January 17, 2008, Introduced by Rep. Wenke and referred to the Committee on Oversight and Investigations.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 68c (MCL 38.68c), as added by 2007 PA 95.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 68c. (1) Except as otherwise provided in this subsection,
a retirant who is receiving a retirement allowance under this act
and
is employed by this state beginning on or after the effective
date
of this section October 1,
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 employed by this state on the day before the
effective
date of this section September
30, 2007 so long as he or
she
remains in the position held by the retirant on the day before
the
effective date of this section September 30, 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.
(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) As used in this section, "employed by this state" means 1
or more of the following:
(a) Employed by this state as an employee.
(b) Hired by this state directly as an independent contractor.
(c) Employed indirectly by this state through a contractual
arrangement between this state and an employment agency.
(4) Subsection (3) and this subsection are effective beginning
October 1, 2007.