HB-4248, As Passed House, March 5, 2009

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4248

 

February 11, 2009, Introduced by Reps. Smith, Lahti, Warren, Bauer, Robert Jones, Gregory, Miller and Dean and referred to the Committee on Judiciary.

 

     A bill to amend 1943 PA 240, entitled

 

"State employees' retirement act,"

 

by amending section 68c (MCL 38.68c), as added by 2007 PA 95.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 68c. (1) Except as otherwise provided in this subsection

 

section, a retirant who is receiving a retirement allowance under

 

this act and is employed by this state beginning on or after the

 

effective date of this section October 1, 2007 agrees to forfeit

 

his or her right to receive that retirement allowance during this

 

period of state employment. The retirement system shall cease

 

payment of the retirement allowance to a retirant described in this

 

subsection during this period of state employment and shall

 

reinstate payment of the retirement allowance without recalculation

 


when the period of state employment ceases. This subsection does

 

not apply to a retirant who is employed by this state on the day

 

before the effective date of this section September 30, 2007 so

 

long as he or she remains in the position held by the retirant on

 

the day before the effective date of this section September 30,

 

2007. As used in this subsection, "employed by this state" means

 

employed directly by this state as an employee or indirectly by

 

this state through a contractual arrangement with other parties.

 

     (2) A hospital, medical-surgical, and sick care benefits plan,

 

dental plan, vision plan, and hearing plan that covers retirants,

 

retirant allowance beneficiaries, former qualified participants,

 

and health benefit dependents under this act shall contain a

 

coordination of benefits provision that provides all of the

 

following:

 

     (a) If the person covered under any of the plans is also

 

eligible for medicare, then the benefits under medicare shall be

 

determined before the health insurance benefits under this act.

 

     (b) If a person covered under any of the plans provided by

 

this act is also covered under another plan that contains a

 

coordination of benefits provision, the benefits shall be

 

coordinated as provided in 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 act 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 provided pursuant to

 

this act.

 


     (3) Subsection (1) does not apply to a retirant if all of the

 

following apply:

 

     (a) The retirant is hired to provide health care services to

 

individuals under the jurisdiction of the department of

 

corrections.

 

     (b) The retirant is hired in a position that is limited in

 

term, no benefits are paid, and pay is on a per diem basis.

 

     (c) The department of corrections provides written notice to

 

the state budget office and the department of management and budget

 

that attempts have been made to fill the position through postings

 

and recruitment and that the position vacancy still exists.

 

     (d) The department of corrections reports the employment of a

 

retirant under this subsection within 30 days of employment of the

 

retirant. The report shall include the name of the retirant, the

 

capacity in which the retirant is employed, and the total

 

compensation paid to the retirant.