Bill Text: MI HB5881 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Retirement; state employees; retired corrections officers to work as needed; allow under certain circumstances without losing retirement allowance. Amends sec. 68c of 1943 PA 240 (MCL 38.68c).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2012-12-27 - Assigned Pa 432'12 With Immediate Effect [HB5881 Detail]
Download: Michigan-2011-HB5881-Engrossed.html
HB-5881, As Passed House, November 29, 2012
SUBSTITUTE FOR
HOUSE BILL NO. 5881
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 68c (MCL 38.68c), as amended by 2011 PA 264.
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 on or after October 2, 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 so long as 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 so long as
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 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 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 shall 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 the 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, 2013, 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 for the fiscal year ending September
30, 2013 to classified civil service employees employed by the
department of corrections to perform the same duties as the
retirant.
(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.
