June 17, 2008, Introduced by Reps. Wenke, Huizenga, Hammel and Rick Jones and referred to the Committee on Oversight and Investigations.
A bill to amend 1957 PA 261, entitled
"Michigan legislative retirement system act,"
by amending sections 22c, 50b, and 75 (MCL 38.1022c, 38.1050b, and
38.1075), section 22c as amended by 2002 PA 97 and sections 50b and
75 as amended by 1998 PA 501.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 22c. (1) The health insurance fund is created in the
retirement system. The retirement system shall deposit into the
health insurance fund the member contributions for health benefits
required by this section, subscriber co-payments, payments under
section 79, regular interest from the income fund, and state
appropriations. The retirement system shall disburse from the
health insurance fund the premiums or portion of the premiums for
dental, hospital, and medical coverage insurance as required by
sections 50b and 79.
(2) Except as otherwise provided in this subsection, a member
shall
make contributions to the health insurance fund of 1% of each
payment
of salary received that is attributable to service
performed
on and after January 1, 1995. Beginning on the effective
date
of section 36a, a member who first became a member of Tier 1
on
or before January 1, 1995 shall make contributions to the health
insurance
fund of 9% of each payment of salary received by the
member
for service as a member. Beginning on the effective date of
section
36a, a member who first became a member of Tier 1 after
January 1, 1995 shall make contributions to the health insurance
fund
of 7% of each payment of salary received by the member for
service
as a member. The increased contributions required under
this
subsection by the amendatory act that added section 36a will
continue
unless suspended by the board under section 36a 25% of the
premium cost of providing the retirement health care. The
contributions shall be made by payroll deductions and each member
is considered to consent to the deductions as a condition of
membership in the retirement system.
(3) Except as otherwise provided by this act, membership
contributions to the health insurance fund are not refundable.
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
insurance coverage.
(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) Beginning on the effective date of the amendatory act that
added this subsection, the amounts each person who is enrolled in
insurance coverage under this section shall contribute shall be no
less than 25% of the cost of providing retirement health care
coverage.
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
as a qualified participant and was not a member, deferred vested
member, or former nonvested member of Tier 1.
(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
requirements:
(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
participant.
(iv) Pays no less than 25% of the costs of providing retirement
health care.