Bill Text: MI HB4602 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Retirement: legislative; retirement health care benefits; limit to 80% of premium. Amends secs. 50b & 79 of 1957 PA 261 (MCL 38.1050b & 38.1079).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-04-14 - Bill Electronically Reproduced 04/13/2021 [HB4602 Detail]
Download: Michigan-2021-HB4602-Introduced.html
HOUSE BILL NO. 4602
A bill to amend 1957 PA 261, entitled
"Michigan legislative retirement system act,"
by amending sections 50b and 79 (MCL 38.1050b and 38.1079), section 50b as amended by 1998 PA 501 and section 79 as amended by 2011 PA 200.
the people of the state of michigan enact:
Sec. 50b. (1) For a retirant or a survivor or beneficiary of a deceased retirant, or for a deferred vested member if that the deferred vested member first became a member on or before January 1, 1995, the retirement system shall purchase and, subject to subsection (3), pay the premium for hospitalization and medical insurance coverage and dental and vision coverage for the retirant, the deferred vested member, and the spouses, eligible children, and survivors of those retirants and deferred vested members. Except as otherwise provided in this section, the retirement system shall provide hospitalization and medical insurance coverage and dental and vision insurance coverage under this section at a level that is equal to or greater than the level of insurance coverage under this section in effect on December 1, 1992. The retirement board may increase the amounts each person who is enrolled in insurance coverage under this section is required to pay for co-pays or deductibles under that insurance coverage.
(2) On and after March 31, 1997, the The retirement system shall also pay health insurance premiums described in this section in the manner prescribed in section 79.
(3) Beginning January 1, 2022, the retirement system shall pay 80% of the entire monthly premium for hospitalization and medical insurance coverage and dental and vision coverage for the retirant, the deferred vested member, and the spouses, eligible children, and survivors of those retirants and deferred vested members who are eligible for that coverage under subsection (1).
Sec. 79. (1) A former qualified participant may elect health insurance benefits in the manner prescribed in this section if he or she meets both of the following requirements:
(a) The former qualified participant is vested in health benefits under section 75(2).
(b) The former qualified participant meets 1 of the following requirements:
(i) He or she meets or exceeds the benefit commencement age employed used in the actuarial present value calculation under section 62 and the service requirements that would have applied to that the former participant under Tier 1 for receiving health insurance coverage under section 50b, if that the former participant was a member of Tier 1.
(ii) He or she is 55 years of age or older.
(2) A former qualified participant who is eligible to elect health insurance coverage under subsection (1) may elect health insurance coverage in a health benefit plan or plans as authorized by section 50b. A former qualified participant who is eligible to elect health insurance coverage under subsection (1) may also elect health insurance coverage for his or her health benefit dependents, if any. A surviving health benefit dependent of a deceased former qualified participant who is eligible to elect health insurance coverage under subsection (1) may elect health insurance coverage to begin at the death of the deceased former qualified participant in the manner prescribed in this section.
(3) An individual who elects health insurance coverage under this section shall must become a member of a health insurance coverage group authorized pursuant to under section 50b.
(4) For a former qualified participant who is eligible to elect health insurance coverage under subsection (1) and who is vested in those benefits under section 75(2)(a) or (c), and for his or her health benefit dependents, this state shall pay a portion of the health insurance premium as calculated under this subsection on a cash disbursement method. An individual described in this subsection who elects health insurance coverage under this section shall pay to the retirement system the remaining portion of the health insurance coverage premium not paid by this state under this subsection. The Until December 31, 2021, the portion of the health insurance coverage premium paid by this state under this subsection shall must be 90% of the payments for health insurance coverage under section 50b. Beginning January 1, 2022, the portion of the health insurance coverage premium paid by this state under this subsection may not exceed 80% of the entire premium for health insurance coverage described in section 50b. If the individual elects the health insurance coverage provided under section 50b, this state shall transfer its portion of the amount calculated under this subsection to the health insurance fund created by section 22c.
(5) For a former qualified participant who is eligible to elect health insurance coverage under subsection (1) and who is vested in those benefits under section 75(2)(b), and for his or her health benefit dependents, this state shall pay a portion of the health insurance premium as calculated under this subsection on a cash disbursement method. An individual described in this subsection who elects health insurance coverage under this section shall pay to the retirement system the remaining portion of the health insurance coverage premium not paid by this state under this subsection. The portion of the health insurance coverage premium paid by this state under this subsection shall must be equal to the premium amounts paid on behalf of retirants of Tier 1 for health insurance coverage under section 50b. If the individual elects the health insurance coverage provided under section 50b, the this state shall transfer its portion of the amount calculated under this subsection to the health insurance fund created by section 22c.
(6) If the department of technology, management, and budget receives notification from the United States internal revenue service Internal Revenue Service that this section or any portion of this section will cause the retirement system to be disqualified for tax purposes under the internal revenue code, then the portion that will cause the disqualification does not apply.
(7) A former qualified participant who does not meet the vesting requirements of section 75(2) is not eligible for health insurance benefits under this act.
