BillCam

HB-4156, As Passed House, April 16, 2019

SUBSTITUTE FOR

HOUSE BILL NO. 4156

A bill to amend 1943 PA 240, entitled

"State employees' retirement act,"

by amending section 68c (MCL 38.68c), as amended by 2018 PA 357.

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.

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.

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.

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.

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.

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.

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.

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.

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.

(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) (10) As used in subsection (9):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) (a) "Mental health service" means service as that term as

defined in section 100d of the mental health code, 1974 PA 258, MCL

330.1100d.

section 100b of the mental health code, 1974 PA 258, MCL 330.1100b.

(d) (c) "Psychiatrist" means that term as defined in section

100c of the mental health code, 1974 PA 258, MCL 330.1100c.