December 6, 2007, Introduced by Reps. Meadows, Johnson, Spade, Alma Smith and Coulouris and referred to the Committee on Retiree Health Care Reforms.
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 20d (MCL 38.20d), as amended by 2002 PA 93.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 20d. (1) On and after July 1, 1974 and before July 1,
2008, hospitalization and medical coverage insurance premium
payable by any retirant or his or her beneficiary and his or her
dependents under any group health plan authorized by the Michigan
civil service commission and the department of management and
budget shall be paid by the retirement board from the health
insurance reserve fund created in section 11. On and after July 1,
2008, hospitalization and medical coverage insurance premium
payable by any retirant or his or her beneficiary and his or her
dependents under a group health plan authorized by the department
of management and budget shall be paid by the retirement board from
the health insurance reserve fund created in section 11. On and
after July 1, 2008, the group health plan shall be authorized and
administered by the retirement system in the department of
management and budget. The amount payable shall be in the same
proportion of premium payable by the state of Michigan for the
classified employees occupying positions in the state civil
service. The hospitalization and medical insurance premium payable
shall be paid from appropriations made for this purpose to the
health insurance reserve fund sufficient to cover the premium
payment needed to be made.
(2) Effective January 1, 1988 and before July 1, 2008, 90% of
the premium payable by a retirant or the retirant's beneficiary and
his or her dependents for dental coverage or vision coverage, or
both, under any group plan authorized by the Michigan civil service
commission and the department of management and budget shall be
paid by the retirement board from the health insurance reserve fund
created in section 11. On and after July 1, 2008, 90% of the
premium payable by a retirant or the retirant's beneficiary and his
or her dependents for dental coverage or vision coverage, or both,
under any group plan authorized by the department of management and
budget shall be paid by the retirement board from the health
insurance reserve fund created in section 11. On and after July 1,
2008, the group plan for dental coverage or vision coverage, or
both, shall be authorized and administered by the office of
retirement services in the department of management and budget.
(3) The department of management and budget shall calculate
for each fiscal year any cost savings that have accrued to this
state as a result of the implementation of 1996 PA 487 over the
costs that would have been incurred by this state to fund premiums
payable pursuant to section 68 had 1996 PA 487 not been
implemented. The total amount of the cost savings, if any, shall be
allocated to the health advance funding subaccount created under
section 11(9).
(4) 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 68. On and after July 1, 2008, the
office of retirement services in the department of management and
budget shall authorize and select group plans for qualified
participants for hospitalization, medical coverage, dental
coverage, and vision coverage.
(5) For purposes of this section, "retirant" includes a person
who retires under section 306 or 410 of the Michigan military act,
1967 PA 150, MCL 32.706 and 32.810.