April 17, 2007, Introduced by Rep. Hammel and referred to the Committee on Government Operations.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
(MCL 38.1 to 38.69) by adding section 49a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 49a. (1) The retirement board shall create and implement
a state employee health care fund for the purpose of accumulating
funds to provide for the funding of health care benefits to
retirants, former qualified participants, and other beneficiaries
under this act. No later than 12 months after the effective date of
the amendatory act that added this section, the retirement board
shall submit a report to the senate majority leader and the speaker
of the house of representatives documenting the progress toward
establishment and implementation of the fund. Money for the payment
of the health care costs for retirants, former qualified
participants, and beneficiaries may be provided from this fund. The
legislature intends that the fund be established as exempt from
federal taxes either as a voluntary employee benefits association
under section 501(c)(9) of the internal revenue code, 26 USC 501,
or pursuant to section 115 of the internal revenue code, 26 USC
115. The retirement board shall assure that the fund shall include
all of the following:
(a) The designation of a person or persons who shall act as
the fund's investment fiduciary.
(b) A restriction of withdrawals from the fund solely for the
payment of health care benefits on behalf of qualified persons and
the payment of the expenses of administration of the fund.
(c) The designation of who is a qualified person for the
purposes of payment of health care benefits from the fund.
(d) A determination of whether the fund will be established on
an actuarial basis.
(2) The fund may receive money from any source, including, but
not limited to, contributions from members and qualified
participants. The legislature intends that any contributions from
members and qualified participants be pretax contributions for
federal tax purposes.
(3) The investment fiduciary shall invest the fund assets in
accordance with the public employee retirement system investment
act, 1965 PA 314, MCL 38.1132 to 38.1140m.