SB-0012, As Passed Senate, February 3, 2015

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 12

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1943 PA 240, entitled

 

"State employees' retirement act,"

 

by amending section 68c (MCL 38.68c), as amended by 2013 PA 112.

 

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, 1, 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

 

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 so long as 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 shall 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, Medicare, then the benefits under medicare

 

shall 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 shall must 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 must be determined before the benefits provided pursuant

 

to 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 shall 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.

 

     (b) The attorney general determines that, as 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.