HOUSE BILL No. 4072

 

January 22, 2009, Introduced by Rep. Meadows and referred to the Committee on Judiciary.

 

     A bill to amend 1943 PA 240, entitled

 

"State employees' retirement act,"

 

by amending section 20d (MCL 38.20d), as amended by 2002 PA 93.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 20d. (1) On and after July 1, 1974 and before October 1,

 

2009, hospitalization and medical coverage insurance premium

 

payable by any retirant or his or her beneficiary and his or her

 

dependents under any group health plan authorized by the Michigan

 

civil service commission and the department of management and

 

budget shall be paid by the retirement board from the health

 

insurance reserve fund created in section 11. On and after October

 

1, 2009, hospitalization and medical coverage insurance premium

 

payable by any retirant or his or her beneficiary and his or her


 

dependents under a group health plan authorized by the civil

 

service commission, the retirement board, and the department of

 

management and budget shall be paid by the retirement board from

 

the health insurance reserve fund created in section 11. On and

 

after October 1, 2009, the group health plan shall be authorized by

 

the civil service commission, the retirement board, and the office

 

of retirement services in the department of management and budget

 

and selected and administered by the office of retirement services

 

in the department of management and budget. The amount payable

 

shall be in the same proportion of premium payable by the state of

 

Michigan for the classified employees occupying positions in the

 

state civil service. The hospitalization and medical insurance

 

premium payable shall be paid from appropriations made for this

 

purpose to the health insurance reserve fund sufficient to cover

 

the premium payment needed to be made.

 

     (2) Effective January 1, 1988 and before October 1, 2009, 90%

 

of the premium payable by a retirant or the retirant's beneficiary

 

and his or her dependents for dental coverage or vision coverage,

 

or both, under any group plan authorized by the Michigan civil

 

service commission and the department of management and budget

 

shall be paid by the retirement board from the health insurance

 

reserve fund created in section 11. On and after October 1, 2009,

 

90% of the premium payable by a retirant or the retirant's

 

beneficiary and his or her dependents for dental coverage or vision

 

coverage, or both, under any group plan authorized by the

 

retirement board and the department of management and budget shall

 

be paid by the retirement board from the health insurance reserve


 

fund created in section 11. On and after October 1, 2009, the group

 

plan for dental coverage or vision coverage, or both, shall be

 

authorized by the civil service commission, the retirement board,

 

and the office of retirement services in the department of

 

management and budget and selected and administered by the office

 

of retirement services in the department of management and budget.

 

     (3) The department of management and budget shall calculate

 

for each fiscal year any cost savings that have accrued to this

 

state as a result of the implementation of 1996 PA 487 over the

 

costs that would have been incurred by this state to fund premiums

 

payable pursuant to section 68 had 1996 PA 487 not been

 

implemented. The total amount of the cost savings, if any, shall be

 

allocated to the health advance funding subaccount created under

 

section 11(9).

 

     (4) On and after March 31, 1997, the retirement system shall

 

also pay health insurance premiums described in this section in the

 

manner prescribed in section 68. On and after October 1, 2009, the

 

office of retirement services in the department of management and

 

budget shall authorize and select group plans for qualified

 

participants for hospitalization, medical coverage, dental

 

coverage, and vision coverage.

 

     (5) For purposes of this section, "retirant" includes a person

 

who retires under section 306 or 410 of the Michigan military act,

 

1967 PA 150, MCL 32.706 and 32.810.