Substitute For
SENATE BILL NO. 592
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 68c (MCL 38.68c), as amended by 2020 PA 18.
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 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, 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
550.254.
(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 a 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 retirant is hired by the department of natural
resources for active wildland fire suppression.
(b) There is an immediate continual need for
prequalified, skilled, and trained personnel to address wildfire suppression.
(c) The retirant works no more than 600 hours in a
fiscal year.
(d) The retirant is hired in a position that is
limited in term, no benefits are paid, and the pay is not more than 70% of the
maximum hourly wage granted to classified civil service employees employed by
the department of natural resources to perform the same duties as the retirant
for the fiscal year during which the retirant is employed.
(e) The department of natural resources reports the
employment of a retirant under this subsection within 30 days after employment
and within 30 days after termination of employment or within 30 days after the
end of each fiscal year, whichever occurs first, to the state budget office and
the department of technology, management, and budget. The report required under
this subdivision must include the name of the retirant, the capacity in which
the retirant is employed, the equivalent civil service position in which the
retirant is employed, the hourly wage paid to the retirant, and the total hours
of service provided by the retirant for the fiscal year. The department of
natural resources may submit a report required under this subdivision
electronically.
(f) By March 1 of each year, the department of natural
resources submits a summary of all the reports required under subdivision (e)
for the preceding fiscal year to the house of representatives and senate
appropriations subcommittees that consider the budget of the department of
natural resources, the state budget office, the house and senate fiscal
agencies, and the department of technology, management, and budget. The
department of natural resources may submit a summary required under this
subdivision electronically.
(8) Subsection (1) does not apply to a retirant if all
of the following apply:
(a) The retirant is employed by the legislative
service bureau as legal counsel through a contractual arrangement.
(b) The legislative council administrator 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 legislative service bureau reports the
employment of a retirant under this subsection within 30 days after employment
and within 30 days after termination of employment to the department of
technology, management, and budget, office of retirement services. The
legislative service bureau may submit a report required under this subdivision
electronically.
(9) 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 mental health 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.
(d) The department of health and human services
reports the employment of a retirant under this subsection within 30 days after
employment and within 30 days after termination of employment or within 30 days
after the end of each fiscal year, whichever occurs first, to the state budget
office and the department of technology, management, and budget. The report
required under this subdivision must include the name of the retirant, the
capacity in which the retirant is employed, the equivalent civil service
position in which the retirant is employed, the hourly wage paid to the
retirant, and the total hours of service provided by the retirant for the
fiscal year. The department of health and human services may submit a report
required under this subdivision electronically.
(e) By March 1 of each year, the department of health
and human services submits a summary of all the reports required under
subdivision (d) for the preceding fiscal year to the house of representatives
and senate appropriations subcommittees that consider the budget of the
department of health and human services, the state budget office, the house and
senate fiscal agencies, and the department of technology, management, and
budget. The department of health and human services may submit a summary
required under this subdivision electronically.
(10) Until September 30, 2023, 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 mental health professional other than a psychiatrist to
provide mental health services to individuals in psychiatric hospitals operated
by the department of health and human services.
(b) The retirant retired before October 1, 2015 and
after a bona fide termination of employment.
(c) 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.
(d) The department of health and human services
reports the employment of a retirant under this subsection within 30 days after
employment and within 30 days after termination of employment or within 30 days
after the end of each fiscal year, whichever occurs first, to the state budget
office and the department of technology, management, and budget. The report
required under this subdivision must include the name of the retirant, the
capacity in which the retirant is employed, the equivalent civil service
position in which the retirant is employed, the hourly wage paid to the
retirant, and the total hours of service provided by the retirant for the
fiscal year. The department of health and human services may submit a report
required under this subdivision electronically.
(e) By March 1 of each year, the department of health
and human services submits a summary of all the reports required under
subdivision (d) for the preceding fiscal year to the house of representatives
and senate appropriations subcommittees that consider the budget of the department
of health and human services, the state budget office, the house and senate
fiscal agencies, and the department of technology, management, and budget. The
department of health and human services may submit a summary required under
this subdivision electronically.
(11) Subsection (1) does not apply to
a retirant if all of the following apply:
(a) The retirant retired from the
department of corrections.
(b) The retirant is hired indirectly
by this state through a contractual arrangement with another party providing
telecommunications services to the department of corrections for the primary
purpose of collecting or analyzing intelligence generated within the department
of corrections.
(c) The retirant has been retired for
at least 30 days.
(d) The department of corrections
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 to complete the tasks under subdivision (b).
(e) The department of corrections
reports the employment of a retirant under this subsection within 30 days after
employment and within 30 days after termination of employment or within 30 days
after the end of each fiscal year, whichever occurs first, to the state budget
office and the office of retirement services. The report required under this
subdivision must include the name of the retirant and the capacity in which the
retirant is employed. The department of corrections may submit a report
required under this subdivision electronically.
(12) (11) As used in this section:
(a) "Mental health professional" means that
term as defined in section 100b of the mental health code, 1974 PA 258, MCL
330.1100b.
(b) "Mental health service" means service as
that term as defined in section 100d of the mental health code, 1974 PA 258,
MCL 330.1100d.
(c) "Psychiatric hospital" means that term
as defined in section 100b of the mental health code, 1974 PA 258, MCL
330.1100b.
(d) "Psychiatrist" means that term as
defined in section 100c of the mental health code, 1974 PA 258, MCL 330.1100c.