Bill Text: MI HB5689 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Retirement; state police; public employee health benefit system; require to harmonize with the Michigan health benefits program act. Amends sec. 42 of 1986 PA 182 (MCL 38.1642).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-12-15 - Printed Bill Filed 12/11/2009 [HB5689 Detail]
Download: Michigan-2009-HB5689-Introduced.html
HOUSE BILL No. 5689
December 10, 2009, Introduced by Rep. Dillon and referred to the Committee on Public Employee Health Care Reform.
A bill to amend 1986 PA 182, entitled
"State police retirement act of 1986,"
by amending section 42 (MCL 38.1642), as amended by 2004 PA 50.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 42. (1) Hospitalization and medical coverage insurance
premiums payable by a retirant or his or her retirement allowance
beneficiary and his or her dependents under any group health plan
authorized by the Michigan civil service commission and the
department shall be paid in amounts provided by this subsection
from appropriations for this purpose made to the retirement system.
Coverage provided and plans authorized under this section shall be
provided and authorized in accordance with the Michigan health
benefits program act. Coverage provided and plans authorized in
accordance with the Michigan health benefits program act shall be
subject to section 21 of the Michigan health benefits program act.
Until October 1, 1989, the amount payable by the retirement system
shall be 90% of the entire monthly premium payable for
hospitalization and medical coverage insurance. Beginning October
1, 1989, the amount payable by the retirement system shall be 95%
of the entire monthly premium payable for hospitalization and
medical coverage insurance.
(2) Effective October 1, 1989, dental coverage and vision
coverage insurance premiums payable by a retirant or his or her
retirement allowance beneficiary and his or her dependents under
any group health plan authorized by the Michigan civil service
commission and the department shall be paid in amounts provided by
this subsection from appropriations for this purpose made to the
retirement system. Coverage provided and plans authorized under
this section shall be in accordance with the Michigan health
benefits program act. The amount payable by the retirement system
shall be 90% of the entire monthly premium payable for dental
coverage and vision coverage insurance.
(3) The health-dental-vision benefits fund is created and
shall be the fund into which appropriations of the state for
health, dental, and vision benefits are paid. Benefits payable
pursuant to subsections (1) and (2) shall be payable from the
health-dental-vision benefits fund. The assets and any earnings on
the assets contained in the health-dental-vision benefits fund and
the health advance funding subaccount are not to be treated as
pension assets for any purpose.
(4) The health advance funding subaccount is the account to
which amounts transferred pursuant to section 14(3) are credited.
Any amounts received from the health advance funding subaccount and
accumulated earnings on those amounts shall not be expended until
the actuarial accrued liability for health benefits under this
section is at least 100% funded. The department may expend funds or
transfer funds to another account to expend for health benefits
under this section if the actuarial accrued liability for health
benefits under this section is at least 100% funded.
(5) Notwithstanding any other provision of this section, the
department may transfer amounts from the health advance funding
subaccount to the reserve for employer contributions created by
section 16 if the actuarial valuation prepared pursuant to section
14 demonstrates that, as of the beginning of a fiscal year, and
after all credits and transfers required by this act for the
previous fiscal year have been made, the sum of the actuarial value
of assets and the actuarial present value of future normal cost
contributions does not exceed the actuarial present value of
benefits.
Enacting section 1. This amendatory act does not take effect
unless House Bill No. 5345 of the 95th Legislature is enacted into
law.
