LEGISLATIVE RETIREMENT SYSTEM:
MODIFY HEALTH INSURANCE VESTING
House Bill 6311
Sponsor: Rep. William J. O'Neil
Committee: Government Operations
Complete to 11-29-04
A SUMMARY OF HOUSE BILL 6311 AS INTRODUCED 11-4-04
The bill would amend the Michigan Legislative Retirement System Act to add language specifying that a qualified participant would be vested in health insurance coverage if he or she meets the following requirements:
* was not a member, deferred vested member, or former nonvested member of Tier 1 (the defined benefit system).
* has completed at least 5 years and 10 months of service as a qualified participant.
* has resigned from office between November 2, 2004 and November 21, 2004 to immediately assume duties as an elected township official.
[Note: The term "qualified participant" refers to an individual who is a participant of Tier 2 — the defined contribution system — and who either 1) became a legislator on or after March 31, 1997 and who before that date would have been eligible for Tier 1; or 2) elected to terminate membership in Tier 1 and participate instead in Tier 2.]
MCL 38.1075
FISCAL IMPACT:
The bill would cost $6,000 to $15,000 per year, depending on coverage.
Fiscal Analyst: Al Valenzio
■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.