HB-6379, As Passed House, October 3, 2018
September 25, 2018, Introduced by Rep. Canfield and referred to the Committee on Government Operations.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 68c (MCL 38.68c), as amended by 2016 PA 524.
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 550.255.550.254.
(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 who is
employed by this state by the legislative branch if the speaker of
the house of representatives, the senate majority leader, or the
legislative council administrator, as appropriate, determines that,
as a result of the retirant's previous employment with the
legislative branch, he or she possesses specialized expertise and
experience necessary for the employment and that the employment is
the most cost-effective option for this state.
(9) (8)
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) (9)
As used in subsection (8):(9):
(a) "Mental health service" means service as that term as
defined in section 100d of the mental health code, 1974 PA 258, MCL
330.1100d.
(b) "Psychiatric hospital" means that term as defined 100b of
the mental health code, 1974 PA 258, MCL 330.1100b.
(c) "Psychiatrist" means that term as defined section 100c of
the mental health code, 1974 PA 258, MCL 330.1100c.