SENATE BILL No. 908 December 7, 1999, Introduced by Senators MC MANUS and STEIL and referred to the Committee on Appropriations. 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's01452'99 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 STATE EMPLOYMENT THAT THE 10 MEMBER WAS PERFORMING IMMEDIATELY BEFORE TERMINATING THAT EMPLOY- 11 MENT BECAUSE OF THE INCAPACITY, OR FOR THE STATE EMPLOYMENT FOR 12 WHICH THE MEMBER IS QUALIFIED BY REASON OF TRAINING OR EXPERIENCE 13 OR BOTH, IS ENTITLED TO RECEIVE A DISABILITY RETIREMENT ALLOWANCE 14 CALCULATED UNDER SECTION 22 OR 23, WHICHEVER APPLIES, IF THE 15 RETIREMENT BOARD DETERMINES THAT ALL OF THE FOLLOWING REQUIRE- 16 MENTS ARE MET: 17 (A) THE MEMBER DOES NOT MEET THE AGE AND SERVICE REQUIRE- 18 MENTS UNDER SECTION 19(1) OR IS NOT QUALIFIED FOR AN UNREDUCED 19 RETIREMENT ALLOWANCE UNDER SECTION 19(2). 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: 01452'99 3 1 (i) THE PERSONAL INJURY OR DISEASE OCCURRED AS THE NATURAL 2 AND PROXIMATE RESULT OF THE MEMBER'S ACTUAL PERFORMANCE OF DUTY 3 IN THE SERVICE OF THIS STATE. 4 (ii) THE PERSONAL INJURY OR DISEASE DID NOT OCCUR AS A 5 RESULT OF THE WILLFUL NEGLIGENCE OF THE MEMBER. 6 (E) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, NOT 7 LATER THAN 1 YEAR AFTER TERMINATION OF THE MEMBER'S STATE EMPLOY- 8 MENT BECAUSE OF THE INCAPACITY, THE MEMBER, THE MEMBER'S PERSONAL 9 REPRESENTATIVE OR GUARDIAN, THE MEMBER'S DEPARTMENT HEAD, OR THE 10 STATE PERSONNEL DIRECTOR FILES AN APPLICATION FOR A DISABILITY 11 RETIREMENT ALLOWANCE FOR THAT MEMBER WITH THE RETIREMENT BOARD. 12 UPON APPEAL TO THE RETIREMENT BOARD, THE RETIREMENT BOARD, FOR 13 GOOD CAUSE, MAY ACCEPT AN APPLICATION FOR A DISABILITY RETIREMENT 14 ALLOWANCE NOT LATER THAN 2 YEARS AFTER TERMINATION OF THE 15 MEMBER'S STATE EMPLOYMENT BECAUSE OF THE INCAPACITY. 16 (2) BEFORE A FINAL DETERMINATION IS MADE THAT A DISABILITY 17 RETIREMENT ALLOWANCE IS PAYABLE UNDER SUBSECTION (1), THE RETIRE- 18 MENT BOARD SHALL REQUIRE A WRITTEN MEDICAL EVALUATION OF THE 19 APPLICANT PREPARED BY THE MEDICAL ADVISOR. THE RETIREMENT BOARD 20 SHALL REQUIRE THE APPLICANT TO SUBMIT SUFFICIENT MEDICAL OR OTHER 21 EVIDENCE TO ENABLE THE MEDICAL ADVISOR TO COMPLETE THE 22 EVALUATION. 23 (3) A MEMBER ENTITLED TO RECEIVE A DISABILITY RETIREMENT 24 ALLOWANCE PURSUANT TO THIS SECTION MAY ELECT AN OPTION UNDER 25 SECTION 31(1). 26 Sec. 22. Upon retirement for disability,as provided in 27 section 21, a member whohas attained ageIS 60 YEARS OF AGE OR 01452'99 4 1 OLDER shall receive a service retirement allowanceas provided2for inCALCULATED UNDER section 20.Notwithstanding that he or3she mayHOWEVER, IF THE MEMBER DOES not have 10 years of cred- 4 ited service, he or she shall be credited with10 yearsTHE 5 AMOUNT of service NECESSARY TO REACH 10 YEARS OF CREDITED 6 SERVICE. 7 Sec. 23.Upon retirement for disability, as provided for8in section 21, a member who has not attained age 60 years shall9receive the following benefits, subject to the provisions of sec-10tions 33 and 34:11(a) A disability retirement allowance of 2/3 of the12retirant's final average compensation, the retirement allowance13to begin as of date of the retirant's disability, but not more14than 6 months before the date the retirant's application for dis-15ability retirement was filed with the retirement board, and not16before the date the retirant's name last appeared on a state pay-17roll with pay, whichever is later, and to continue to the attain-18ment of age 60 years or recovery or death, whichever event shall19first occur. The disability retirement allowance payable to a20disability retirant shall not exceed $6,000.00 per annum, nor be21more than an amount which when added to the statutory worker's22compensation benefits applicable in the retirant's case shall23exceed the retirant's final compensation. The increase in the24maximum amount payable under this subdivision as provided by this251987 amendatory act shall be payable to retirants on the pension26payroll as of July 1, 1987.01452'99 5 1 (1) UPON RETIREMENT FOR DISABILITY AS PROVIDED IN SECTION 2 21, A MEMBER WHO IS LESS THAN 60 YEARS OLD SHALL RECEIVE A 3 DISABILITY RETIREMENT ALLOWANCE CALCULATED UNDER SECTION 20(1). 4 A DISABILITY RETIREMENT ALLOWANCE PAYABLE UNDER THIS SUBSECTION 5 IS PAYABLE BEGINNING ON THE FIRST DAY OF THE MONTH FOLLOWING THE 6 DATE THE MEMBER BECOMES TOTALLY INCAPACITATED FOR STATE 7 EMPLOYMENT. HOWEVER, A DISABILITY RETIREMENT ALLOWANCE PAYABLE 8 UNDER THIS SUBSECTION SHALL NOT BE PAID BEFORE THE FIRST DAY OF 9 THE MONTH FOLLOWING THE LATER OF THE FOLLOWING: 10 (A) SIX MONTHS BEFORE THE DATE THE APPLICATION FOR A DIS- 11 ABILITY RETIREMENT ALLOWANCE WAS FILED WITH THE RETIREMENT BOARD 12 UNDER SECTION 21. 13 (B) THE DATE THE DISABILITY RETIRANT'S NAME LAST APPEARED ON 14 THE STATE PAYROLL WITH PAY. 15 (2)(b)Upon attaining age 60 years,or July 1, 1987,16whichever is later, theA disability retirant UNDER 17 SUBSECTION (1) shall receive a retirement allowancecomputed18according toCALCULATED UNDER section 20.In computing the19 FOR THE PURPOSE OF CALCULATING THAT retirant's retirement allow- 20 ance, the retirant shall be given membership service credit for 21 the period during which the retirant was receiving the disability 22 retirement allowance provided for insubdivision (a)23 SUBSECTION (1). If the computation results in a retirement 24 allowance less than the disability retirement allowance provided 25 insubdivision (a)SUBSECTION (1), the retirant shall receive a 26 retirement allowance equal to the disability retirement 27 allowance.Upon attaining age 60 years or July 1, 1987,01452'99 6 1whichever is later, the retirant may elect an option provided for2in section 31(1).3 (3)(c)During the period a disability retirant is receiv- 4 ing a disability retirement allowance, as provided for in sub-5division (a)UNDER SUBSECTION (1), the DISABILITY retirant's 6 contributions to the employees' savings fund shall be suspended 7 and the balance in the fund, standing to the DISABILITY 8 retirant's credit as of the date the disability retirement allow- 9 ance begins, shall remain in the savings fund and shall be accu- 10 mulated at regular interest. Upon attaining age 60 years,or11July 1, 1987, whichever is later,the DISABILITY retirant's 12 accumulated contributions shall be transferred from the 13 employees' savings fund to the pension reserve fund. If the dis- 14 ability retirant should die before attaining age 60 years, the 15 accumulated contributions standing to the DISABILITY retirant's 16 credit in the employees' savings fund shall be paid to the person 17 or persons the retirant nominated by written designation duly 18 executed and filed with the retirement board, or if there is not 19 a designated person or persons surviving, then to the retirant's 20 legal representative OR ESTATE. 21 (4) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, IF A 22 DISABILITY RETIRANT ELECTS TO RECEIVE A REGULAR DISABILITY 23 RETIREMENT ALLOWANCE UNDER SECTION 31, THE DISABILITY RETIREMENT 24 ALLOWANCE PAYABLE TO A DISABILITY RETIRANT UNDER THIS SECTION 25 SHALL NOT BE LESS THAN $6,000.00 PER YEAR. EXCEPT AS OTHERWISE 26 PROVIDED IN THIS SUBSECTION, IF A DISABILITY RETIRANT ELECTS TO 27 RECEIVE A REDUCED DISABILITY RETIREMENT ALLOWANCE UNDER OPTION A 01452'99 7 1 OR B UNDER SECTION 31, THE DISABILITY RETIREMENT ALLOWANCE 2 PAYABLE TO A DISABILITY RETIRANT UNDER THIS SECTION SHALL NOT BE 3 LESS THAN THE ACTUARIAL EQUIVALENT AT THE TIME OF THE ELECTION OF 4 $6,000.00 PER YEAR. A DISABILITY RETIREMENT ALLOWANCE FIRST PAY- 5 ABLE TO A DISABILITY RETIRANT UNDER THIS SECTION SHALL NOT BE 6 MORE THAN AN AMOUNT THAT WHEN ADDED TO THE STATUTORY WORKER'S 7 DISABILITY COMPENSATION BENEFITS PAYABLE TO THE DISABILITY RETIR- 8 ANT EXCEEDS THE DISABILITY RETIRANT'S FINAL COMPENSATION. 9 (5) THE RECEIPT OF A DISABILITY RETIREMENT ALLOWANCE UNDER 10 THIS SECTION IS SUBJECT TO SECTIONS 33, 34, AND 35. 11 Sec. 24. (1)Subject to the provisions of sections 33 and1234, upon application of a member, or his department head, or the13state personnel director, a member who has been a state employee14at least 10 years becomes totally and permanently incapacitated15for duty as the result of causes occurring not in the performance16of duty to the state, may be retired by the retirement board:17Provided, The medical advisor after a medical examination of such18member, shall certify that such member is mentally or physically19incapacitated for the further performance of duty, and such inca-20pacity is likely to be permanent and that such member should be21retired.A MEMBER WHO BECOMES TOTALLY INCAPACITATED FOR THE 22 STATE EMPLOYMENT THAT THE MEMBER WAS PERFORMING IMMEDIATELY 23 BEFORE TERMINATING THAT EMPLOYMENT BECAUSE OF THE INCAPACITY, OR 24 FOR THE STATE EMPLOYMENT FOR WHICH THE MEMBER IS QUALIFIED BY 25 REASON OF TRAINING OR EXPERIENCE OR BOTH, IS ENTITLED TO RECEIVE 26 A DISABILITY RETIREMENT ALLOWANCE PURSUANT TO SECTION 25 IF THE 01452'99 8 1 RETIREMENT BOARD DETERMINES THAT ALL OF THE FOLLOWING 2 REQUIREMENTS ARE MET: 3 (A) THE MEMBER HAS NOT MET THE AGE REQUIREMENT UNDER 4 SECTION 19(1) OR QUALIFIED FOR AN UNREDUCED RETIREMENT ALLOWANCE 5 UNDER SECTION 19(2), BUT HAS ACCRUED AT LEAST THE MINIMUM NUMBER 6 OF YEARS OF CREDITED SERVICE NEEDED TO VEST IN THE RETIREMENT 7 SYSTEM. 8 (B) THE MEMBER'S INCAPACITY OCCURRED AS THE RESULT OF A PER- 9 SONAL INJURY OR DISEASE. 10 (C) EXCEPT AS PROVIDED IN SECTION 35, THE INCAPACITY IS 11 LIKELY TO BE PERMANENT. 12 (D) THE PERSONAL INJURY OR DISEASE RESULTING IN THE INCAPAC- 13 ITY DID NOT OCCUR IN THE PERFORMANCE OF DUTY IN THE SERVICE OF 14 THIS STATE. 15 (E) THE PERSONAL INJURY OR DISEASE RESULTING IN THE INCAPAC- 16 ITY WAS NOT THE RESULT OF THE WILLFUL NEGLIGENCE OF THE MEMBER. 17 (F) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, NOT 18 LATER THAN 1 YEAR AFTER TERMINATION OF THE MEMBER'S STATE EMPLOY- 19 MENT BECAUSE OF THE INCAPACITY, THE MEMBER, THE MEMBER'S PERSONAL 20 REPRESENTATIVE OR GUARDIAN, THE MEMBER'S DEPARTMENT HEAD, OR THE 21 STATE PERSONNEL DIRECTOR FILES AN APPLICATION FOR A DISABILITY 22 RETIREMENT ALLOWANCE FOR THAT MEMBER WITH THE RETIREMENT BOARD. 23 UPON APPEAL TO THE RETIREMENT BOARD, THE RETIREMENT BOARD, FOR 24 GOOD CAUSE, MAY ACCEPT AN APPLICATION FOR A DISABILITY RETIREMENT 25 ALLOWANCE NOT LATER THAN 2 YEARS AFTER TERMINATION OF THE 26 MEMBER'S STATE EMPLOYMENT BECAUSE OF THE INCAPACITY. 01452'99 9 1 (2) BEFORE A FINAL DETERMINATION IS MADE THAT A DISABILITY 2 RETIREMENT ALLOWANCE IS PAYABLE UNDER SUBSECTION (1), THE 3 RETIREMENT BOARD SHALL REQUIRE A WRITTEN MEDICAL EVALUATION OF 4 THE APPLICANT PREPARED BY THE MEDICAL ADVISOR. THE RETIREMENT 5 BOARD SHALL REQUIRE THE APPLICANT TO SUBMIT SUFFICIENT MEDICAL OR 6 OTHER EVIDENCE TO ENABLE THE MEDICAL ADVISOR TO COMPLETE THE 7 EVALUATION. 8 (3) A MEMBER ENTITLED TO RECEIVE A DISABILITY RETIREMENT 9 ALLOWANCE PURSUANT TO THIS SECTION MAY ELECT AN OPTION UNDER 10 SECTION 31(1). 11 (4) UPON ATTAINING AGE 60 YEARS, A DISABILITY RETIRANT UNDER 12 SUBSECTION (1) IS CONSIDERED RETIRED UNDER THE PROVISIONS OF SEC- 13 TION 19(1) AND SHALL RECEIVE A RETIREMENT ALLOWANCE CALCULATED 14 UNDER SECTION 20. 15 Sec. 25. (1) Upon retirement for disability,as provided 16 in section 24, a member shall receive a retirement allowance 17computed in accordance withCALCULATED UNDER section 20(1). 18 (2) THE DISABILITY RETIREMENT ALLOWANCE PAYABLE UNDER 19 SUBSECTION (1) IS PAYABLE BEGINNING ON THE FIRST DAY OF THE MONTH 20 FOLLOWING THE LATER OF EITHER OF THE FOLLOWING: 21 (A) THE DATE THE APPLICATION FOR A DISABILITY RETIREMENT 22 ALLOWANCE WAS FILED WITH THE RETIREMENT BOARD UNDER SECTION 24. 23 (B) THE DATE THE DISABILITY RETIRANT'S NAME LAST APPEARED ON 24 THE STATE PAYROLL WITH PAY. 25 (3)The retirement allowance or pension provided shall not26be less than $600.00 per annum. Upon retirement, the member may27elect an option provided for in section 31(1).THE RECEIPT OF A 01452'99 10 1 DISABILITY RETIREMENT ALLOWANCE UNDER THIS SECTION IS SUBJECT TO 2 SECTIONS 33, 34, AND 35. 3 Sec. 27. (1)IfEXCEPT AS PROVIDED IN SUBSECTIONS (3), 4 (4), AND (5), IF a member dies as a result of a personal injury 5 or disease arising out of and in the course of his or her employ- 6 ment with the state, or a disability retirant who retired under7section 21 dies prior to becoming age 60 and within 3 years after8the member's disability retirement from the same causes for which9he or she was retired, and such death or illness or injuriesAND 10 THE PERSONAL INJURY OR DISEASE resulting in deathareIS found 11 by the retirement board to have been the sole and exclusive 12 result of employment with the state, theapplicable benefits13provided in subsections (2), (3), (4), and (5) shall be paid,14subject to subsection (6).15(2) The accumulated contributions standing to the member's16account in the employees' savings fund shall be paid to such17person or persons as the member has nominated by written designa-18tion duly executed and filed with the retirement board, or if19there are no such designated person or persons surviving, then to20the member's legal representative.21(3) A retirement allowance of 1/3 of the final compensation22of the deceased person shall be paid to the surviving spouse to23whom the deceased person was married at the time he or she last24terminated employment with the state. If a child or children25under the age of 18 years also survives the deceased person, each26such child shall receive an allowance of an equal share of 1/4 of27the deceased person's final compensation. Upon the marriage,01452'99 11 1death, or attainment of age 18 years of any such child, there2shall be a redistribution by the retirement board to the deceased3person's remaining children under age 18 years.4(4) If there is no surviving spouse or if the surviving5spouse dies before the youngest surviving child of the deceased6person reaches the age of 18 years, then each such child under7age 18 shall each receive an allowance equal to 1/4 of the8deceased person's final compensation, but the total so paid in9any year to the children of a deceased person shall not exceed101/2 of his or her final compensation. If there are more than 211such surviving children under age 18 years, each such child shall12receive an allowance of an equal share of 1/2 of the deceased13person's final compensation. Upon the marriage, death, or14attainment of age 18 years of any such child, the child's allow-15ance shall terminate and there shall be a redistribution by the16retirement board to any remaining eligible children of the17deceased under age 18, but a child shall not receive an allowance18more than 1/4 of the deceased person's final compensation.19(5) If there is neither a spouse nor a child under age 1820years surviving the deceased person, then there shall be paid to21each parent of the deceased person whom the retirement board22after investigation determines to have been actually dependent23upon the deceased person through absence of earning power due to24disability, an allowance of 1/6 of the deceased person's final25compensation.26(6) The total of the retirement allowances payable under27subsections (3), (4), and (5) on account of the death of a member01452'99 12 1or retirant shall not exceed $2,400.00 per annum, nor an amount2which, when added to the statutory worker's compensation benefit3to which the dependents of the member or retirant are entitled,4exceeds his or her final compensation.SURVIVING SPOUSE SHALL 5 RECEIVE A RETIREMENT ALLOWANCE CALCULATED AS IF THE DECEASED 6 MEMBER HAD RETIRED EFFECTIVE THE DAY BEFORE THE DATE OF DEATH, 7 ELECTED OPTION A UNDER SECTION 31(1), AND NOMINATED HIS OR HER 8 SPOUSE AS RETIREMENT ALLOWANCE BENEFICIARY. THE RETIREMENT 9 ALLOWANCE SHALL BE CALCULATED BASED UPON THE AMOUNT OF THE 10 DECEASED MEMBER'S CREDITED SERVICE. HOWEVER, IF THE DECEASED 11 MEMBER DOES NOT HAVE THE MINIMUM NUMBER OF YEARS OF CREDITED 12 SERVICE NEEDED TO VEST IN THE RETIREMENT SYSTEM, THE AMOUNT OF 13 SERVICE NECESSARY TO REACH THAT AMOUNT OF CREDITED SERVICE SHALL 14 BE GRANTED. 15 (2) THE RETIREMENT ALLOWANCE PAYABLE TO A SURVIVING SPOUSE 16 UNDER THIS SECTION SHALL NOT BE LESS THAN $6,000.00 PER YEAR. 17 THE FIRST RETIREMENT ALLOWANCE PAYABLE TO A SURVIVING SPOUSE 18 UNDER SUBSECTION (1) SHALL NOT BE MORE THAN AN AMOUNT THAT WHEN 19 ADDED TO THE STATUTORY WORKER'S DISABILITY COMPENSATION BENEFITS 20 PAYABLE TO THE SURVIVING SPOUSE OF THE DECEASED MEMBER EQUALS THE 21 DECEASED MEMBER'S FINAL COMPENSATION. 22 (3) IF THE REQUIREMENTS OF SUBSECTION (1) ARE MET BUT THE 23 DECEASED MEMBER IS SURVIVED BY A SPOUSE AND A CHILD OR CHILDREN 24 UNDER 18 YEARS OF AGE, THEN THE RETIREMENT ALLOWANCE CALCULATED 25 UNDER SUBSECTIONS (1) AND (2) SHALL BE PAYABLE AS FOLLOWS: 26 (A) ONE HALF TO THE SURVIVING SPOUSE. 01452'99 13 1 (B) ONE HALF TO THE SURVIVING CHILD OR CHILDREN UNDER 18 2 YEARS OF AGE, IN EQUAL SHARES. THE RETIREMENT ALLOWANCE PAYABLE 3 TO A SURVIVING CHILD UNDER THIS SUBSECTION SHALL TERMINATE UPON 4 THAT CHILD'S MARRIAGE, DEATH, OR BECOMING 18 YEARS OF AGE, WHICH- 5 EVER OCCURS FIRST. THAT CHILD'S SHARE OF THE TERMINATED RETIRE- 6 MENT ALLOWANCE SHALL BE REDISTRIBUTED AMONG THE REMAINING CHIL- 7 DREN UNDER 18 YEARS OF AGE, IF ANY. WHEN THERE ARE NO SURVIVING 8 CHILDREN ENTITLED TO A SHARE OF THE RETIREMENT ALLOWANCE UNDER 9 THIS SUBSECTION, THE CHILDREN'S SHARE SHALL REVERT TO THE SURVIV- 10 ING SPOUSE. 11 (4) IF THE REQUIREMENTS OF SUBSECTION (1) ARE MET AND THE 12 DECEASED MEMBER IS NOT SURVIVED BY A SPOUSE BUT IS SURVIVED BY A 13 CHILD OR CHILDREN UNDER 18 YEARS OF AGE, THEN THE RETIREMENT 14 ALLOWANCE CALCULATED UNDER SUBSECTIONS (1) AND (2) SHALL BE PAID 15 TO THE SURVIVING CHILD OR CHILDREN IN EQUAL SHARES. THE RETIRE- 16 MENT ALLOWANCE PAYABLE TO A SURVIVING CHILD UNDER THIS SUBSECTION 17 SHALL TERMINATE UPON THAT CHILD'S MARRIAGE, DEATH, OR BECOMING 18 18 YEARS OF AGE, WHICHEVER OCCURS FIRST. THAT CHILD'S SHARE OF THE 19 TERMINATED RETIREMENT ALLOWANCE SHALL BE REDISTRIBUTED AMONG THE 20 REMAINING CHILDREN UNDER 18 YEARS OF AGE, IF ANY. 21 (5) IF THE REQUIREMENTS OF SUBSECTION (1) ARE MET AND THE 22 DECEASED MEMBER IS NOT SURVIVED BY A SPOUSE OR A CHILD OR CHIL- 23 DREN UNDER 18 YEARS OF AGE BUT IS SURVIVED BY A PARENT OR PARENTS 24 WHO WERE DEPENDENT UPON THE DECEASED MEMBER FOR 50% OR MORE OF 25 SUPPORT, THEN THE RETIREMENT ALLOWANCE CALCULATED UNDER 26 SUBSECTIONS (1) AND (2) SHALL BE PAID TO THE SURVIVING PARENT OR 27 PARENTS IN EQUAL SHARES. THE RETIREMENT ALLOWANCE PAYABLE TO A 01452'99 14 1 SURVIVING PARENT UNDER THIS SUBSECTION SHALL TERMINATE UPON THAT 2 PARENT'S DEATH. 3 (6) A RETIREMENT ALLOWANCE PAYABLE UNDER THIS SECTION TO A 4 SURVIVING SPOUSE BEFORE THE EFFECTIVE DATE OF THE AMENDATORY ACT 5 THAT ADDED THIS SUBSECTION SHALL NOT BE LESS THAN $6,000.00 PER 6 YEAR. A PORTION OF A RETIREMENT ALLOWANCE PAYABLE UNDER THIS 7 SECTION TO SURVIVING CHILDREN OR PARENTS BEFORE THE EFFECTIVE 8 DATE OF THE AMENDATORY ACT THAT ADDED THIS SUBSECTION SHALL NOT 9 BE LESS THAN THAT PORTION OF A $6,000.00 ANNUAL RETIREMENT ALLOW- 10 ANCE THAT THAT CHILD OR PARENT WAS ENTITLED TO UNDER THIS SECTION 11 BEFORE THAT DATE. 12 Sec. 33. (1)(a)Once each year during the first56 13 years following the retirement of a memberon a disability14retirement allowance, and at least once in every 3-year period15thereafterUNDER SECTION 21 OR 24, the retirement board may, and 16 upon the retirant's application shall, requireanyA disability 17 retirant,whohas not attained ageIS UNDER 60 years,OF 18 AGE toundergo a medical examination; such examination to be19made by or under the direction of the medical advisor at the20place of residence of said retirant, or other place mutually21agreed upon. Should any disability retirant, who has not22attained age 60 years, refuse to submit to such medical examina-23tion in any such period, his disability retirement allowance may24be discontinued until his withdrawal of such refusal, and should25such refusal continue for 1 year, all his rights in and to his26disability retirement allowance may be revoked by the retirement27board. If upon such medical examination of a disability01452'99 15 1retirant, the medical advisor reports and his report is concurred2in by the retirement board, that the disability retirant is phys-3ically able and capable of resuming employment, he shall be4restored to active service with the state and his disability5retirement allowance shall cease.SUBMIT TO A MEDICAL EVALUATION 6 DESCRIBED IN SECTION 21(2) OR A VOCATIONAL EVALUATION DESCRIBED 7 IN SECTION 35(1), OR BOTH. THE RETIREMENT BOARD SHALL MAKE REA- 8 SONABLE ACCOMMODATIONS REGARDING THE LOCATION AND METHOD OF THE 9 MEDICAL OR VOCATIONAL EVALUATION TAKING INTO CONSIDERATION THE 10 LOCATION AND HEALTH OF THE DISABILITY RETIRANT. THE RETIREMENT 11 BOARD MAY RECOMMEND THAT THE DISABILITY RETIRANT PARTICIPATE IN A 12 PROGRAM OF VOCATIONAL REHABILITATION IN THE MANNER PROVIDED IN 13 SECTION 35. IF A DISABILITY RETIRANT WHO IS UNDER 60 YEARS OF 14 AGE REFUSES TO SUBMIT TO THE EVALUATION OR EVALUATIONS REQUIRED 15 BY THE RETIREMENT BOARD UNDER THIS SECTION, HIS OR HER DISABILITY 16 RETIREMENT ALLOWANCE MAY BE DISCONTINUED UNTIL THE DISABILITY 17 RETIRANT SUBMITS TO THE REQUIRED EVALUATION OR EVALUATIONS. IF 18 THE REFUSAL CONTINUES FOR 1 YEAR, ALL OF THE DISABILITY 19 RETIRANT'S RIGHTS IN AND TO A DISABILITY RETIREMENT ALLOWANCE MAY 20 BE REVOKED BY THE RETIREMENT BOARD. 21 (2) THE RETIREMENT BOARD MAY PAY FROM THE FUNDS OF THE 22 RETIREMENT SYSTEM THE COST OF PARTICIPATION BY A DISABILITY 23 RETIRANT IN A PROGRAM OF VOCATIONAL REHABILITATION OR A RETURN TO 24 WORK PROGRAM ADMINISTERED BY THIS STATE IF THE AMOUNT PAYABLE FOR 25 PARTICIPATION IN THE PROGRAM PLUS THE AMOUNT OF A DIFFERENTIAL 26 PAYMENT PAYABLE UNDER SECTION 35(5), IF ANY, IS LESS THAN THE 27 PROJECTED BENEFIT TOTAL. AS USED IN THIS SUBSECTION, "PROJECTED 01452'99 16 1 BENEFIT TOTAL" MEANS THE DIFFERENCE BETWEEN 60 AND THE DISABILITY 2 RETIRANT'S AGE AT HIS OR HER PROJECTED REEMPLOYMENT DATE MULTI- 3 PLIED BY THE ANNUAL DISABILITY BENEFIT PAYABLE TO THE DISABILITY 4 RETIRANT. 5 (3) IF THE RETIREMENT BOARD DETERMINES THAT A DISABILITY 6 RETIRANT IS NO LONGER INCAPACITATED FOR THE STATE EMPLOYMENT THAT 7 THE DISABILITY RETIRANT WAS PERFORMING IMMEDIATELY BEFORE TERMI- 8 NATING THAT EMPLOYMENT BECAUSE OF THE INCAPACITY, OR FOR THE 9 STATE EMPLOYMENT FOR WHICH THE DISABILITY RETIRANT IS QUALIFIED 10 BY REASON OF TRAINING OR EXPERIENCE OR BOTH, THE RETIREMENT BOARD 11 SHALL RECOMMEND THAT THIS STATE REEMPLOY THE DISABILITY 12 RETIRANT. THE RETIREMENT SYSTEM SHALL CONTINUE TO PAY A DISABIL- 13 ITY RETIREMENT ALLOWANCE TO A DISABILITY RETIRANT UNTIL HE OR SHE 14 IS REEMPLOYED, SUBJECT TO SUBSECTION (4). 15 (4)(b) ShouldIF the secretaryreport and certify16 REPORTS AND CERTIFIES to the retirement board thatsuchA dis- 17 abilitybeneficiaryRETIRANT is engaged inagainful occupa- 18 tion paying more than the difference between his OR HER disabil- 19 ity retirement allowance and his OR HER ADJUSTED final compensa- 20 tion, andshouldIF the retirement boardconcur in such21 CONCURS IN THE report, then the amount ofhisTHE DISABILITY 22 retirement allowance shall be reduced to an amountwhichTHAT 23 together with the amount earned byhim shall equalTHE DISABIL- 24 ITY RETIRANT EQUALS his OR HER ADJUSTED final compensation. 25ShouldIF the earnings ofsuchTHE disability retirantbe26later changedCHANGE, the amount of his OR HER retirement 27 allowance shallbe further modified in like mannerAGAIN BE 01452'99 17 1 ADJUSTED UNDER THIS SECTION. AS USED IN THIS SUBSECTION, 2 "ADJUSTED FINAL COMPENSATION" MEANS THE DISABILITY RETIRANT'S 3 FINAL COMPENSATION PLUS A 1-STEP INCREASE AT THAT CLASSIFICATION, 4 IF ANY, WHICH AMOUNT IS THEN INCREASED BY 3% COMPOUNDED ANNUALLY 5 FOR EACH YEAR OR MAJOR PORTION OF A YEAR THAT EXPIRES AFTER THE 6 DISABILITY RETIREMENT EFFECTIVE DATE AND THE DATE OF THE CALCULA- 7 TION UNDER THIS SUBSECTION. 8 Sec. 34. A disability retirant who has been orshall be9 IS reinstated in active service, as provided in section 33,10shall fromUNDER SECTION 33 OR 35 AGAIN BECOMES A MEMBER BEGIN- 11 NING ON the date ofsuchTHE reinstatement.again become a12member of the retirement system.Upon reinstatement ofsuch13 THE disability retirant to active service, any balancehe may14haveSTANDING TO HIS OR HER CREDIT in the pension reserve fund 15 at the time ofsuchTHE reinstatementto active service,16 shall be transferred from the pension reserve fund to the 17 employees' savings fund and credited to his OR HER individual 18 account in the employees' savings fund. Any service, on the19basis of which his retirement allowance was computed at the time20of his retirement,CREDIT ACCRUED BY THE REINSTATED DISABILITY 21 RETIRANT BEFORE DISABILITY RETIREMENT shall be restored to full 22 force and effect, and, except in the case of retirement for 23non-dutyNONDUTY disabilityas provided inUNDER section 24, 24heTHE DISABILITY RETIRANT shall be given service credit for 25 the period of timehe was out of service due to such disability26 A DISABILITY RETIREMENT ALLOWANCE WAS PAID. 01452'99 18 1 SEC. 35. (1) BEFORE A FINAL DETERMINATION IS MADE THAT A 2 MEMBER IS TOTALLY INCAPACITATED FOR STATE EMPLOYMENT UNDER 3 SECTION 21 OR 24 AND THAT A DISABILITY RETIREMENT ALLOWANCE IS 4 PAYABLE UNDER SECTION 23 OR 25, THE RETIREMENT BOARD MAY REQUIRE 5 THAT A WRITTEN VOCATIONAL EVALUATION OF THE DISABILITY APPLICANT 6 BE PREPARED BY A REHABILITATION AGENCY. THE EVALUATION SHALL 7 CONTAIN ALL OF THE FOLLOWING: 8 (A) A DESCRIPTION OF THE DISABILITY APPLICANT'S VOCATIONAL 9 LIMITATIONS, IF ANY, RESULTING FROM THE PERSONAL INJURY OR DIS- 10 EASE THAT IS THE BASIS OF THE CLAIMED INCAPACITY. 11 (B) A DESCRIPTION OF THE DISABILITY APPLICANT'S POTENTIAL, 12 IF ANY, FOR VOCATIONAL REHABILITATION. 13 (C) A RECOMMENDATION REGARDING A PROGRAM OF VOCATIONAL REHA- 14 BILITATION OF THE DISABILITY APPLICANT, IF APPLICABLE. 15 (2) IF THE RETIREMENT BOARD DETERMINES THAT THE APPLICANT IS 16 OTHERWISE QUALIFIED FOR A DISABILITY RETIREMENT ALLOWANCE UNDER 17 SECTIONS 21 AND 23 OR SECTIONS 24 AND 25, BUT THAT THE POTENTIAL 18 EXISTS FOR THE VOCATIONAL REHABILITATION OF THE DISABILITY APPLI- 19 CANT FOR REASONABLE STATE EMPLOYMENT COMPATIBLE WITH THE DISABIL- 20 ITY APPLICANT'S MENTAL AND PHYSICAL CONDITION, THE DISABILITY 21 APPLICANT SHALL BE RETIRED UNDER THE APPLICABLE SECTIONS. THE 22 RETIREMENT BOARD MAY RECOMMEND THAT THE DISABILITY RETIRANT PAR- 23 TICIPATE IN GOOD FAITH IN A REASONABLE PROGRAM OF VOCATIONAL 24 REHABILITATION OR A RETURN TO WORK PROGRAM ADMINISTERED BY THIS 25 STATE. 26 (3) THE AGENCY PROVIDING A PROGRAM OF VOCATIONAL 27 REHABILITATION OR RETURN TO WORK PROGRAM SHALL REPORT TO THE 01452'99 19 1 RETIREMENT BOARD ON A PERIODIC BASIS, AS REQUIRED BY THE 2 RETIREMENT BOARD, REGARDING THE PROGRESS OF THE DISABILITY RETIR- 3 ANT WHO PARTICIPATES IN A PROGRAM OF VOCATIONAL REHABILITATION OR 4 RETURN TO WORK PROGRAM UNDER SUBSECTION (2). IF THE RETIREMENT 5 BOARD DETERMINES THAT THE DISABILITY RETIRANT IS NO LONGER INCA- 6 PACITATED FOR THE STATE EMPLOYMENT THAT HE OR SHE WAS PERFORMING 7 IMMEDIATELY BEFORE TERMINATION OF THAT STATE EMPLOYMENT BECAUSE 8 OF THE INCAPACITY OR FOR THE STATE EMPLOYMENT FOR WHICH HE OR SHE 9 IS QUALIFIED BY REASON OF TRAINING OR EXPERIENCE OR BOTH, THE 10 DISABILITY RETIRANT SHALL BE CONSIDERED REHABILITATED. 11 (4) THE RETIREMENT BOARD SHALL RECOMMEND THAT THIS STATE 12 OFFER REASONABLE STATE EMPLOYMENT TO THE DISABILITY RETIRANT WHO 13 IS CONSIDERED REHABILITATED UNDER SUBSECTION (3). THE REASONABLE 14 STATE EMPLOYMENT OFFERED TO THE REHABILITATED DISABILITY RETIRANT 15 SHALL BE COMPATIBLE WITH THE REHABILITATED DISABILITY RETIRANT'S 16 MENTAL AND PHYSICAL CONDITION. 17 (5) A REHABILITATED DISABILITY RETIRANT WHO ACCEPTS REASON- 18 ABLE STATE EMPLOYMENT UNDER SUBSECTION (4) IS NOT ENTITLED TO 19 RECEIVE A DISABILITY RETIREMENT ALLOWANCE UNDER SECTIONS 21 AND 20 23 OR SECTIONS 24 AND 25. THE RETIREMENT SYSTEM SHALL CEASE 21 PAYING THE DISABILITY RETIREMENT ALLOWANCE TO THE REHABILITATED 22 DISABILITY RETIRANT EFFECTIVE UPON THE BEGINNING DATE OF THE 23 ACCEPTED STATE EMPLOYMENT. HOWEVER, IF THE REHABILITATED DIS- 24 ABILITY RETIRANT ACCEPTS THE OFFERED STATE EMPLOYMENT, RESUMES 25 STATE EMPLOYMENT UNDER THIS SUBSECTION, AND THE COMPENSATION PAY- 26 ABLE FOR THAT STATE EMPLOYMENT IS LESS THAN THE REHABILITATED 27 DISABILITY RETIRANT'S ADJUSTED FINAL COMPENSATION, THEN THE 01452'99 20 1 RETIREMENT SYSTEM SHALL PAY TO THE REHABILITATED DISABILITY 2 RETIRANT A DIFFERENTIAL PAYMENT EQUAL TO THE DIFFERENCE, IF ANY, 3 BETWEEN THE AMOUNT OF COMPENSATION PAYABLE FOR THE ACCEPTED STATE 4 EMPLOYMENT AND ADJUSTED FINAL COMPENSATION. HOWEVER, THE DIFFER- 5 ENTIAL PAYMENT SHALL NOT EXCEED AN AMOUNT CALCULATED UNDER SEC- 6 TION 23 OR 25, WHICHEVER APPLIES. AS USED IN THIS SUBSECTION, 7 "ADJUSTED FINAL COMPENSATION" MEANS THE DISABILITY RETIRANT'S 8 FINAL COMPENSATION PLUS A 1-STEP INCREASE AT THAT CLASSIFICATION, 9 IF ANY, WHICH AMOUNT IS THEN INCREASED BY 3% COMPOUNDED ANNUALLY 10 FOR EACH YEAR OR MAJOR PORTION OF A YEAR THAT EXPIRES AFTER THE 11 DISABILITY RETIREMENT EFFECTIVE DATE AND THE DATE OF THE CALCULA- 12 TION UNDER THIS SUBSECTION. 13 (6) IF THE RETIREMENT BOARD, WITHIN 6 MONTHS AFTER A REHA- 14 BILITATED DISABILITY RETIRANT RESUMES STATE EMPLOYMENT UNDER SUB- 15 SECTION (5), DETERMINES THAT THE REHABILITATED DISABILITY RETIR- 16 ANT CONTINUES TO BE TOTALLY INCAPACITATED FOR STATE EMPLOYMENT 17 UNDER SECTION 21 OR 24, THE RETIREMENT BOARD MAY WAIVE ALL OR A 18 PORTION OF THE APPLICATION REQUIREMENTS UNDER SECTION 21 OR 24. 01452'99 Final page. KKR