LEGISLATIVE RETIREMENT SYSTEM:

MODIFY HEALTH INSURANCE VESTING

House Bill 6311 (Substitute H-2)

Sponsor:  Rep. William J. O'Neil

Committee:  Government Operations

Complete to 11-30-04

A SUMMARY OF HOUSE BILL 6311 AS REPORTED FROM COMMITTEE

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 to immediately assume duties as of an elective public office.

[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.

                                                                                           Legislative Analyst:   E. Best/Chris Couch

                                                                                                  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.