Retirement: state employees; annual retirement allowance increase; eliminate cap. Amends sec. 20g of 1943 PA 240 (MCL 38.20g).

This bill modifies the Michigan State Employees' Retirement Act to remove the existing $300 annual cap on cost-of-living increases for retirees. Under the new provisions, the annual increase for each retiree will be calculated as 3% of their allowance, but it will no longer be limited to a maximum of $300. The legislation also adjusts how supplemental payments are distributed by changing the interest rate assumptions and the method for calculating distribution units. These changes directly affect current and future state retirees and their beneficiaries by potentially increasing the amount of their annual retirement adjustments.