HOUSE BILL No. 6428


     September 24, 2002, Introduced by Reps. Rivet and Allen and referred to the Committee on Senior Health, Security and Retirement.


        A bill to amend 1966 PA 28, entitled

   "An act to authorize the board of trustees of police and firemen
   or municipal employees retirement systems to increase benefits,"

   by amending the title and sections 1 and 2 (MCL 38.571 and

   38.572).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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                                      TITLE

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             An act to authorize the board of trustees of police and

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        firemen  or  RETIREMENT SYSTEMS, municipal employees retirement

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        systems, OR COUNTY RETIREMENT SYSTEMS to increase benefits.

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             Sec. 1.  The board of trustees with the approval of the gov-

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        erning body of the city, village or township of any police and

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        firemen  or  RETIREMENT SYSTEM, municipal employees retirement

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        system, OR COUNTY RETIREMENT SYSTEM may use not more than 1/2 of

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        the interest earned by any reserve fund in the system to contract



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        for medical, hospital or nursing care for any person receiving

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        benefits of the system.  "Reserve fund" means the  moneys  MONEY

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        contributed by the city, village,  or  township, OR COUNTY.

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             Sec. 2.  The amount of interest used according to the provi-

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        sions of this act shall be included as interest and other earn-

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        ings on the money of the retirement system in the computation of

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        any city, village,  or  township, OR COUNTY liability for regular

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        interest.  These supplemental benefits shall not be considered an

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        increase in the rate of retirement allowances to be paid.  They

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        shall be on a year-to-year basis and shall not create a liability

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        for their continuance.


































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