Michigan Compiled Laws
Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69)
Section 38.67a - Duty Disability Retirement Allowance; Supplemental Benefit; Health Insurance Coverage; Exception.

Sec. 67a.
(1) Except as otherwise provided in this section or section 33, a qualified participant who becomes totally incapacitated for duty because of a personal injury or disease shall be retired if all of the following apply:
(a) Within 1 year after the qualified participant becomes totally incapacitated or at a later date if the later date is approved by the retirement board, the qualified participant, the qualified participant's personal representative or guardian, his or her department head, or the state personnel director files an application on behalf of the member with the retirement board.
(b) The retirement board finds that the qualified participant's personal injury or disease is the natural and proximate result of the qualified participant's performance of duty.
(c) A medical advisor conducts a medical examination of the qualified participant and certifies in writing that the qualified participant is mentally or physically totally incapacitated for further performance of duty, that the total incapacitation is probably permanent, and that the qualified participant should be retired.
(d) The retirement board concurs in the recommendation of the medical advisor.
(2) If the retirement board grants the application of the qualified participant under subsection (1), the qualified participant shall be granted a supplemental benefit equivalent to the amount provided in section 23 as if the former qualified participant had retired under section 21, which supplemental benefit shall be offset by the value of the distribution of his or her accumulated balance as determined by the retirement system upon becoming a former qualified participant pursuant to section 67.
(3) If a qualified participant dies as a result of a personal injury or disease arising out of and in the course of his or her employment with this state, or if a former qualified participant who retired under subsection (1) who dies before becoming age 60 and within 3 years after the former qualified participant's disability retirement from the same causes from which he or she separated, and such death or illness or injuries resulting in death are found by the retirement board to have been the sole and exclusive result of employment with this state, a supplemental benefit shall be granted equivalent to the amount provided for in section 27 had the former qualified participant been considered retired under section 27, which supplemental benefit shall be offset by the value of the distribution of his or her accumulated balance upon becoming a former qualified participant pursuant to section 67.
(4) A qualified participant, former qualified participant, or beneficiary of a deceased participant, which participant is eligible for a duty disability retirement allowance pursuant to subsection (1), (2), or (3), is eligible for health insurance coverage under section 20d in all respects and under the same terms as would be a retirant and his or her beneficiaries under Tier 1.
(5) Except as otherwise provided in this section or section 33, a qualified participant who becomes totally incapacitated for duty because of a personal injury or disease that is not the natural and proximate result of the qualified participant's performance of duty may be retired if all of the following apply:
(a) Within 1 year after the qualified participant becomes totally incapacitated or at a later date if the later date is approved by the retirement board, the qualified participant, the qualified participant's personal representative or guardian, the qualified participant's department head, or the state personnel director files an application on behalf of the qualified participant with the retirement board.
(b) A medical advisor conducts a medical examination of the qualified participant and certifies in writing that the qualified participant is mentally or physically totally incapacitated for further performance of duty, that the incapacitation is likely to be permanent, and that the qualified participant should be retired.
(c) The qualified participant has been a state employee for at least 10 years.
(6) If the retirement board grants the application of the qualified participant under subsection (5), the qualified participant shall be granted a supplemental benefit equivalent to the amount provided for in section 25 as if the qualified participant had retired under section 24. The supplemental benefit shall be offset by the value of the distribution of his or her accumulated balance as determined by the retirement system upon becoming a former qualified participant pursuant to section 67.
(7) Except as otherwise provided in this section, if a qualified participant who has been a state employee for the number of years necessary to vest under Tier 1 dies as a result of causes occurring not in the performance of duty to this state, a supplemental benefit shall be granted equivalent to the amount provided for in section 25 had the former qualified participant been considered retired under section 24, which supplemental benefit shall be offset by the value of the distribution of his or her accumulated balance as determined by the retirement system upon becoming a former qualified participant pursuant to section 67.
(8) A qualified participant, former qualified participant, or beneficiary of a deceased participant, which participant is eligible for a disability retirement allowance pursuant to subsection (5), (6), or (7) is eligible for health insurance coverage under section 20d in all respects and under the same terms as would be a retirant and his or her beneficiaries under Tier 1.
(9) This section does not apply to a qualified participant or former qualified participant who was a member who meets the requirements of section 55(2)(d), (e), or (f).
(10) Subsections (4) and (8) do not apply to a qualified participant or former qualified participant who was first employed and entered upon the payroll of his or her employer on or after January 1, 2012.
History: Add. 1996, Act 487, Eff. Mar. 31, 1997 ;-- Am. 2004, Act 109, Imd. Eff. May 20, 2004 ;-- Am. 2011, Act 264, Imd. Eff. Dec. 15, 2011 Compiler's Notes: Section 2 of Act 487 of 1996 provides:“If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety.”Enacting section 1 of Act 264 of 2011 provides:"Enacting section 1. If the office of retirement services in the department of technology, management, and budget receives notification from the United States internal revenue service that any section or any portion of a section of this amendatory act will cause the retirement system to be disqualified for tax purposes under the internal revenue code, then the portion that will cause the disqualification does not apply."

Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 38 - Civil Service and Retirement

Act 240 of 1943 - State Employees' Retirement Act (38.1 - 38.69)

Section 38.1 - Short Title; Meanings of Words and Phrases.

Section 38.1a - Definitions; A, B.

Section 38.1b - Definitions; B, C.

Section 38.1c - Definitions; D.

Section 38.1d - Definitions.

Section 38.1e - Definitions; F to I.

Section 38.1f - Definitions; M to O.

Section 38.1g - Definitions; P.

Section 38.1h - Definitions; R.

Section 38.1i - Definitions; S, T.

Section 38.2 - State Employees' Retirement System; Creation; Administration by Retirement Board; Rules.

Section 38.3 - Retirement Board; Appointment and Terms of Members.

Section 38.4 - Retirement Board; Vacancies, Vacation of Office.

Section 38.5 - Retirement Board; Oath; Quorum; Conducting Business at Public Meeting; Notice of Meeting; Compensation and Expenses.

Section 38.6 - Retirement Board; Officers and Employees.

Section 38.7 - Retirement System; Actuarial Valuation of Assets and Liabilities; Investigation of Mortality, Service, and Compensation of Members.

Section 38.8 - Administrative Board; Investment of Funds, Purchase of Life Insurance or Annuity, Deposits.

Section 38.9 - State Treasurer as Custodian of Retirement System Funds; Powers and Duties.

Section 38.10 - Retirement Board Members and Employees; Interest in Investments Prohibited.

Section 38.11 - Employees' Savings Fund, Employer's Accumulation Fund, Annuity Reserve Fund, Pension Reserve Fund, Income Fund, Expense Fund, and Health Insurance Reserve Fund; Creation; Health Advance Funding Subaccount; Description of Funds as Refe...

Section 38.12 - Annual Statement of Retirement Funds in Custody of State Treasurer; Availability of Report and Other Writings to Public; Request for Statement of Credit.

Section 38.13 - Membership in Retirement System.

Section 38.13a - Blind or Partially Sighted Licensed Vending Stand Operators Deemed Employees; Rights and Benefits; Eligibility; Contribution as Condition to Service Credit; Blindness Not Deemed Retirable Disability; Employer Cost.

Section 38.13b - Credited Service to Include Credit for Service Rendered to Joint Federal-State Commission; Conditions.

Section 38.14 - Information Required of Members by Retirement Board.

Section 38.15 - Original Members; Prior Service Certification.

Section 38.16 - Cessation of Membership; Reemployment.

Section 38.17 - Service Credited From State Board of Control for Vocational Education; Conditions.

Section 38.17a - Use of Credited Service Acquired in Employ of Governmental Unit; “Governmental Unit of the State” Defined.

Section 38.17b - Credited Service to Include Service Rendered Certain Universities.

Section 38.17c - Retirement System Service Credit for Period of Service Under County Department of Social Services; Conditions.

Section 38.17d - Credited Service to Include Service Rendered to Department of State Police or Its Predecessor Agencies, or to Court of Record; Conditions.

Section 38.17e, 38.17f - Repealed. 1998, Act 205, Eff. Aug. 1, 1998.

Section 38.17g - Parental Leave; Purchase of Service Credit.

Section 38.17h - Full-Time Service as Employee With City, County, Township, or Village of This State; Purchase of Service Credit.

Section 38.17i - Full-Time Service With Federal Government or as State Employee With Another State; Purchase of Service Credit.

Section 38.17j - Purchase of Combined Total of More Than 10 Years Prohibited; Purchase of Service Credit in Separate Increments; Future Purchases Not Barred; Refund; Actuarial Cost.

Section 38.17k - Repealed. 1998, Act 205, Eff. Aug. 1, 1998.

Section 38.17l - Purchase of Additional Service Credit by Employee of State Accident Fund, Michigan Biologic Products Institute, or Liquor Control Commission.

Section 38.17m - Purchase of Service Credit; Limitation; Refund.

Section 38.17n - City Employee; Transfer or Purchase of Service Credit.

Section 38.18 - Credit for Military or Federal Service; Credit for Prior Service; Conditions; Computation.

Section 38.19 - Retirement Upon Written Application to Retirement Board; Retirement Without Reduction in Retirement Allowance; Definitions; Layoff Status Because Agency or Inpatient Facility Designated for Closure; Conditions; Certification; Applicat...

Section 38.19a - Retirement Upon Satisfaction of Certain Requirements; Monthly Retirement Allowance Supplement; Benefits, Salary, or Remuneration Precluding Payment Under Subsection (2); Payment of Sick Leave; Payment by Retirement System; Amount Pay...

Section 38.19b - Right to Retire and Receive Retirement Allowance Computed Under MCL 38.20(1); Application Period; Requirements; Payment for Accumulated Sick Leave in 60 Monthly Installments.

Section 38.19c - Right to Retire and Receive Retirement Allowance Computed Under MCL 38.20(1); Application Period; Requirements; Payment for Accumulated Sick Leave in 60 Monthly Installments.

Section 38.19d - Right to Retire and Receive Retirement Allowance Computed Under MCL 38.20(1); Application Period; Requirements; Payment for Accumulated Sick Leave in 60 Monthly Installments.

Section 38.19e - Right to Retire and Receive Retirement Allowance Computed Under MCL 38.20(1); Application Period; Requirements; Payment for Amounts Entitled to Receive at Retirement.

Section 38.19f - Retirement and Receipt of Retirement Allowance; Requirements; Accumulated Sick Leave; Request to Extend Effective Date of Retirement; Calculation; State Contract Prohibited.

Section 38.19g - Member Meeting Certain Requirements on or Before November 1, 2002; Computation of Retirement Allowance; Payment of Accumulated Sick Leave or Annual Leave; Extension of Effective Date; Participant in Tier 2.

Section 38.19h - Payments Not Tax Exempt and Subject to Certain Operations of Law.

Section 38.19i - Retirement Allowance; Computation; Accumulated Sick Leave; Purchase of Service Credit; Hiring Under Contract; Limitation.

Section 38.19j - Retirement; Requirements; Accumulated Annual Leave, Sick Leave, and Deferred Leave Hours; Forfeiture; Inclusion in Calculation for Determination of Final Average Compensation; Extension; Request; Retirement Allowance Calculation; "In...

Section 38.20 - Computation of Retirement Allowance; Right to Elect Option; Retirement Before Age 65; Death of Retirant; Separation From Service; Department of Mental Health Employee Termination; Recalculation and Payment of Retirement Allowance; Eli...

Section 38.20a - Minimum Retirement Allowance.

Section 38.20b - Increase in Monthly Retirement Allowance; Payment.

Section 38.20c - Supplement to Retirement Allowance.

Section 38.20d - Hospitalization, Medical, Dental, and Vision Coverage Insurance Premium; Computation and Allocation of Cost Savings; Payment by Retirement Board; “Retirant” Defined.

Section 38.20e - Supplemental Retirement Allowance; Amount; Payment.

Section 38.20f - Supplement to Retirement Allowance Payable on or After September 30, 1976.

Section 38.20g - Determining Rate of Investment Return on Retirement System Assets and Present Value of Retirement Allowances; Calculation and Reduction of Distribution Income; Crediting Distribution Units to Retirant or Retirement Allowance Benefici...

Section 38.20h - Supplemental Payments for Retirants or Retirement Allowance Beneficiaries With Retirement Allowance Effective Date Before October 1, 1986; Future Adjustments.

Section 38.20i - Supplement.

Section 38.20j - Member Not Making Election Under MCL 38.50a; Calculation of Retirement Allowance Beginning April 1, 2012; Items of Compensation; Accumulation of Service Credit; Member Making Election Under MCL 38.50a(1) and Designation Under MCL 38....

Section 38.21 - Duty Disability Retirement.

Section 38.22 - Retirement for Disability at Age 60; Service Retirement Allowance; Crediting 10 Years of Service.

Section 38.23 - Retirement for Disability Before Attaining Age 60; Benefits.

Section 38.24 - Non-Duty Disability Retirement.

Section 38.25 - Retirement for Disability.

Section 38.26 - Repealed. 1955, Act 237, Eff. Oct. 24, 1955.

Section 38.27 - Death Resulting From Personal Injury or Disease Arising Out of and in Course of State Employment; Survivor Benefits.

Section 38.27a - Retirement Allowances Granted Under MCL 38.27; Adjustment.

Section 38.28 - Withdrawal of Member Before Retirement; Refund of Contributions; Restoration on Re-Employment; Court Administrator.

Section 38.29 - Death Before Retirement; Refund of Contributions.

Section 38.30 - Withholding Refund of Contributions.

Section 38.31 - Election of Regular Retirement Allowance or Reduced Retirement Allowance; Payment Options; Designation of Beneficiary; Effect of Beneficiary's Death or Divorce; Request by Nonduty Disability Retirant to Change Elections; Death of Memb...

Section 38.32 - Remarriage of Surviving Spouse.

Section 38.33 - Disability Retirant Under Age 60; Medical Examination Required; Reduction of Retirement Allowance on Account of Gainful Employment.

Section 38.34 - Disability Retirant; Reinstatement to Service, Service Credits Allowable.

Section 38.35 - Contribution of 3% of Employee Compensation to Funding Account; "Funding Account" Defined; Refund of Amounts Contributed Under Subsection (1).

Section 38.35a - Election Under MCL 38.50a; Contribution.

Section 38.36, 38.37 - Repealed. 1974, Act 216, Imd. Eff. July 19, 1974.

Section 38.38 - Annual Level Percent of Payroll Contribution Rate; Determination; Basis; Report; Computation; Amortization of Unfunded Actuarial Accrued Liability; Annual Appropriation to Retirement System; Transfer of Funds; Certification; Differenc...

Section 38.39 - Repealed. 1982, Act 316, Imd. Eff. Oct. 18, 1982.

Section 38.39a - Reserves for Retirement Allowances; Legislative Determination of Funds From Which Appropriations Made.

Section 38.40 - Allowances, Benefits, and Other Rights; Exemption From Taxation; Subject to Tax Beginning January 1, 2012; Subject to Public Employee Retirement Benefit Protection Act.

Section 38.41 - Correction of Errors in Payment of Retirement Allowances.

Section 38.42 - Retirement System Records; Falsification, Penalty.

Section 38.43 - Repealed. 1997, Act 148, Eff. Jan. 30, 1998.

Section 38.44 - Rights, Privileges, and Benefits of Vested Employee.

Section 38.44a - Member Employed by State Judicial Council.

Section 38.45 - Definitions.

Section 38.46 - Retirement or Separation From Employment of Supplemental Member With Supplemental Early Retirement Allowance; Conditions; Determination of Eligibility.

Section 38.47 - Temporary Straight Life Supplemental Early Retirement Allowance; Payment; Computation; Electing Optional Form of Payment.

Section 38.47a - Report.

Section 38.48 - Conservation Officers.

Section 38.49 - Administration of Retirement System as Qualified Pension Plan Under Internal Revenue Code; Requirements and Benefit Limitations; Qualified Military Service.

Section 38.50 - Election to Terminate Participation in Tier 1 and to Participate in Tier 2; Irrevocability; Termination of Employment; Reemployment of Deferred or Former Nonvested Member; Method of Election; Signature of Spouse; Waiver; Election Subj...

Section 38.50a - Election to Continue Receiving Credit for Future Service and Compensation; Designation; Failure to Make Election; Rescission; Reemployment of Former Nonvested Member; "Attainment Date" Defined.

Section 38.51 - Transfer of Lump Sum Amount.

Section 38.52 - Calculation of Accrued Cost Savings for Each Fiscal Year.

Section 38.53 - Meanings of Words and Phrases; Definitions; a to C.

Section 38.54 - Definitions; E to H.

Section 38.55 - Definitions; P to Y.

Section 38.56 - State Treasurer; Powers and Duties.

Section 38.57 - Hearing.

Section 38.58 - Investment of Employer and Employee Contributions and Earnings; Direction by Participant.

Section 38.59 - Payment of Administrative Expenses.

Section 38.60 - Other Public Sector Retirement Benefits Plan; Participation.

Section 38.61 - Election by Elected or Appointed Official.

Section 38.62 - Transfer of Amount; Crediting and Charging Participant Account.

Section 38.63 - Contributions by Employer and Participant.

Section 38.63a - Tier 2 and Tax-Deferred Accounts; Terms and Conditions.

Section 38.64 - Tier 2; Vesting Requirements.

Section 38.65 - Crediting Years of Service Accrued.

Section 38.66 - Refund Beneficiary.

Section 38.67 - Distributions of Accumulated Balance.

Section 38.67a - Duty Disability Retirement Allowance; Supplemental Benefit; Health Insurance Coverage; Exception.

Section 38.68 - Health Insurance Coverage.

Section 38.68a - Appropriation Amount; Purpose; Work Project; Estimated Completion Date.

Section 38.68b - Participant Employed on or After January 1, 2012 or Making Election Under Subsection (5) or (6); Health Insurance Coverage; Contribution to Tax-Deferred Account; Opt-Out; Calculation of Amount Under Subsection (7) and Adjustment Unde...

Section 38.68c - Employment of Retiree Receiving Retirement Allowance; Stopping Retirement Payment; Applicability; "Employed by This State" Defined; Coordination of Benefits Provision; Exceptions to Subsection (1); Definitions.

Section 38.68d - Administration of Changes; Appropriation.

Section 38.68e - Appropriation.

Section 38.69 - Exemptions From Taxation; Subject to Public Employee Retirement Benefit Protection Law; Right of Setoff to Recover Overpayments; Satisfaction of Claims Arising From Embezzlement or Fraud; Correction of Errors in Records and Actions.