HOUSE BILL No. 5545

 

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.