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.