Section 38.1205. Notification when allowance is terminated or reduced.

(1) Except in the case of death of the retirant or retirement allowance beneficiary, where the system decides to terminate a monthly age and service or disability benefit granted pursuant to the  provisions  of section 81, 86, or 87 of  the act, the retirant or retirement allowance beneficiary shall be notified in advance of the decision to terminate and the reasons therefor, and shall receive a statement of rights under the  act  and applicable rules to appeal such decision.  If benefits granted under

section 89 or 90 of the act are to be terminated, the decision of the system may be implemented 20 days following notice to the retirement allowance beneficiary. If benefits granted pursuant to section 81, 86, or 87 of the act are to be terminated, the benefits shall be continued if the retirant or  retirement allowance  beneficiary  requests  a hearing under R 38.1202 pending the conclusion of the hearing  and  action  of  the board subsequent to  a recommendation for decision by the hearing officer.  Following the decision of the board, its decision may be implemented. If the retirant or retirement allowance beneficiary dies, a decision of the system may be implemented. As set forth in section 88 of the act, the decision of  the  system  may  be implemented  if  a disability retirant  refuses  to  submit  to  a  medical examination.

(2) Except in the case of death of the retirant or retirement allowance beneficiary, where the system decides to reduce, by more than 10%, a monthly age and service or disability benefit pursuant to the provisions of section 81, 86, or 87 of the act, the retirant or  retirement  allowance beneficiary

shall be notified in advance of the decision to reduce by more than 10% and the reasons therefor, and shall receive a statement of rights under the act and applicable rules to appeal such decision.  If  benefits  granted  under section 89 or 90 of the act are to be reduced by more than 10%, the decision of the system may be implemented 20 days following notice to the retirement allowance beneficiary. If benefits granted pursuant to section 81, 86, or 87 of the act are to be reduced by more than 10%, the benefits  shall   be continued if the retirant or  retirement   allowance  beneficiary   requests a hearing under R 38.1202 pending the conclusion of the hearing and action of the board subsequent to a  recommendation  for  decision  by  the hearing  officer. Following the decision of the board, its decision may be implemented.

History: 1985 AACS; 2004 AACS.