January 20, 2015, Introduced by Senator JONES and referred to the Committee on Judiciary.
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 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.