Bill Text: MI HB5128 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Retirement; state employees; retired state employees to contract with department of natural resources for wildfire suppression; allow without losing retirement allowance. Amends sec. 68c of 1943 PA 240 (MCL 38.68c).
Spectrum: Partisan Bill (Republican 10-0)
Status: (Passed) 2016-12-28 - Assigned Pa 351'16 With Immediate Effect [HB5128 Detail]
Download: Michigan-2015-HB5128-Introduced.html
HOUSE BILL No. 5128
December 9, 2015, Introduced by Reps. Rendon, LaFontaine, Cole, Johnson, Potvin, Graves, Goike, Jenkins, Pettalia and McBroom and referred to the Committee on Natural Resources.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 68c (MCL 38.68c), as amended by 2015 PA 20.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 68c. (1) Except as otherwise provided in this section, a
retirant who is receiving a retirement allowance under this act and
is employed by this state beginning after 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 directly or indirectly employed by
this state on October 1, 2007 while he or she remains in the
position held by the retirant on October 1, 2007. As used in this
subsection, "employed by this state" means employed directly by
this state as an employee, indirectly by this state through a
contractual arrangement with other parties, or by engagement of the
retirant by this state as an independent contractor. This
subsection does not apply to a retirant who is engaged as an
independent contractor on October 1, 2010 while the retirant
remains engaged in the same contract that was held by the retirant
on October 1, 2010 without amendment or extension.
(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 must 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 must 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 must 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 must be determined before the benefits provided under this
act.
(3) Subsection (1) does not apply to a retirant if all of the
following apply:
(a) The retirant is hired to provide health care services to
individuals under the jurisdiction of the department of
corrections.
(b) The retirant is hired in a position that is limited in
term, no benefits are paid, and pay is on a per diem basis.
(c) The department of corrections provides written notice to
the state budget office and the department of technology,
management, and budget that attempts have been made to fill the
position through postings and recruitment and that the position
vacancy still exists.
(d) The department of corrections reports the employment of a
retirant under this subsection within 30 days of employment of the
retirant to the state budget office and the department of
technology, management, and budget. The report must include the
name of the retirant, the capacity in which the retirant is
employed, and the total compensation paid to the retirant.
(e) The retirant retired after a bona fide termination.
(4) Subsection (1) does not apply to the appointment of a
retirant who retired after a bona fide termination and who was an
assistant attorney general as a special assistant attorney general
if the attorney general determines that, as a result of his or her
previous employment with this state, the retirant possesses
specialized expertise and experience necessary for the appointment
and that the appointment is the most cost-effective option for this
state.
(5) Until September 30, 2015, subsection (1) does not apply to
a retirant if all of the following apply:
(a) The retirant is hired to provide for the custody of
individuals under the jurisdiction of the department of
corrections.
(b) The retirant is hired in a position that is limited in
term, no benefits are paid, and the pay is not more than 80% of the
maximum hourly wage granted to classified civil service employees
employed by the department of corrections to perform the same
duties as the retirant for the fiscal year during which the
retirant is employed.
(c) The retirant works no more than 1,040 hours in a 12-month
period of state employment.
(d) The retirant retired after a bona fide termination of
employment.
(6) Subsection (1) does not apply to a retirant if all of the
following apply:
(a) The department of attorney general contracts with the
retirant as a witness, expert, or consultant for litigation
involving this state. The contract must provide that the retirant's
service as a witness, expert, or consultant ends at the conclusion
of the litigation.
(b) The attorney general determines that, as result of the
retirant's previous employment with this state, the retirant
possesses specialized expertise and experience necessary for the
litigation and the contract is the most cost-effective option for
the state.
(c) The retirant retired after a bona fide termination of
employment.
(7) Subsection (1) does not apply to a retirant if the
retirant is hired by the department of natural resources for
wildland fire management services as the department of natural
resources determines necessary, to a position that is limited in
term, no benefits are paid, and the pay is not more than 80% of the
maximum hourly wage granted to classified civil service employees
employed by the department of natural resources to perform the same
duties as the retirant for the fiscal year during which the
retirant is employed.
