HOUSE BILL No. 4330
March 8, 2017, Introduced by Reps. Bellino, Kahle, LaFave, Marino, Frederick, Leutheuser, Barrett, Griffin, Allor, Hauck, VanderWall, Hornberger, Noble, Glenn, Sheppard, Rendon, Wentworth, Hernandez, Johnson, Bizon, Miller, Inman, Howrylak and Hughes and referred to the Committee on Financial Liability Reform.
A bill to amend 1957 PA 261, entitled
"Michigan legislative retirement system act,"
by amending sections 50b and 79 (MCL 38.1050b and 38.1079), section
50b as amended by 1998 PA 501 and section 79 as amended by 2011 PA
200.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 50b. (1) For a retirant or a survivor or beneficiary of a
deceased retirant, or for a deferred vested member if that the
deferred vested member first became a member on or before January
1, 1995, the retirement system shall purchase and, subject to
subsection (3), pay the premium for hospitalization and medical
insurance coverage and dental and vision coverage for the retirant,
the 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 The retirement system
shall also pay health insurance premiums described in this section
in the manner prescribed in section 79.
(3) Beginning January 1, 2018, the retirement system shall pay
80% of the entire monthly premium for hospitalization and medical
insurance coverage and dental and vision coverage for the retirant,
the deferred vested member, and the spouses, eligible children, and
survivors of those retirants and deferred vested members who are
eligible for that coverage under subsection (1).
Sec. 79. (1) A former qualified participant 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 used in the actuarial present value calculation under
section 62 and the service requirements that would have applied to
that the former participant under Tier 1 for receiving health
insurance coverage under section 50b, if that the 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 will become a member of a health insurance
coverage group authorized pursuant to under 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 Until December 31, 2017, the portion of the health
insurance coverage premium paid by this state under this subsection
shall must be 90% of the payments for health insurance coverage
under section 50b. Beginning January 1, 2018, the portion of the
health insurance coverage premium paid by this state under this
subsection may not exceed 80% of the entire premium for health
insurance coverage described in 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 must 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 this
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 technology, management, and budget
receives notification from the United States internal revenue
service 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.
(7) A former qualified participant who does not meet the
vesting requirements of section 75(2) is not eligible for health
insurance benefits under this act.