May 17, 2016, Introduced by Reps. VerHeulen, Canfield, LaGrand and Hoadley and referred to the Committee on Appropriations.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 68c (MCL 38.68c), as amended by 2015 PA 20.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 68c. (1) Except as otherwise provided in this section, a
retirant who is receiving a retirement allowance under this act and
is employed by this state beginning after 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
stop 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 directly or
indirectly employed by this state on October 1, 2007 while he or
she remains in the position held by the retirant on October 1,
2007. As used in this subsection, "employed by this state" means
employed directly by this state as an employee, indirectly by this
state through a contractual arrangement with other parties, or by
engagement of the retirant by this state as an independent
contractor. This subsection does not apply to a retirant who is
engaged as an independent contractor on October 1, 2010 while the
retirant remains engaged in the same contract that was held by the
retirant on October 1, 2010 without amendment or extension.
(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 must 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 must 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 must 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 must be determined before the benefits provided under 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 technology,
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 to the state budget office and the department of
technology, management, and budget. The report must include the
name of the retirant, the capacity in which the retirant is
employed, and the total compensation paid to the retirant.
(e) The retirant retired after a bona fide termination.
(4) Subsection (1) does not apply to the appointment of a
retirant who retired after a bona fide termination and who was an
assistant attorney general as a special assistant attorney general
if the attorney general determines that, as a result of his or her
previous employment with this state, the retirant possesses
specialized expertise and experience necessary for the appointment
and that the appointment is the most cost-effective option for this
state.
(5) Until September 30, 2015, subsection (1) does not apply to
a retirant if all of the following apply:
(a) The retirant is hired to provide for the custody of
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 the pay is not more than 80% of the
maximum hourly wage granted to classified civil service employees
employed by the department of corrections to perform the same
duties as the retirant for the fiscal year during which the
retirant is employed.
(c) The retirant works no more than 1,040 hours in a 12-month
period of state employment.
(d) The retirant retired after a bona fide termination of
employment.
(6) Subsection (1) does not apply to a retirant if all of the
following apply:
(a) The department of attorney general contracts with the
retirant as a witness, expert, or consultant for litigation
involving this state. The contract must provide that the retirant's
service as a witness, expert, or consultant ends at the conclusion
of the litigation.
(b) The attorney general determines that, as result of the
retirant's previous employment with this state, the retirant
possesses specialized expertise and experience necessary for the
litigation and the contract is the most cost-effective option for
the state.
(c) The retirant retired after a bona fide termination of
employment.
(7) Subsection (1) does not apply to a retirant if all of the
following apply:
(a) The department of health and human services hires the
retirant as a psychiatrist to provide services to individuals in
psychiatric hospitals operated by the department of health and
human services.
(b) The department of health and human services determines
that, as a result of the retirant's previous employment with this
state, the retirant possesses specialized expertise and experience
necessary for the hiring of the retirant and that the hiring of the
retirant is the most cost-effective option for this state.
(c) The retirant retired before October 1, 2015 and after a
bona fide termination of employment.
(8) As used in subsection (7):
(a) "Psychiatric hospital" means that term as defined 100b of
the mental health code, 1974 PA 258, MCL 330.1100b.
(b) "Psychiatrist" means that term as defined section 100c of
the mental health code, 1974 PA 258, MCL 330.1100c.
(c) "Service" means that term as defined in section 100d of
the mental health code, 1974 PA 258, MCL 330.1100d.