July 21, 2010, Introduced by Rep. Geiss and referred to the Committee on Intergovernmental and Regional Affairs.
A bill to amend 1846 RS 16, entitled
"Of the powers and duties of townships, the election and duties of
township officers, and the division of townships,"
by amending section 110b (MCL 41.110b), as amended by 1999 PA 209.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
110b. (1) A Except as
otherwise provided in this section,
a township may do all of the following:
(a) Establish a retirement system for its employees and
provide for financing, funding, and the payment of benefits in the
same manner and to the same extent as permitted counties under
section
12a of 1851 PA 156, MCL 46.12A, 46.12a
or make contracts of
insurance with an insurance company authorized to transact business
within this state.
(b) Make arrangements with a prepayment plan authorized to
transact business within the state, insuring and covering 1 or more
of the following under policies of group insurance or prepayment
plan contracts, or both, covering life, accident, dental care,
vision care, health, hospitalization, and medical and surgical
service and expense insurance:
(i) Elected or appointed township officers and employees, and
dependents of those officers or those employees.
(ii) Any classes of elected or appointed township officers and
employees, and dependents of those officers or those employees.
(iii) Any classes of retired township officers and employees,
and dependents of those officers or those employees.
(c) Establish a cafeteria plan authorized under section 125 of
the internal revenue code of 1986 for its elected or appointed
officers and employees, any classes of elected or appointed
officers and employees, and dependents of those officers and those
employees. As used in this subdivision, "cafeteria plan" means that
term as defined in section 125 of the internal revenue code of
1986.
(d) Contract with a company that grants annuities or pensions
for the pensioning of the officers and employees and for these
purposes pay any part of the premiums or charges for insurance,
prepayment plan coverage, annuities, or pensions.
(e) Offer any other employment benefit authorized by state or
federal law.
(2) Notwithstanding any other provision of law, the proper
disbursing officer of the township may deduct from an officer's or
employee's pay, salary, or compensation that part of the premium or
charge that is payable by the officer or employee.
(3) A contract of insurance or arrangement for prepayment plan
coverage procured under this section may provide that each elected
or appointed officer or employee becoming eligible for insurance or
coverage becomes insured or covered automatically when he or she
becomes eligible, subject to any actively-at-work requirements or
effective retirement dates specified in the contract or
arrangement. If the insurance or coverage under the contract or
arrangement requires contributions from the individual, any
individual desiring not to be insured or covered under the contract
or arrangement shall give written notice to his or her employing
office that he or she desires not to be insured or covered, and if
the notice is received before the individual has become insured or
covered under the contract or arrangement, he or she shall not be
insured or covered. If the notice is received after the individual
has become insured or covered, his or her insurance or coverage
under the contract or arrangement shall cease as provided for in
the contract or arrangement.
(4) This section does not affect the validity of a retirement
program or contract of group insurance or arrangement for
prepayment plan coverage entered into by the township before June
20, 1989.
(5) Beginning with employees hired on and after October 1,
2010, a township shall not pay an employee who has retired a
defined benefit retirement benefit that is greater than 55% of the
employee's base pay on an annual basis. If a collective bargaining
agreement or other binding agreement that affects the defined
benefit pension amount is in effect on September 30, 2011, the
defined benefit pension amount shall be paid in accordance with the
terms of the collective bargaining or other binding agreement until
the agreement expires or is revised or renewed. As used in this
section, "base pay" means the hourly pay rate of the employee up to
40 hours per week and 52 weeks per year. Base pay shall not include
any of the following:
(a) Overtime pay.
(b) Accrued sick leave or accrued vacation time.
(c) Bonus pay.
(d) The cost of health insurance or other fringe benefits.
(e) One-time lump-sum payments.
(6) (5)
The authority given under this
section is in addition
to and not in derogation of any power existing in the township
under the laws of this state. A township may exercise the powers
granted under this section by ordinance without the necessity of
amending its charter.