April 17, 2012, Introduced by Reps. Slavens, Brown, Lipton and Switalski and referred to the Committee on Government Operations.
A bill to amend 1957 PA 261, entitled
"Michigan legislative retirement system act,"
by amending sections 50b and 75 (MCL 38.1050b and 38.1075), section
50b as amended by 1998 PA 501 and section 75 as amended by 2011 PA
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 deferred
vested member first became a member on or before January 1, 1995,
the retirement system shall purchase and pay the premium for
hospitalization and medical insurance coverage and dental and
vision coverage for the retirant, 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
(2) On and after March 31, 1997, the retirement system shall
also pay health insurance premiums described in this section in the
manner prescribed in section 79.
(3) This section does not apply to a retirant, survivor or
beneficiary of a deceased retirant, or a deferred vested member who
was serving as a member of the legislature on or after January 30,
Sec. 75. (1) A qualified participant is immediately 100%
vested in his or her contributions made to Tier 2. A qualified
participant shall vest in the employer contributions made on his or
her behalf to Tier 2 according to the following schedule:
(a) Upon completion of 2 years of service, 50%.
(b) Upon completion of 3 years of service, 75%.
(c) Upon completion of 4 years of service, 100%.
(2) A qualified participant is vested in the health insurance
coverage provided in section 79 if the qualified participant meets
1 of the following requirements:
(a) The qualified participant has completed 6 years of service
a qualified participant,
before January 1, 2013 and was not a
member, deferred vested member, or former nonvested member of Tier
1, and was not serving as a member of the legislature on or after
January 30, 2009.
(b) The qualified participant was a member, deferred vested
member, or former nonvested member of Tier 1 who made an election
to participate in Tier 2 pursuant to section 61, and who has met
the service requirements he or she would have been required to meet
in order to vest in health benefits under section 50b.
(c) The qualified participant meets all of the following
(i) Was not a member, deferred vested member, or former
nonvested member of Tier 1.
(ii) Was first elected to fill a vacancy in the house of
representatives for a period less than the full term but more than
1/2 of the term of office.
(iii) Has completed 5 years of service as a qualified
January 1, 2013.
(iv) Was not serving as a member of the legislature on or after
January 30, 2009.