May 1, 2007, Introduced by Reps. Acciavatti and Palmer and referred to the Committee on Education.
A bill to amend 1980 PA 300, entitled
"The public school employees retirement act of 1979,"
by amending section 91 (MCL 38.1391), as amended by 2006 PA 617.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 91. (1) Except as otherwise provided in this section, the
retirement system shall pay the entire monthly premium or
membership or subscription fee for hospital, medical-surgical, and
sick care benefits for the benefit of a retirant or retirement
allowance beneficiary who elects coverage in the plan authorized by
the retirement board and the department. Upon the death of the
retirant, a retirement allowance beneficiary who became a
retirement allowance beneficiary under section 85(8) or (9) is not
a health insurance dependent and is not entitled to health benefits
under this section except as provided in subsection (10).
(2) The retirement system may pay up to the maximum of the
amount payable under subsection (1) toward the monthly premium for
hospital, medical-surgical, and sick care benefits for the benefit
of a retirant or retirement allowance beneficiary enrolled in a
group health insurance or prepaid service plan not authorized by
the retirement board and the department, if enrolled before June 1,
1975, for whom the retirement system on July 18, 1983 was making a
payment towards his or her monthly premium.
(3) A retirant or retirement allowance beneficiary receiving
hospital, medical-surgical, and sick care benefits coverage under
subsection (1) or (2), until eligible for medicare, shall have an
amount equal to the cost chargeable to a medicare recipient for
part B of medicare deducted from his or her retirement allowance.
(4) The retirement system shall pay 90% of the monthly premium
or membership or subscription fee for dental, vision, and hearing
benefits for the benefit of a retirant or retirement allowance
beneficiary who elects coverage in the plan authorized by the
retirement board and the department. Payments shall begin under
this subsection upon approval by the retirement board and the
department of plan coverage and a plan provider.
(5) The retirement system shall pay up to 90% of the maximum
of the amount payable under subsection (1) toward the monthly
premium or membership or subscription fee for hospital, medical-
surgical, and sick care benefits coverage described in subsections
(1) and (2) for each health insurance dependent of a retirant
receiving benefits under subsection (1) or (2). Payment shall not
exceed 90% of the actual monthly premium or membership or
subscription fee. The retirement system shall pay 90% of the
monthly premium or membership or subscription fee for dental,
vision, and hearing benefits described in subsection (4) for the
benefit of each health insurance dependent of a retirant receiving
benefits under subsection (4). Payment for health benefits coverage
for a health insurance dependent of a retirant shall not be made
after the retirant's death, unless the retirant designated a
retirement allowance beneficiary as provided in section 85 and the
dependent was covered or eligible for coverage as a health
insurance dependent of the retirant on the retirant's date of
death. Payment for health benefits coverage shall not be made for a
health insurance dependent after the later of the retirant's death
or the retirement allowance beneficiary's death. Payment under this
subsection and subsection (6) began October 1, 1985 for health
insurance dependents who on July 10, 1985 were covered by the
hospital, medical-surgical, and sick care benefits plan authorized
by the retirement board and the department. Payment under this
subsection and subsection (6) for other health insurance dependents
shall not begin before January 1, 1986.
(6) The payment described in subsection (5) shall also be made
for each health insurance dependent of a deceased member or
deceased duty disability retirant if a retirement allowance is
being paid to a retirement allowance beneficiary because of the
death of the member or duty disability retirant as provided in
section 43c(c), 89, or 90. Payment for health benefits coverage for
a health insurance dependent shall not be made after the retirement
allowance beneficiary's death.
(7) The payments provided by this section shall not be made on
behalf of a retiring section 82 deferred member or health insurance
dependent of a deferred member having less than 21 full years of
attained credited service or the retiring deferred member's
retirement allowance beneficiary, and shall not be made on behalf
of a retirement allowance beneficiary of a deferred member who dies
before
retiring. The Except as
otherwise provided in subsection
(10), the retirement system shall pay, on behalf of a retiring
section 82 deferred member or health insurance dependent of a
deferred member or a retirement allowance beneficiary of a deceased
deferred member, either of whose allowance is based upon not less
than 21 years of attained credited service, 10% of the payments
provided by this section, increased by 10% for each attained full
year of credited service beyond 21 years, not to exceed 100%. This
subsection applies to any member who attains deferred status under
section 82 after October 31, 1980.
(8) Any retirant or retirement allowance beneficiary excluded
from payments under this section may participate in the hospital,
medical-surgical, and sick care benefits plan, the dental plan,
vision plan, or hearing plan, or any combination of the plans
described in this section in the manner prescribed by the
retirement system at his or her own cost.
(9) The hospital, medical-surgical, and sick care benefits
plan, dental plan, vision plan, and hearing plan that covers
retirants, retirement allowance beneficiaries, and health insurance
dependents pursuant to this section shall contain a coordination of
benefits provision that provides all of the following:
(a) If the person covered under the hospital, medical-
surgical, and sick care benefits plan is also eligible for medicare
or medicaid, or both, then the benefits under medicare or medicaid,
or both, shall be determined before the benefits of the hospital,
medical-surgical, and sick care benefits plan provided pursuant to
this section.
(b) If the person covered under any of the plans provided by
this section is also covered under another plan that contains a
coordination of benefits provision, the benefits shall be
coordinated as provided by the coordination of benefits act, 1984
PA 64, MCL 550.251 to 550.255.
(c) If the person covered under any of the plans provided by
this section is also covered under another plan that does not
contain a coordination of benefits provision, the benefits under
the other plan shall be determined before the benefits of the plan
provided pursuant to this section.
(10) This subsection only applies to a retirant who elects to
purchase service credit on or after July 1, 2007. A retirant who
elects to purchase service credit after July 1, 2007 shall have his
or her benefits under this section determined by the retirement
system in the manner prescribed in this subsection. The retirement
system shall first determine whether the purchase of service credit
allowed the retirant to retire earlier than the retirant would have
retired without the purchase of service credit. The retirement
system shall then determine the difference between the retirant's
effective date and the effective date that the retirant would have
retired if the retirant had not purchased the service credit. The
retirant who is subject to this subsection shall not be eligible
for health care benefits under this section until the effective
date that the retirant would have retired if the retirant had not
purchased the service credit.
(11) (10)
A surviving spouse selected as a
retirement
allowance beneficiary under section 85(8) or (9) may elect the
insurance coverages provided in this section provided that payment
for the elected coverages is the responsibility of the surviving
spouse and is paid in a manner prescribed by the retirement system.
(12) (11)
For purposes of this section:
(a) "Health insurance dependent" means any of the following:
(i) Except as provided in subsection (1), the spouse of the
retirant or the surviving spouse to whom the retirant or deceased
member was married at the time of the retirant's or deceased
member's death.
(ii) An unmarried child, by birth or adoption, of the retirant
or deceased member, until December 31 of the calendar year in which
the child becomes 19 years of age.
(iii) An unmarried child, by birth or adoption, of the retirant
or deceased member, until December 31 of the calendar year in which
the child becomes 25 years of age, who is enrolled as a full-time
student, and who is or was at the time of the retirant's or
deceased member's death a dependent of the retirant or deceased
member as defined in section 152 of the internal revenue code.
(iv) An unmarried child, by birth or adoption, of the retirant
or deceased member who is incapable of self-sustaining employment
because of mental or physical disability, and who is or was at the
time of the retirant's or deceased member's death a dependent of
the retirant or deceased member as defined in section 152 of the
internal revenue code.
(v) The parents of the retirant or deceased member, or the
parents of his or her spouse, who are residing in the household of
the retirant or retirement allowance beneficiary.
(vi) An unmarried child who is not the child by birth or
adoption of the retirant or deceased member but who otherwise
qualifies to be a health insurance dependent under subparagraph
(ii), (iii), or (iv), if the retirant or deceased member is the legal
guardian of the unmarried child.
(b) "Medicaid" means benefits under the federal medicaid
program established under title XIX of the social security act,
chapter 531, 49 Stat. 620, 42 USC 1396 to 1396f, 1396g-1 to 1396r-
6, and 1396r-8 to 1396v.
(c) "Medicare" means benefits under the federal medicare
program established under title XVIII of the social security act,
chapter 531, 49 Stat. 620, 42 USC 1395 to 1395b, 1395b-2, 1395b-6
to 1395b-7, 1395c to 1395i, 1395i-2 to 1395i-5, 1395j to 1395t,
1395u to 1395w, 1395w-2 to 1395w-4, 1395w-21 to 1395w-28, 1395x to
1395yy, and 1395bbb to 1395ggg.
Enacting section 1. This amendatory act takes effect January
1, 2009.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4107(request no.
00300'07) of the 94th Legislature is enacted into law.