HOUSE BILL No. 6245

 

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.