September 11, 2012, Introduced by Rep. Meadows 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 2010 PA 185.
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 on or after October 2, 2007
agrees to forfeit his or her right to receive that retirement
allowance during this period of state employment. The retirement
system shall cease 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 so
long as if
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, or indirectly by
this
state through a contractual arrangement with other parties .
Beginning
after October 1, 2010, "employed by this state" shall
also
include to perform the same
or similar duties that were being
performed by the retirant on the date of his or her retirement, or
by
engagement of the retirant by the 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 so long as
if 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 shall 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 shall 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 shall 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 shall be determined before the benefits provided pursuant to
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 shall include the
name of the retirant, the capacity in which the retirant is
employed, and the total compensation paid to the retirant.
(4) Subsection (1) does not apply to the appointment of a
retirant who was an assistant attorney general as a special
assistant attorney general when the attorney general determines
that, as a result of his or her previous employment with the 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) Subsection (1) does not apply to a retirant who is engaged
by this state as an independent contractor if the retirant is at
least 60 years of age and the total amount of compensation paid to
the retirant during any annual period does not exceed 50% of the
retirant's annual retirement allowance.
(6) Subsection (1) does not apply to a retirant if he or she
is hired in a position that is in a different department and in a
position that performs different duties than the position the
retirant held on the date of his or her retirement. This subsection
does not apply to a retirant who is employed by this state on the
effective date of the amendatory act that added this subsection if
he or she remains in the position held by the retirant on that
date.