January 22, 2009, Introduced by Reps. Knollenberg, Moss, McMillin and Rogers and referred to the Committee on Judiciary.
A bill to amend 1957 PA 261, entitled
"Michigan legislative retirement system act,"
by amending section 79 (MCL 38.1079), as amended by 2006 PA 614.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 79. (1) A former qualified participant who became a
qualified participant before January 1, 2007 may elect health
insurance benefits in the manner prescribed in this section if he
or she meets both of the following requirements:
(a) The former qualified participant is vested in health
benefits under section 75(2).
(b) The former qualified participant meets 1 of the following
requirements:
(i) He or she meets or exceeds the benefit commencement age
employed in the actuarial present value calculation under section
62 and the service requirements that would have applied to that
former participant under Tier 1 for receiving health insurance
coverage under section 50b, if that former participant was a member
of Tier 1.
(ii) He or she is 55 years of age or older.
(2) A former qualified participant who is eligible to elect
health insurance coverage under subsection (1) may elect health
insurance coverage in a health benefit plan or plans as authorized
by section 50b. A former qualified participant who is eligible to
elect health insurance coverage under subsection (1) may also elect
health insurance coverage for his or her health benefit dependents,
if any. A surviving health benefit dependent of a deceased former
qualified participant who is eligible to elect health insurance
coverage under subsection (1) may elect health insurance coverage
to begin at the death of the deceased former qualified participant
in the manner prescribed in this section.
(3) An individual who elects health insurance coverage under
this section shall become a member of a health insurance coverage
group authorized pursuant to section 50b.
(4) For a former qualified participant who is eligible to
elect health insurance coverage under subsection (1) and who is
vested in those benefits under section 75(2)(a) or (c), and for his
or her health benefit dependents, this state shall pay a portion of
the health insurance premium as calculated under this subsection on
a cash disbursement method. An individual described in this
subsection who elects health insurance coverage under this section
shall pay to the retirement system the remaining portion of the
health insurance coverage premium not paid by this state under this
subsection. The portion of the health insurance coverage premium
paid by this state under this subsection shall be 90% of the
payments for health insurance coverage under section 50b. If the
individual elects the health insurance coverage provided under
section 50b, this state shall transfer its portion of the amount
calculated under this subsection to the health insurance fund
created by section 22c.
(5) For a former qualified participant who is eligible to
elect health insurance coverage under subsection (1) and who is
vested in those benefits under section 75(2)(b), and for his or her
health benefit dependents, this state shall pay a portion of the
health insurance premium as calculated under this subsection on a
cash disbursement method. An individual described in this
subsection who elects health insurance coverage under this section
shall pay to the retirement system the remaining portion of the
health insurance coverage premium not paid by this state under this
subsection. The portion of the health insurance coverage premium
paid by this state under this subsection shall be equal to the
premium amounts paid on behalf of retirants of Tier 1 for health
insurance coverage under section 50b. If the individual elects the
health insurance coverage provided under section 50b, the state
shall transfer its portion of the amount calculated under this
subsection to the health insurance fund created by section 22c.
(6) If the department of management and budget receives
notification from the United States internal revenue service that
this section or any portion of this section will cause the
retirement system to be disqualified for tax purposes under the
internal revenue code, then the portion that will cause the
disqualification does not apply.