May 15, 2012, Introduced by Reps. Cavanagh, Horn, Ananich, Durhal, McMillin, Hovey-Wright, Olumba, Daley and Damrow and referred to the Committee on Government Operations.
A bill to prohibit public employers in this state from
employing an individual who is receiving benefits from the public
employer's defined benefit retirement plan; and to provide
sanctions.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "jobs
initiative reform act".
Sec. 3. As used in this act, "public employer" means this
state or a county, township, city, village, authority, or other
political subdivision of this state, and includes any entity
jointly created by 2 or more of those entities.
Sec. 5. (1) A public employer shall not directly, or
indirectly through a contract with a third party, employ an
individual who is receiving retirement benefits from a public
employee defined benefit retirement plan of that public employer.
This section does not apply if the individual waives his or her
right to receive previously accrued retirement benefits from that
public employer's defined benefit retirement plan while reemployed
by the public employer.
(2) A public employer that violates this section shall
immediately discontinue the violation of this section and shall
reimburse the defined benefit retirement plan for retirement
benefits that the defined benefit retirement plan paid to the
individual during the prohibited employment.
(3) If a public employer violates this act, the attorney
general shall apply to the court of claims for an order to permit
the state treasurer to reduce any payment that is due to that
public employer under the Glenn Steil state revenue sharing act of
1971, 1971 PA 140, MCL 141.901 to 141.921, by an amount equal to 2
times the amount of the payments made in violation of this section.
Sec. 7. This act does not apply to an individual who is
employed by a public employer and receiving benefits under the
public employer's defined benefit retirement plan on the effective
date of this act.