 1 FOR WHICH THE DISABILITY RETIRANT IS QUALIFIED BY REASON OF 2 TRAINING OR EXPERIENCE OR BOTH, THE RETIREMENT BOARD SHALL RECOM- 3 MEND THAT THE DISABILITY RETIRANT BE REEMPLOYED. THE RETIREMENT 4 SYSTEM SHALL CONTINUE TO PAY A DISABILITY RETIREMENT ALLOWANCE TO 5 A DISABILITY RETIRANT UNTIL HE OR SHE IS REEMPLOYED, SUBJECT TO 6 SUBSECTION (4). 7 (4)(b) ShouldIF the secretaryreport and certify8 REPORTS AND CERTIFIES to the retirement board thatsuchA dis- 9 abilitybeneficiaryRETIRANT is engaged inagainful occupa- 10 tion paying more than the difference between his OR HER disabil- 11 ity retirement allowance and his OR HER ADJUSTED final compensa- 12 tion, andshouldIF the retirement boardconcur in such13 CONCURS IN THE report, then the amount ofhisTHE DISABILITY 14 retirement allowance shall be reduced to an amountwhichTHAT 15 together with the amount earned byhim shall equalTHE DISABIL- 16 ITY RETIRANT EQUALS his OR HER ADJUSTED final compensation. 17ShouldIF the earnings ofsuchTHE disability retirantbe18later changedCHANGE, the amount of his OR HER retirement allow- 19 ance shallbe further modified in like mannerAGAIN BE ADJUSTED 20 UNDER THIS SECTION. AS USED IN THIS SUBSECTION, "ADJUSTED FINAL 21 COMPENSATION" MEANS THE DISABILITY RETIRANT'S FINAL COMPENSATION 22 PLUS A 1-STEP INCREASE AT THAT CLASSIFICATION, IF ANY, WHICH 23 AMOUNT IS THEN INCREASED BY 3% COMPOUNDED ANNUALLY FOR EACH YEAR 24 OR MAJOR PORTION OF A YEAR THAT EXPIRES AFTER THE DISABILITY 25 RETIREMENT EFFECTIVE DATE AND THE DATE OF THE CALCULATION UNDER 26 THIS SUBSECTION. 00734'97 * 18 1 Sec. 34. A disability retirant who has been orshall be2 IS reinstated in active service, as provided in section 33,3shall fromUNDER SECTION 33 OR 35 AGAIN BECOMES A MEMBER BEGIN- 4 NING ON the date ofsuchTHE reinstatement.again become a5member of the retirement system.Upon reinstatement ofsuch6 THE disability retirant to active service, any balancehe may7haveSTANDING TO HIS OR HER CREDIT in the pension reserve fund 8 at the time ofsuchTHE reinstatementto active service,9 shall be transferred from the pension reserve fund to the 10 employees' savings fund and credited to his OR HER individual 11 account in the employees' savings fund. Any service, on the12basis of which his retirement allowance was computed at the time13of his retirement,CREDIT ACCRUED BY THE REINSTATED DISABILITY 14 RETIRANT BEFORE DISABILITY RETIREMENT shall be restored to full 15 force and effect, and, except in the case of retirement for 16non-dutyNONDUTY disabilityas provided inUNDER section 24, 17heTHE DISABILITY RETIRANT shall be given service credit for 18 the period of timehe was out of service due to such disability19 A DISABILITY RETIREMENT ALLOWANCE WAS PAID. 20 SEC. 35. (1) BEFORE A FINAL DETERMINATION IS MADE THAT A 21 MEMBER IS TOTALLY INCAPACITATED FOR EMPLOYMENT UNDER SECTION 21 22 OR 24 AND THAT A DISABILITY RETIREMENT ALLOWANCE IS PAYABLE UNDER 23 SECTION 23 OR 25, THE RETIREMENT BOARD MAY REQUIRE THAT A WRITTEN 24 VOCATIONAL EVALUATION OF THE DISABILITY APPLICANT BE PREPARED BY 25 A REHABILITATION AGENCY. THE EVALUATION SHALL CONTAIN ALL OF THE 26 FOLLOWING: 00734'97 * 19 1 (A) A DESCRIPTION OF THE DISABILITY APPLICANT'S VOCATIONAL 2 LIMITATIONS, IF ANY, RESULTING FROM THE PERSONAL INJURY OR 3 DISEASE THAT IS THE BASIS OF THE CLAIMED INCAPACITY. 4 (B) A DESCRIPTION OF THE DISABILITY APPLICANT'S POTENTIAL, 5 IF ANY, FOR VOCATIONAL REHABILITATION. 6 (C) A RECOMMENDATION REGARDING A PROGRAM OF VOCATIONAL REHA- 7 BILITATION OF THE DISABILITY APPLICANT, IF APPLICABLE. 8 (2) IF THE RETIREMENT BOARD DETERMINES THAT THE APPLICANT IS 9 OTHERWISE QUALIFIED FOR A DISABILITY RETIREMENT ALLOWANCE UNDER 10 SECTIONS 21 AND 23 OR SECTIONS 24 AND 25, BUT THAT THE POTENTIAL 11 EXISTS FOR THE VOCATIONAL REHABILITATION OF THE DISABILITY APPLI- 12 CANT FOR REASONABLE EMPLOYMENT COMPATIBLE WITH THE DISABILITY 13 APPLICANT'S MENTAL AND PHYSICAL CONDITION, THE DISABILITY APPLI- 14 CANT SHALL BE RETIRED UNDER THE APPLICABLE SECTIONS. THE RETIRE- 15 MENT BOARD MAY RECOMMEND THAT THE DISABILITY RETIRANT PARTICIPATE 16 IN GOOD FAITH IN A REASONABLE PROGRAM OF VOCATIONAL REHABILITA- 17 TION OR A RETURN TO WORK PROGRAM ADMINISTERED BY THIS STATE. 18 (3) THE AGENCY PROVIDING A PROGRAM OF VOCATIONAL REHABILITA- 19 TION OR RETURN TO WORK PROGRAM SHALL REPORT TO THE RETIREMENT 20 BOARD ON A PERIODIC BASIS, AS REQUIRED BY THE RETIREMENT BOARD, 21 REGARDING THE PROGRESS OF THE DISABILITY RETIRANT WHO PARTICI- 22 PATES IN A PROGRAM OF VOCATIONAL REHABILITATION OR RETURN TO WORK 23 PROGRAM UNDER SUBSECTION (2). IF THE RETIREMENT BOARD DETERMINES 24 THAT THE DISABILITY RETIRANT IS NO LONGER INCAPACITATED FOR THE 25 EMPLOYMENT THAT HE OR SHE WAS PERFORMING IMMEDIATELY BEFORE TER- 26 MINATION OF THAT EMPLOYMENT BECAUSE OF THE INCAPACITY OR FOR THE 27 EMPLOYMENT FOR WHICH HE OR SHE IS QUALIFIED BY REASON OF TRAINING 00734'97 * 20 1 OR EXPERIENCE OR BOTH, THE DISABILITY RETIRANT SHALL BE 2 CONSIDERED REHABILITATED. 3 (4) THE RETIREMENT BOARD SHALL RECOMMEND THAT THIS STATE 4 OFFER REASONABLE EMPLOYMENT TO THE DISABILITY RETIRANT WHO IS 5 CONSIDERED REHABILITATED UNDER SUBSECTION (3). THE REASONABLE 6 EMPLOYMENT OFFERED TO THE REHABILITATED DISABILITY RETIRANT SHALL 7 BE COMPATIBLE WITH THE REHABILITATED DISABILITY RETIRANT'S MENTAL 8 AND PHYSICAL CONDITION. 9 (5) A REHABILITATED DISABILITY RETIRANT WHO ACCEPTS REASON- 10 ABLE EMPLOYMENT UNDER SUBSECTION (4) IS NOT ENTITLED TO RECEIVE A 11 DISABILITY RETIREMENT ALLOWANCE UNDER SECTIONS 21 AND 23 OR SEC- 12 TIONS 24 AND 25. THE RETIREMENT SYSTEM SHALL CEASE PAYING THE 13 DISABILITY RETIREMENT ALLOWANCE TO THE REHABILITATED DISABILITY 14 RETIRANT EFFECTIVE UPON THE BEGINNING DATE OF THE ACCEPTED 15 EMPLOYMENT. HOWEVER, IF THE REHABILITATED DISABILITY RETIRANT 16 ACCEPTS THE OFFERED EMPLOYMENT, RESUMES EMPLOYMENT UNDER THIS 17 SUBSECTION, AND THE COMPENSATION PAYABLE FOR THAT EMPLOYMENT IS 18 LESS THAN THE REHABILITATED DISABILITY RETIRANT'S ADJUSTED FINAL 19 COMPENSATION, THEN THE RETIREMENT SYSTEM SHALL PAY TO THE REHA- 20 BILITATED DISABILITY RETIRANT A DIFFERENTIAL PAYMENT EQUAL TO THE 21 DIFFERENCE, IF ANY, BETWEEN THE AMOUNT OF COMPENSATION PAYABLE 22 FOR THE ACCEPTED EMPLOYMENT AND ADJUSTED FINAL COMPENSATION. 23 HOWEVER, THE DIFFERENTIAL PAYMENT SHALL NOT EXCEED AN AMOUNT CAL- 24 CULATED UNDER SECTION 23 OR 25, WHICHEVER APPLIES. AS USED IN 25 THIS SUBSECTION, "ADJUSTED FINAL COMPENSATION" MEANS THE DISABIL- 26 ITY RETIRANT'S FINAL COMPENSATION PLUS A 1-STEP INCREASE AT THAT 27 CLASSIFICATION, IF ANY, WHICH AMOUNT IS THEN INCREASED BY 3% 00734'97 * 21 1 COMPOUNDED ANNUALLY FOR EACH YEAR OR MAJOR PORTION OF A YEAR THAT 2 EXPIRES AFTER THE DISABILITY RETIREMENT EFFECTIVE DATE AND THE 3 DATE OF THE CALCULATION UNDER THIS SUBSECTION. 4 (6) IF THE RETIREMENT BOARD, WITHIN 6 MONTHS AFTER A REHA- 5 BILITATED DISABILITY RETIRANT RESUMES EMPLOYMENT UNDER SUBSECTION 6 (5), DETERMINES THAT THE REHABILITATED DISABILITY RETIRANT CON- 7 TINUES TO BE TOTALLY INCAPACITATED FOR EMPLOYMENT UNDER SECTION 8 21 OR 24, THE RETIREMENT BOARD MAY WAIVE ALL OR A PORTION OF THE 9 APPLICATION REQUIREMENTS UNDER SECTION 21 OR 24. 00734'97 * Final page. KKR