HB-4800, As Passed Senate, September 18, 2007

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4800

     A bill to amend 1943 PA 240, entitled

"State employees' retirement act,"

(MCL 38.1 to 38.69) by adding section 68c.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 68c. (1) Beginning on the effective date of the

amendatory act that added this section, a retirant who is receiving

a retirement allowance under this act and is reemployed by this

state directly or indirectly, including, but not limited to,

reemployment on or after the effective date of the amendatory act

that added this section through contractual arrangement with other

parties, shall have his or her retirement allowance payments

suspended during the period of reemployment.

     (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 shall 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, then the benefits under medicare shall 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 shall be

coordinated as provided in the coordination of benefits act, 1984

PA 64, MCL 550.251 to 550.255.

     (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 shall be determined before the benefits provided pursuant to

this act.