HOUSE BILL No. 5547

 

April 19, 2012, Introduced by Reps. Goike, LaFontaine, Cotter, Hughes, Shaughnessy, Lund, Rogers, Johnson, Agema, McMillin, Graves, Somerville, Kowall, Forlini and Jenkins and referred to the Committee on Government Operations.

 

     A bill to amend 1957 PA 261, entitled

 

"Michigan legislative retirement system act,"

 

by amending section 23c (MCL 38.1023c), as amended by 1998 PA 501.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 23c. (1) After December 31, 1986 Except as otherwise

 

provided in subsection (4), on January 1 of each year a retirement

 

allowance attributable to a member who first becomes a member on or

 

before January 1, 1995, shall be increased 4% compounded annually.

 

     (2) Beginning January 1, 1995 Except as otherwise provided in

 

subsection (4), each retirement allowance attributable to a member

 

who first becomes a member after January 1, 1995, shall be

 

increased each January 1. The amount of the annual increase under

 

this subsection shall be equal to 4% of the retirement allowance

 

payable as of the retirement allowance effective date.

 


     (3) A Except as otherwise provided in subsection (4), a

 

retirement allowance that begins after January 1 of the immediately

 

preceding calendar year shall be increased under this section on a

 

pro rata basis by the applicable percentage amount from the time

 

the retirement allowance begins to the date of the increase.

 

     (4) Beginning on the effective date of the amendatory act that

 

added this subsection, a retirement allowance shall not be

 

increased under this section.