April 17, 2007, Introduced by Rep. Hammel and referred to the Committee on Government Operations.
A bill to amend 1980 PA 300, entitled
"The public school employees retirement act of 1979,"
(MCL 38.1301 to 38.1408) by adding section 91a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 91a. (1) The retirement system shall establish a public
school employee health care fund for the purpose of accumulating
money to provide for the funding of hospital, medical-surgical, and
sick care benefits for retirants and retirement allowance
beneficiaries who elect coverage in the plan authorized by the
retirement board and the department. Money for the payment of
health care benefits to retirants and retirement allowance
beneficiaries may be provided from this fund. The fund shall be
implemented to 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 eligible retirants and
retirement allowance beneficiaries and the payment of the expenses
of administration of the fund.
(c) The designation of who is qualified to have the cost of
retirement health care benefits paid from the fund.
(d) A determination of whether the fund will be established on
an actuarial basis.
(2) It is the intent of the legislature that the fund
established under this section qualify for federal tax purposes as
a voluntary employee benefits association under section 501(c)(9)
of the internal revenue code, 26 USC 501, or as a trust under
section 115 of the internal revenue code, 26 USC 115. Not later
than 12 months after the effective date of the amendatory act that
added this section, the retirement system shall report to the
senate majority leader and the speaker of the house of
representatives on the status of implementation of this section.
(3) Funds in a trust or fund established under this section
shall be invested in accordance with the public employee retirement
system investment act, 1965 PA 314, MCL 38.1132 to 38.1140m.