SB-0696, As Passed Senate, December 7, 2017
November 30, 2017, Introduced by Senators STAMAS and MARLEAU and referred to the Committee on Michigan Competitiveness.
A bill to amend 1846 RS 16, entitled
"Of the powers and duties of townships, the election and duties of
township officers, and the division of townships,"
by amending section 110b (MCL 41.110b), as amended by 1999 PA 209.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
A Subject to the
protecting local government
retirement and benefits act, a township may do all of the
(a) Establish a retirement system for its employees and
provide for financing, funding, and the payment of benefits in the
same manner and to the same extent as permitted counties under
12a of 1851 PA 156,
MCL 46.12A, MCL
46.12a, or make
contracts of insurance with an insurance company authorized to
transact business within this state.
(b) Make arrangements with a prepayment plan authorized to
the this state, insuring and covering 1 or
more of the following under policies of group insurance or
prepayment plan contracts, or both, covering life, accident, dental
care, vision care, health, hospitalization, and medical and
surgical service and expense insurance:
(i) Elected or appointed township officers and employees, and
dependents of those officers or those employees.
(ii) Any classes of elected or appointed township officers and
employees, and dependents of those officers or those employees.
(iii) Any classes of retired township officers and employees,
and dependents of those officers or those employees.
(c) Establish a cafeteria plan authorized under section 125 of
the internal revenue code of 1986, 26 USC 125, for its elected or
appointed officers and employees, any classes of elected or
appointed officers and employees, and dependents of those officers
and those employees. As used in this subdivision, "cafeteria plan"
means that term as defined in section 125 of the internal revenue
code of 1986, 26 USC 125.
(d) Contract with a company that grants annuities or pensions
for the pensioning of the officers and employees and for these
purposes pay any part of the premiums or charges for insurance,
prepayment plan coverage, annuities, or pensions.
(e) Offer any other employment benefit authorized by state or
(2) Notwithstanding any other provision of law, the proper
disbursing officer of the township may deduct from an officer's or
employee's pay, salary, or compensation that part of the premium or
charge that is payable by the officer or employee.
(3) A contract of insurance or arrangement for prepayment plan
coverage procured under this section may provide that each elected
or appointed officer or employee becoming eligible for insurance or
coverage becomes insured or covered automatically when he or she
becomes eligible, subject to any actively-at-work requirements or
effective retirement dates specified in the contract or
arrangement. If the insurance or coverage under the contract or
arrangement requires contributions from the individual, any
individual desiring not to be insured or covered under the contract
or arrangement shall give written notice to his or her employing
office that he or she desires not to be insured or covered, and if
the notice is received before the individual has become insured or
covered under the contract or arrangement, he or she shall not be
insured or covered. If the notice is received after the individual
has become insured or covered, his or her insurance or coverage
under the contract or arrangement shall cease as provided for in
the contract or arrangement.
This Subject to the protecting
local government retirement
and benefits act, this section does not affect the validity of a
retirement program or contract of group insurance or arrangement
for prepayment plan coverage entered into by the township before
June 20, 1989.
(5) The authority given under this section is in addition to
and not in derogation of any power existing in the township under
the laws of this state. A township may exercise the powers granted
under this section by ordinance without the necessity of amending
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 686
of the 99th Legislature is enacted into law.