HOUSE BILL No. 6579

 

October 29, 2008, Introduced by Rep. Elsenheimer and referred to the Committee on Government Operations.

 

     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

 

section, 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 October 1, 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 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.

 

     (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 who is

 


employed by this state in an emergency position or a position that

 

is classified as part-time. As used in this subsection, "emergency

 

position" means a position for which no one but a retirant has

 

submitted an application.