Michigan Compiled Laws

Mich. Comp. Laws § 38.1387 (2026)

Duty disability retirement allowance; requirements; computation; effective date; service credit; adjustment.

✓ current as of July 2026

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THE PUBLIC SCHOOL EMPLOYEES RETIREMENT ACT OF 1979

Act 300 of 1980

38.1387 Duty disability retirement allowance; requirements; computation; effective date; service credit; adjustment.

Sec. 87.

(1) A member whom the retirement board finds to have become totally and permanently disabled from any gainful employment by reason of personal injury or mental or physical illness while serving as an employee of that reporting unit shall receive a duty disability retirement allowance if all of the following requirements are met:

(a) The member has not met age and service requirements of section 81(1)(a) or (b) or, if the member first became a member on or after July 1, 2010, the member has not met age and service requirements of section 81c(1).

(b) The member is in receipt of weekly worker's disability compensation on account of employment by a reporting unit.

(c) The member or reporting unit makes written application to the retirement board not more than 12 months after the date the member terminated public school employment.

(d) The member undergoes an examination by 1 or more practicing physicians or medical officers designated by the retirement board who certify to the retirement board that the member is totally and permanently disabled for performing the duties for the member's position for which the member is qualified by reason of training, or experience, or both.

(2) The member's duty disability retirement allowance shall be computed pursuant to section 84. The effective date of the duty disability retirant's allowance shall be the first of the month following the month in which the member terminates employment and is in receipt of weekly worker's disability compensation. The years of service credit used in computing the retirant's duty disability retirement allowance shall not be less than 10 years. If the member has less than 5 consecutive years of credited service, the average of the member's annual compensation shall be used.

(3) Upon recovery and return to reporting unit service or upon termination of the statutory period for the payment of a disability retirant's worker's disability compensation, if any, arising on account of the retirant's reporting unit service, the retirant shall be given service credit for the period and the retirant's disability retirement allowance shall be adjusted to include the additional credit.

History: 1980, Act 300, Imd. Eff. Oct. 31, 1980 ;-- Am. 2010, Act 75, Imd. Eff. May 19, 2010

Compiler's Notes:

Enacting section 1 of Act 75 of 2010 provides:

"Enacting section 1. 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."

PopularName Notes:

Act 300

Notes of Decisions

Cited in 4 cases, 1996–1998 · leading case: Adrian Sch. Dist. v. Michigan Pub. Sch. Employees' Ret. Sys., 582 N.W.2d 767 (Mich. 1998).

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Adrian Sch. Dist. v. Michigan Pub. Sch. Employees' Ret. Sys., 582 N.W.2d 767 (Mich. 1998). · cites it 4× “§ 38.1387; M.S.A. § 15.893(197) directs that employees will receive service credit for periods off work while receiving worker's compensation payments if, after becoming totally and permanently disabled because of a work-related injury, the member recovers from the disability…”

Tyler v. Livonia Pub. Schs., 561 N.W.2d 390 (Mich. Ct. App. 1996). “893(196), which both parties contend is the dispositive provision in this case, nor the “duty disability retirement allowance” provision of § 87 of the PSERA, MCL 38.1387; MSA 15.893(197), has been amended since 1980.”

Sch. Dist. for the City of Adrian v. Michigan Pub. Sch. Employees' Ret. Sys., 556 N.W.2d 524 (Mich. Ct. App. 1996). “First, MCL 38.1387; MSA 15.893(197) provides that a member who becomes totally and permanently disabled from a work-related injury may receive service credit for the time that the member is injured and receives worker’s compensation benefits if the member recovers and returns to…”

City of Adrian Sch. Dist. v. Pub. Sch. Employes'Ret. Sys., 556 N.W.2d 524 (Mich. Ct. App. 1996). “§ 38.1387; M.S.A. § 15.893(197) provides that a member who becomes totally and permanently disabled from a work-related injury may receive service credit for the time that the member is injured and receives worker's compensation benefits if the member recovers and returns to…”

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