HB-6315, As Passed House, November 10, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 6315

                                                                             A bill to amend 1992 PA 234, entitled                                             

"The judges retirement act of 1992,"                                        

by amending sections 305 and 509 (MCL 38.2305 and 38.2509),                 

section 305 as amended by 2002 PA 95.                                       

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 305.  (1) Each member, upon taking office and so long                  

2   as he or she remains in office, shall make contributions to the             

3   retirement system according to the applicable plan member                   

4   classification as follows:                                                  

5       (a) A plan 1 member or a plan 2 member shall contribute 5% of               

6   the member's compensation.  From this contribution, the                     

7   retirement system shall deposit an amount equal to 2.0% of the              

8   member's compensation into the reserve for health benefits for              

9   hospital and medical-surgical and sick care benefits as provided            

10  in section 509.                                                             

1       (b) A plan 3a member, a plan 3b member, or a plan 5 member                  

2   shall contribute  3.5% 9.0% of the member's compensation.                  

3   Beginning January 1, 2005, from this contribution, the retirement           

4   system shall deposit an amount equal to 5.5% of the member's                

5   compensation into the reserve for health benefits for hospital              

6   and medical-surgical and sick care benefits as provided in                  

7   section 509.

8       (c) A plan 3c member, a plan 4 member, a plan 6 member, or a                

9   plan 7 member shall contribute  7% 12.5% of the member's                   

10  compensation.  However, a plan 6 member shall not contribute more           

11  than $980.00 annually.  Beginning January 1, 2005, from this                

12  contribution, the retirement system shall deposit an amount equal           

13  to 5.5% of the member's compensation into the reserve for health            

14  benefits for hospital and medical-surgical and sick care benefits           

15  as provided in section 509.

16      (2) The retirement board shall determine the manner in which                

17  member contributions are paid.  Except as otherwise provided in             

18  this section, the retirement system shall credit member                     

19  contributions when received to the reserve for member                       

20  contributions.                                                              

21      (3) Upon written notice from the executive secretary to the                 

22  state court administrator, the state treasurer shall withhold               

23  payment of the amount due from the salary standardization payment           

24  payable to a county or district control unit for member                     

25  contributions that are not received by the retirement system                

26  within 60 days after the due date.                                          

27      Sec. 509.  (1) The retirement system shall pay the premium                  

1   for hospital and medical-surgical and sick care benefits for a              

2   retirant who, as a member, served after January 1, 1983 as a                

3   justice of the supreme court, judge of the court of appeals, or a           

4   state official, or for his or her retirement allowance                      

5   beneficiary who elects coverage in the state group health                   

6   insurance plan, to the same extent as is provided for retirants             

7   and retirement allowance beneficiaries of the state employees'              

8   retirement system created by the state employees' retirement act,           

9   Act No. 240 of the Public Acts of 1943, being section 38.1 to              

10  38.48 of the Michigan Compiled Laws 1943 PA 240, MCL 38.1 to               

11  38.69.                                                                      

12      (2) The retirement system shall pay the premium under                       

13  subsection (1) only if section 305(l)(a) requires member                    

14  contributions for hospital and medical-surgical and sick care               

15  benefits.                                                                   

16  (3) Beginning January 1, 2005, a member who is a judge and in               

17  active service on that date and who has at least 15 years of                

18  continuous service may elect coverage in the state group health             

19  insurance plan by filing a written election request with the                

20  retirement board no later than February 28, 2005 stating his or             

21  her intent to elect coverage in the state group health insurance            

22  plan.  A member who is a judge or who becomes a judge on or after           

23  January 1, 2005 may elect coverage in the state group health                

24  insurance plan after the member has performed 15 years of active            

25  service.  The election shall be made for members who are judges             

26  or retirement allowance beneficiaries who are spouses only.  If a           

27  member qualifies for benefits under this subsection and makes an            

1   election, the retirement system shall pay the premium for                   

2   hospital and medical-surgical and sick care benefits for the                

3   member or his or her retirement allowance beneficiary who is a              

4   spouse to the same extent as provided for retirants and                     

5   retirement allowance beneficiaries of the state employees                   

6   retirement system created by the state employees retirement act,            

7   1943 PA 240, MCL 38.1 to 38.69.