SENATE BILL NO. 641 June 9, 1999, Introduced by Senators MC MANUS, A. SMITH, DE BEAUSSAERT and GOSCHKA and referred to the Committee on Appropriations. 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 1998 PA 85. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 91. (1) The retirement system shall pay the entire 2 monthly premium or membership or subscription fee for hospital, 3 medical-surgical, and sick care benefits for the benefit of a 4 retirant or retirement allowance beneficiary who elects coverage 5 in the plan authorized by the retirement board and the 6 department. 7 (2) The retirement system may pay up to the maximum of the 8 amount payable under subsection (1) toward the monthly premium 9 for hospital, medical-surgical, and sick care benefits for the 10 benefit of a retirant or retirement allowance beneficiary 11 enrolled in a group health insurance or prepaid service plan not 01498'99 KKR 2 1 authorized by the retirement board and the department, if 2 enrolled before June 1, 1975, for whom the retirement system on 3 July 18, 1983 was making a payment towards his or her monthly 4 premium. 5 (3) A retirant or retirement allowance beneficiary receiving 6 hospital, medical-surgical, and sick care benefits coverage under 7 subsection (1) or (2), until eligible for medicare, shall have an 8 amount equal to the cost chargeable to a medicare recipient for 9 part B of medicare deducted from his or her retirement 10 allowance. 11 (4) The retirement system shall pay 90% of the monthly pre- 12 mium or membership or subscription fee for dental, vision, and 13 hearing benefits for the benefit of a retirant or retirement 14 allowance beneficiary who elects coverage in the plan authorized 15 by the retirement board and the department. Payments shall begin 16 under this subsection upon approval by the retirement board and 17 the department of plan coverage and a plan provider. 18 (5) The retirement system shall pay up to 90% of the maximum 19 of the amount payable under subsection (1) toward the monthly 20 premium or membership or subscription fee for hospital, 21 medical-surgical, and sick care benefits coverage described in 22 subsections (1) and (2) for each health insurance dependent of a 23 retirant receiving benefits under subsection (1) or (2). Payment 24 shall not exceed 90% of the actual monthly premium or membership 25 or subscription fee. The retirement system shall pay 90% of the 26 monthly premium or membership or subscription fee for dental, 27 vision, and hearing benefits described in subsection (4) for the 01498'99 3 1 benefit of each health insurance dependent of a retirant 2 receiving benefits under subsection (4). Payment for health ben- 3 efits coverage for a health insurance dependent of a retirant 4 shall not be made after the retirant's death, unless the retirant 5 designated a retirement allowance beneficiary as provided in 6 section 85 and the dependent was covered or eligible for coverage 7 as a health insurance dependent of the retirant on the retirant's 8 date of death. Payment for health benefits coverage shall not be 9 made for a health insurance dependent after the later of the 10 retirant's death or the retirement allowance beneficiary's 11 death. Payment under this subsection and subsection (6) began 12 October 1, 1985 for health insurance dependents who on July 10, 13 1985 were covered by the hospital, medical-surgical, and sick 14 care benefits plan authorized by the retirement board and the 15 department. Payment under this subsection and subsection (6) for 16 other health insurance dependents shall not begin before 17 January 1, 1986. 18 (6) The payment described in subsection (5) shall also be 19 made for each health insurance dependent of a deceased member or 20 deceased duty disability retirant if a retirement allowance is 21 being paid to a retirement allowance beneficiary because of the 22 death of the member or duty disability retirant as provided in 23 section 43c(c), 89, or 90. Payment for health benefits coverage 24 for a health insurance dependent shall not be made after the 25 retirement allowance beneficiary's death. 26 (7) The payments provided by this section shall not be made 27 on behalf of a retiring section 82 deferred member or health 01498'99 4 1 insurance dependent of a deferred member having less than 21 full 2 years of attained credited service or the retiring deferred 3 member's retirement allowance beneficiary, and shall not be made 4 on behalf of a retirement allowance beneficiary of a deferred 5 member who dies before retiring. The retirement system shall 6 pay, on behalf of a retiring section 82 deferred member or health 7 insurance dependent of a deferred member or a retirement allow- 8 ance beneficiary of a deceased deferred member, either of whose 9 allowance is based upon not less than 21 years of attained cred- 10 ited service, 10% of the payments provided by this section, 11 increased by 10% for each attained full year of credited service 12 beyond 21 years, not to exceed 100%. This subsection applies to 13 any member who attains deferred status under section 82 after 14 October 31, 1980. 15 (8) Any retirant or retirement allowance beneficiary 16 excluded from payments under this section may participate in the 17 hospital, medical-surgical, and sick care benefits plan, the 18 dental plan, vision plan, or hearing plan, or any combination of 19 the plans described in this section in the manner prescribed by 20 the retirement system at his or her own cost. 21 (9) The hospital, medical-surgical, and sick care benefits 22 plan, dental plan, vision plan, and hearing plan that covers 23 retirants, retirement allowance beneficiaries, and health insur- 24 ance dependents pursuant to this section shall contain a coordi- 25 nation of benefits provision that provides all of the following: 26 (a) If the person covered under the hospital, 27 medical-surgical, and sick care benefits plan is also eligible 01498'99 5 1 for medicare or medicaid, or both, then the benefits under 2 medicare or medicaid, or both, shall be determined before the 3 benefits of the hospital, medical-surgical, and sick care bene- 4 fits plan provided pursuant to this section. 5 (b) If the person covered under any of the plans provided by 6 this section is also covered under another plan that contains a 7 coordination of benefits provision, the benefits shall be coordi- 8 nated as provided by the coordination of benefits act, 1984 PA 9 64, MCL 550.251 to 550.255. 10 (c) If the person covered under any of the plans provided by 11 this section is also covered under another plan that does not 12 contain a coordination of benefits provision, the benefits under 13 the other plan shall be determined before the benefits of the 14 plan provided pursuant to this section. 15 (10) For purposes of this section: 16 (a) "Health insurance dependent" means any of the 17 following: 18 (i) The spouse of the retirant or the surviving spouse to 19 whom the retirant or deceased member was married at the time of 20 the retirant's or deceased member's death. 21 (ii) An unmarried child, by birth or adoption, of the retir- 22 ant or deceased member, until December 31 of the calendar year in 23 which the child becomes 19 years of age. 24 (iii) An unmarried child, by birth or adoption, of the 25 retirant or deceased member, until December 31 of the calendar 26 year in which the child becomes 25 years of age, who is enrolled 27 as a full-time student, and who is or was at the time of the 01498'99 6 1 retirant's or deceased member's deatha50% OR MORE FINANCIALLY 2 dependentofON the retirant or deceased member asdefined in3section 152 of the internal revenue codeDETERMINED PURSUANT TO 4 R 38.1130 OF THE MICHIGAN ADMINISTRATIVE CODE. 5 (iv) An unmarried child, by birth or adoption, of the retir- 6 ant or deceased member who is incapable of self-sustaining 7 employment because of mental or physical disability, and who is 8 or was at the time of the retirant's or deceased member's death 9a50% OR MORE FINANCIALLY dependentofON the retirant or 10 deceased member asdefined in section 152 of the internal reve-11nue codeDETERMINED PURSUANT TO R 38.1130 OF THE MICHIGAN ADMIN- 12 ISTRATION CODE. 13 (v) The parents of the retirant or deceased member, or the 14 parents of his or her spouse, who are residing in the household 15 of the retirant or retirement allowance beneficiary. 16 (b) "Medicaid" means benefits under the federal medicaid 17 program established under title XIX of the social security act, 18 chapter 531, 49 Stat. 620, 42 U.S.C. 1396 to 1396f, 1396g-1 to 19 1396r-6, and 1396r-8 to 1396v. 20 (c) "Medicare" means benefits under the federal medicare 21 program established under title XVIII of the social security act, 22 chapter 531, 49 Stat. 620, 42 U.S.C. 1395 to 1395b, 1395b-2, 23 1395b-6 to 1395b-7, 1395c to 1395i, 1395i-2 to 1395i-5, 1395j to 24 1395t, 1395u to 1395w, 1395w-2 to 1395w-4, 1395w-21 to 1395w-28, 25 1395x to 1395yy, and 1395bbb to 1395ggg. 01498'99 Final page. 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