Bill Text: MI HB5637 | 2011-2012 | 96th Legislature | Introduced

---

Bill Title: Labor; public service employment; employment with same governmental entity in which a pension is drawn; prohibit. Creates new act.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2012-05-16 - Printed Bill Filed 05/16/2012 [HB5637 Detail]

Download: Michigan-2011-HB5637-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5637

 

May 15, 2012, Introduced by Reps. Cavanagh, Horn, Ananich, Durhal, McMillin, Hovey-Wright, Olumba, Daley and Damrow and referred to the Committee on Government Operations.

 

     A bill to prohibit public employers in this state from

 

employing an individual who is receiving benefits from the public

 

employer's defined benefit retirement plan; and to provide

 

sanctions.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the "jobs

 

initiative reform act".

 

     Sec. 3. As used in this act, "public employer" means this

 

state or a county, township, city, village, authority, or other

 

political subdivision of this state, and includes any entity

 

jointly created by 2 or more of those entities.

 

     Sec. 5. (1) A public employer shall not directly, or

 

indirectly through a contract with a third party, employ an

 

individual who is receiving retirement benefits from a public

 

employee defined benefit retirement plan of that public employer.

 

This section does not apply if the individual waives his or her

 

right to receive previously accrued retirement benefits from that

 

public employer's defined benefit retirement plan while reemployed

 

by the public employer.

 

     (2) A public employer that violates this section shall

 

immediately discontinue the violation of this section and shall

 

reimburse the defined benefit retirement plan for retirement

 

benefits that the defined benefit retirement plan paid to the

 

individual during the prohibited employment.

 

     (3) If a public employer violates this act, the attorney

 

general shall apply to the court of claims for an order to permit

 

the state treasurer to reduce any payment that is due to that

 

public employer under the Glenn Steil state revenue sharing act of

 

1971, 1971 PA 140, MCL 141.901 to 141.921, by an amount equal to 2

 

times the amount of the payments made in violation of this section.

 

     Sec. 7. This act does not apply to an individual who is

 

employed by a public employer and receiving benefits under the

 

public employer's defined benefit retirement plan on the effective

 

date of this act.