Bill Text: MI SB0413 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Retirement; state employees; prohibition of receiving retirement allowance if return to state service; remove for certain child welfare employees. Amends sec. 68c of 1943 PA 240 (MCL 38.68c).

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2011-10-13 - Referred To Committee Of The Whole With Substitute S-1 [SB0413 Detail]

Download: Michigan-2011-SB0413-Introduced.html

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SENATE BILL No. 413

 

 

June 7, 2011, Introduced by Senators JANSEN, PAPPAGEORGE and PROOS and referred to the Committee on Appropriations.

 

 

 

     A bill to amend 1943 PA 240, entitled

 

"State employees' retirement act,"

 

by amending section 68c (MCL 38.68c), as amended by 2010 PA 185.

 

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, 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 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, or indirectly by

 

this state through a contractual arrangement with other parties, .

 

Beginning after October 1, 2010, "employed by this state" shall

 

also include or by engagement of the retirant by the 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 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 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, then the benefits under medicare shall 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 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 be determined before the benefits provided pursuant to

 

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 include the

 

name of the retirant, the capacity in which the retirant is

 

employed, and the total compensation paid to the retirant.

 

     (4) Subsection (1) does not apply to the appointment of a

 

retirant who was an assistant attorney general as a special

 

assistant attorney general when the attorney general determines

 

that, as a result of his or her previous employment with the 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) Subsection (1) does not apply to a retirant if the

 

retirant is indirectly employed by this state through a contractual

 

arrangement with the department of human services for services

 

related to child welfare and the retirant's contractual arrangement

 

is limited in term. However, the term of a retirant's contractual

 

arrangement under this subsection may be extended if the department

 

of human services determines that the stability of the caseworkers

 

providing services related to child welfare achieved through an

 

extension is necessary to promote child welfare.