HOUSE Substitute For
SENATE BILL NO. 911
A bill to amend 1943 PA 240, entitled
"State employees' retirement act,"
by amending section 68c (MCL 38.68c), as amended by 2020 PA 18.
the people of the state of michigan enact:
Sec. 68c. (1)
Except as otherwise provided in this section, a retirant who is receiving a
retirement allowance under this act and is employed by this state beginning
after October 1, 2007 agrees to forfeit his or her right to receive that
retirement allowance during this period of state employment. The retirement
system shall stop payment of the retirement allowance to a retirant described
in this subsection during this period of state employment and shall reinstate
payment of the retirement allowance without recalculation when the period of
state employment ceases. This subsection does not
apply to a retirant who is directly or indirectly employed by this state on
October 1, 2007 while he or she remains in the position held by the retirant on
October 1, 2007. As used in this subsection, "employed by this state"
means employed directly by this state as an employee, indirectly by this state
through a contractual arrangement with other parties, or by engagement of the
retirant by this state as an independent contractor. This subsection does not
apply to a retirant who is engaged as an independent contractor on October 1,
2010 while the retirant remains engaged in the same contract that was held by
the retirant on October 1, 2010 without amendment or extension.
(2) A hospital, medical-surgical, and sick care benefits
plan, dental plan, vision plan, and hearing plan that covers retirants,
retirant allowance beneficiaries, former qualified participants, and health
benefit dependents under this act must contain a coordination of benefits
provision that provides all of the following:
(a) If the person covered under any of the plans is also
eligible for Medicare, the benefits under Medicare must be determined before
the health insurance benefits under this act.
(b) If a person covered under any of the plans provided by
this act is also covered under another plan that contains a coordination of
benefits provision, the benefits must be coordinated as provided in the
coordination of benefits act, 1984 PA 64, MCL 550.251 to 550.254.
(c) If the person covered under any of the plans provided by
this act is also covered under another plan that does not contain a
coordination of benefits provision, the benefits under the other plan must be
determined before the benefits provided under this act.
(3) Subsection (1) does not apply to a retirant if all of the
following apply:
(a) The retirant is hired to provide health care services to
individuals under the jurisdiction of the department of corrections.
(b) The retirant is hired in a position that is limited in
term, no benefits are paid, and pay is on a per diem basis.
(c) The department of corrections provides written notice to
the state budget office and the department of technology, management, and
budget that attempts have been made to fill the position through postings and
recruitment and that the position vacancy still exists.
(d) The department of corrections reports the employment of a
retirant under this subsection within 30 days of employment of the retirant to
the state budget office and the department of technology, management, and
budget. The report must include the name of the retirant, the capacity in which
the retirant is employed, and the total compensation paid to the retirant.
(e) The retirant retired after a bona fide termination.
(4) Subsection (1) does not apply to the appointment of a
retirant who retired after a bona fide termination and who was an assistant
attorney general as a special assistant attorney general if the attorney
general determines that, as a result of his or her previous employment with
this state, the retirant possesses specialized expertise and experience
necessary for the appointment and that the appointment is the most
cost-effective option for this state.
(5) Until September 30, 2015, subsection (1) does not apply
to a retirant if all of the following apply:
(a) The retirant is hired to provide for the custody of
individuals under the jurisdiction of the department of corrections.
(b) The retirant is hired in a position that is limited in
term, no benefits are paid, and the pay is not more than 80% of the maximum
hourly wage granted to classified civil service employees employed by the
department of corrections to perform the same duties as the retirant for the
fiscal year during which the retirant is employed.
(c) The retirant works no more than 1,040 hours in a 12-month
period of state employment.
(d) The retirant retired after a bona fide termination of
employment.
(6) Subsection (1) does not apply to a retirant if all of the
following apply:
(a) The department of attorney general contracts with the
retirant as a witness, expert, or consultant for litigation involving this
state. The contract must provide that the retirant's service as a witness,
expert, or consultant ends at the conclusion of the litigation.
(b) The attorney general determines that, as a result of the
retirant's previous employment with this state, the retirant possesses
specialized expertise and experience necessary for the litigation and the
contract is the most cost-effective option for the state.
(c) The retirant retired after a bona fide termination of
employment.
(7) Subsection (1) does not apply to a retirant if all of the
following apply:
(a) The retirant is hired by the department of natural
resources for active wildland fire suppression.
(b) There is an immediate continual need for prequalified,
skilled, and trained personnel to address wildfire suppression.
(c) The retirant works no more than 600 hours in a fiscal
year.
(d) The retirant is hired in a position that is limited in
term, no benefits are paid, and the pay is not more than 70% of the maximum
hourly wage granted to classified civil service employees employed by the
department of natural resources to perform the same duties as the retirant for
the fiscal year during which the retirant is employed.
(e) The department of natural resources reports the
employment of a retirant under this subsection within 30 days after employment
and within 30 days after termination of employment or within 30 days after the
end of each fiscal year, whichever occurs first, to the state budget office and
the department of technology, management, and budget. The report required under
this subdivision must include the name of the retirant, the capacity in which
the retirant is employed, the equivalent civil service position in which the
retirant is employed, the hourly wage paid to the retirant, and the total hours
of service provided by the retirant for the fiscal year. The department of
natural resources may submit a report required under this subdivision
electronically.
(f) By March 1 of each year, the department of natural
resources submits a summary of all the reports required under subdivision (e)
for the preceding fiscal year to the house of representatives and senate appropriations
subcommittees that consider the budget of the
department of natural resources, the state budget office, the house and senate
fiscal agencies, and the department of technology, management, and budget. The
department of natural resources may submit a summary required under this
subdivision electronically.
(8) Subsection (1) does not apply to a retirant if all of the
following apply:
(a) The retirant is employed by the legislative service
bureau as legal counsel through a contractual arrangement.
(b) The legislative council administrator determines that, as
a result of the retirant's previous employment with this state, the retirant
possesses specialized expertise and experience necessary for the hiring of the
retirant and that the hiring of the retirant is the most cost-effective option
for this state.
(c) The legislative service bureau reports the employment of
a retirant under this subsection within 30 days after employment and within 30
days after termination of employment to the department of technology,
management, and budget, office of retirement services. The legislative service
bureau may submit a report required under this subdivision electronically.
(9) Subsection (1) does not apply to a retirant if all of the
following apply:
(a) The department of health and human services hires the
retirant as a psychiatrist to provide mental health services to individuals in
psychiatric hospitals operated by the department of health and human services.
(b) The department of health and human services determines
that, as a result of the retirant's previous employment with this state, the
retirant possesses specialized expertise and experience necessary
for the hiring of the retirant and that the hiring of the retirant is the most
cost-effective option for this state.
(c) The retirant retired before October 1, 2015 and after a
bona fide termination of employment.
(d) The department of health and human services reports the
employment of a retirant under this subsection within 30 days after employment
and within 30 days after termination of employment or within 30 days after the
end of each fiscal year, whichever occurs first, to the state budget office and
the department of technology, management, and budget. The report required under
this subdivision must include the name of the retirant, the capacity in which
the retirant is employed, the equivalent civil service position in which the
retirant is employed, the hourly wage paid to the retirant, and the total hours
of service provided by the retirant for the fiscal year. The department of
health and human services may submit a report required under this subdivision
electronically.
(e) By March 1 of each year, the department of health and
human services submits a summary of all the reports required under subdivision
(d) for the preceding fiscal year to the house of representatives and senate
appropriations subcommittees that consider the budget of the department of
health and human services, the state budget office, the house and senate fiscal
agencies, and the department of technology, management, and budget. The
department of health and human services may submit a summary required under
this subdivision electronically.
(10) Until September 30, 2023, subsection (1) does not apply
to a retirant if all of the following apply:
(a) The department of health and human services hires the
retirant as a mental health professional other than a psychiatrist to provide mental health services to individuals in
psychiatric hospitals operated by the department of health and human services.
(b) The retirant retired before October 1, 2015 and after a
bona fide termination of employment.
(d) The
department of health and human services reports the employment of a retirant
under this subsection within 30 days after employment and within 30 days after
termination of employment or within 30 days after the end of each fiscal year,
whichever occurs first, to the state budget office and the department of
technology, management, and budget. The report required under this subdivision
must include the name of the retirant, the capacity in which the retirant is
employed, the equivalent civil service position in which the retirant is
employed, the hourly wage paid to the retirant, and the total hours of service
provided by the retirant for the fiscal year. The department of health and
human services may submit a report required under this subdivision
electronically.
(e) By March 1 of each year, the department of health and
human services submits a summary of all the reports required under subdivision
(d) for the preceding fiscal year to the house of representatives and senate
appropriations subcommittees that consider the budget of the department of
health and human services, the state budget office, the house and senate fiscal
agencies, and the department of technology, management, and budget. The
department of health and human services may submit a summary required under this subdivision electronically.
(11)
Until December 31, 2020, subsection (1) does not apply to a retirant if all of
the following apply:
(a)
The Michigan unemployment insurance agency hires the retirant after March 15,
2020.
(b)
The department of labor and economic opportunity determines that, as a result
of the retirant's previous employment with this state, the retirant possesses
specialized expertise and experience necessary for the hiring of the retirant
and that the hiring of the retirant is the most cost-effective option for this
state.
(12)
Until the effective date of the amendatory act that added this subsection, subsection
(1) does not apply to a retirant if all of the following apply:
(a)
The Michigan occupational safety and health administration hires the retirant
after March 15, 2020.
(b)
The Michigan occupational safety and health administration determines that, as
a result of the retirant's previous employment with this state, the retirant
possesses specialized expertise and experience necessary for the hiring of the
retirant and that the hiring of the retirant is the most cost-effective option
for this state.
(c)
The Michigan occupational safety and health administration reports the
employment of the retirant under this subsection within 30 days after
employment or within 30 days after the effective date of the amendatory act
that added this subsection, whichever occurs first, and within 30 days after
termination of employment or within 30 days after the end of each fiscal year,
whichever occurs first, to the state budget office and the department of
technology, management, and budget. The report required under this subdivision
must include the name of the retirant, the capacity in which the retirant is
employed, the equivalent civil service position in which the retirant is
employed, the hourly wage paid to the retirant, and the total hours of service
provided by the retirant for the fiscal year. The Michigan occupational safety
and health administration may submit a report required under this subdivision
electronically.
(13)
(11) As used in this
section:
(a) "Mental health professional" means that term as
defined in section 100b of the mental health code, 1974 PA 258, MCL 330.1100b.
(b) "Mental health service" means service as that
term as defined in section 100d of the mental health code, 1974 PA 258, MCL
330.1100d.
(c) "Psychiatric hospital" means that term as
defined in section 100b of the mental health code, 1974 PA 258, MCL 330.1100b.
(d) "Psychiatrist" means that term as defined in
section 100c of the mental health code, 1974 PA 258, MCL 330.1100c.
Enacting section 1. This amendatory act does not
take effect unless Senate Bill No. 886 of the 100th Legislature is enacted into
law.