SENATE BILL NO. 194


   February 2, 1999, Introduced by Senators JAYE and STEIL and 
        referred to the Committee on Appropriations.



        A bill to amend 1943 PA 240, entitled

   "State employees' retirement act,"

   (MCL 38.1 to 38.69) by adding section 18a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 18A.  (1) BEGINNING ON THE EFFECTIVE DATE OF THIS SEC-

 2    TION, THE RETIREMENT SYSTEM SHALL NOT PAY A RETIREMENT ALLOWANCE

 3    TO A MEMBER OR DEFERRED MEMBER WHO BECOMES ELIGIBLE FOR A RETIRE-

 4    MENT ALLOWANCE WHILE THAT INDIVIDUAL IS A STATE SENATOR OR STATE

 5    REPRESENTATIVE.  THE RETIREMENT SYSTEM SHALL BEGIN PAYMENT OF A

 6    RETIREMENT ALLOWANCE NOT PAID UNDER THIS SUBSECTION ON THE FIRST

 7    DAY OF THE CALENDAR MONTH THAT FOLLOWS THE DATE THE INDIVIDUAL NO

 8    LONGER HOLDS THE OFFICE OF STATE SENATOR OR STATE

 9    REPRESENTATIVE.  THE RETIREMENT SYSTEM SHALL BEGIN PAYMENT OF THE

10    RETIREMENT ALLOWANCE WITHOUT CHANGE IN AMOUNT OR CONDITIONS AS

11    OTHERWISE PRESCRIBED IN THIS ACT.


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 1         (2) THE RETIREMENT SYSTEM SHALL SUSPEND PAYMENT OF A

 2    RETIREMENT ALLOWANCE TO A RETIRANT WHO FIRST BECOMES A RETIRANT

 3    ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION AND WHO BECOMES A

 4    STATE SENATOR OR STATE REPRESENTATIVE.  THE RETIREMENT SYSTEM

 5    SHALL SUSPEND PAYMENT OF THE RETIREMENT ALLOWANCE EFFECTIVE THE

 6    FIRST DAY OF THE CALENDAR MONTH THAT FOLLOWS THE DATE THE RETIR-

 7    ANT TAKES THE OFFICE OF STATE SENATOR OR STATE REPRESENTATIVE.

 8    THE RETIREMENT SYSTEM SHALL RESUME PAYMENT OF A SUSPENDED RETIRE-

 9    MENT ALLOWANCE ON THE FIRST DAY OF THE CALENDAR MONTH THAT FOL-

10    LOWS THE DATE THE RETIRANT NO LONGER HOLDS THE OFFICE OF STATE

11    SENATOR OR STATE REPRESENTATIVE.  THE RETIREMENT SYSTEM SHALL

12    RESUME PAYMENT OF THE RETIREMENT ALLOWANCE WITHOUT CHANGE IN

13    AMOUNT OR CONDITIONS AS OTHERWISE PRESCRIBED IN THIS ACT.

14         (3) THE RETIREMENT SYSTEM SHALL NOT PROVIDE ANY OTHER BENE-

15    FIT UNDER THIS ACT TO AN INDIVIDUAL WHO IS NOT ELIGIBLE TO

16    RECEIVE A RETIREMENT ALLOWANCE UNDER SUBSECTION (1) OR (2),

17    INCLUDING HEALTH BENEFITS AND LIFE INSURANCE.  AN INDIVIDUAL IS

18    ELIGIBLE FOR THE BENEFITS DESCRIBED IN THIS SUBSECTION WHEN HIS

19    OR HER RETIREMENT ALLOWANCE IS PAYABLE UNDER SUBSECTION (1) OR

20    (2).

21         (4) AS A CONDITION OF RECEIVING A RETIREMENT ALLOWANCE UNDER

22    THIS ACT, A MEMBER, DEFERRED MEMBER, OR RETIRANT SHALL NOTIFY THE

23    RETIREMENT SYSTEM IF HE OR SHE BECOMES A STATE SENATOR OR STATE

24    REPRESENTATIVE.  A MEMBER, DEFERRED MEMBER, OR RETIRANT WHO FAILS

25    TO NOTIFY THE RETIREMENT SYSTEM OF BECOMING A STATE SENATOR OR

26    STATE REPRESENTATIVE AS REQUIRED UNDER THIS SECTION IS LIABLE TO

27    THE RETIREMENT SYSTEM FOR AMOUNTS PAID OR BENEFITS RECEIVED IN



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 1    VIOLATION OF THIS SECTION, INCLUDING INTEREST ON THOSE AMOUNTS AS

 2    DETERMINED BY THE RETIREMENT BOARD.




















































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