SB-0546, As Passed Senate, June 26, 2007
SUBSTITUTE FOR
SENATE BILL NO. 546
A bill to amend 1980 PA 300, entitled
"The public school employees retirement act of 1979,"
by amending section 91 (MCL 38.1391), as amended by 2006 PA 617.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 91. (1) Except as otherwise provided in this section, the
retirement system shall pay the entire monthly premium or
membership or subscription fee for hospital, medical-surgical, and
sick care benefits for the benefit of a retirant or retirement
allowance beneficiary who elects coverage in the plan authorized by
the retirement board and the department. Upon the death of the
retirant, a retirement allowance beneficiary who became a
retirement allowance beneficiary under section 85(8) or (9) is not
a health insurance dependent and is not entitled to health benefits
under
this section except as provided in subsection (10) (14).
Except as otherwise provided in subsection (8), this subsection
does not apply to a retirant who first becomes a member after June
30, 2008.
(2) The retirement system may pay up to the maximum of the
amount payable under subsection (1) toward the monthly premium for
hospital, medical-surgical, and sick care benefits for the benefit
of a retirant or retirement allowance beneficiary enrolled in a
group health insurance or prepaid service plan not authorized by
the retirement board and the department, if enrolled before June 1,
1975, for whom the retirement system on July 18, 1983 was making a
payment towards his or her monthly premium.
(3) A retirant or retirement allowance beneficiary receiving
hospital, medical-surgical, and sick care benefits coverage under
subsection (1) or (2), until eligible for medicare, shall have an
amount equal to the cost chargeable to a medicare recipient for
part B of medicare deducted from his or her retirement allowance.
(4) The retirement system shall pay 90% of the monthly premium
or membership or subscription fee for dental, vision, and hearing
benefits for the benefit of a retirant or retirement allowance
beneficiary who elects coverage in the plan authorized by the
retirement board and the department. Payments shall begin under
this subsection upon approval by the retirement board and the
department of plan coverage and a plan provider. Except as
otherwise provided in subsection (8), this subsection does not
apply to a retirant who first becomes a member after June 30, 2008.
(5) The retirement system shall pay up to 90% of the maximum
of the amount payable under subsection (1) toward the monthly
premium or membership or subscription fee for hospital, medical-
surgical, and sick care benefits coverage described in subsections
(1) and (2) for each health insurance dependent of a retirant
receiving benefits under subsection (1) or (2). Payment shall not
exceed 90% of the actual monthly premium or membership or
subscription fee. The retirement system shall pay 90% of the
monthly premium or membership or subscription fee for dental,
vision, and hearing benefits described in subsection (4) for the
benefit of each health insurance dependent of a retirant receiving
benefits under subsection (4). Payment for health benefits coverage
for a health insurance dependent of a retirant shall not be made
after the retirant's death, unless the retirant designated a
retirement allowance beneficiary as provided in section 85 and the
dependent was covered or eligible for coverage as a health
insurance dependent of the retirant on the retirant's date of
death. Payment for health benefits coverage shall not be made for a
health insurance dependent after the later of the retirant's death
or the retirement allowance beneficiary's death. Payment under this
subsection and subsection (6) began October 1, 1985 for health
insurance dependents who on July 10, 1985 were covered by the
hospital, medical-surgical, and sick care benefits plan authorized
by the retirement board and the department. Payment under this
subsection and subsection (6) for other health insurance dependents
shall not begin before January 1, 1986. Except as otherwise
provided in subsection (8), this subsection does not apply to a
retirant who first becomes a member after June 30, 2008.
(6) The payment described in subsection (5) shall also be made
for each health insurance dependent of a deceased member or
deceased duty disability retirant if a retirement allowance is
being paid to a retirement allowance beneficiary because of the
death of the member or duty disability retirant as provided in
section 43c(c), 89, or 90. Payment for health benefits coverage for
a health insurance dependent shall not be made after the retirement
allowance beneficiary's death.
(7) The payments provided by this section shall not be made on
behalf of a retiring section 82 deferred member or health insurance
dependent of a deferred member having less than 21 full years of
attained credited service or the retiring deferred member's
retirement allowance beneficiary, and shall not be made on behalf
of a retirement allowance beneficiary of a deferred member who dies
before retiring. The retirement system shall pay, on behalf of a
retiring section 82 deferred member or health insurance dependent
of a deferred member or a retirement allowance beneficiary of a
deceased deferred member, either of whose allowance is based upon
not less than 21 years of attained credited service, 10% of the
payments provided by this section, increased by 10% for each
attained full year of credited service beyond 21 years, not to
exceed 100%. This subsection applies to any member who first became
a member on or before June 30, 2008 and attains deferred status
under section 82 after October 31, 1980.
(8) For a member or deferred member who first becomes a member
after June 30, 2008, the retirement system shall pay up to 90% of
the monthly premium or membership or subscription fee for the
hospital, medical-surgical, and sick care benefits plan, the dental
Senate Bill No. 546 as amended June 26, 2007
plan, vision plan, and hearing plan, or any combination of the
plans for the benefit of the retirant and his or her retirement
allowance beneficiary and the retirant's health insurance
dependents, or for the benefit of the deceased member's retirement
allowance beneficiary if the retirant or deceased member has 30
years or more of service credit under this act, and the retirant,
deceased retirant, or deceased member was at least 60 years of age
at the time of application for benefits under this section. <<If the
retirant or deceased member is less than 60 years of age at the time of application for benefits under this section, the retirement system shall pay 90% of the monthly premium or membership or subscription fee for the hospital, medical-surgical, and sick care benefits plan, the dental plan, vision plan, and hearing plan, or any combination of the plans for the benefit of the retirant and his or her retirement allowance beneficiary and the retirant's health insurance dependents, or for the benefit of the deceased member's retirement allowance beneficiary if the retirant or deceased member has 30 or more years of service credit granted under section 68.>> If a
retirant, deceased retirant, or deceased member described in this
subsection has 10 or more but less than 30 years of service credit
under this act and the retirant was at least 60 years of age at the
time of application for benefits under this section, the retirement
system shall pay a portion of the monthly premium or membership or
subscription fee for the plans or combination of plans equal to the
product of 3% and the retirant's, deceased retirant's, or deceased
member's years of service. This subsection does not apply to a
member who receives a disability retirement allowance under section
86 or 87 or to a deceased member's retirement allowance beneficiary
under section 90.
(9) The retirement system shall not pay the premiums or
membership or subscription fees under subsection (8) until the
retirant or retirement allowance beneficiary requests enrollment in
the plans or combination of plans in writing in the manner
prescribed by the retirement system.
(10) A member who retires under section 43b or 81 and who
elects to purchase service credit on or after July 1, 2008 shall
not be eligible for health benefits under this section until the
first date that the member would have been eligible to retire under
section 43b or 81 if he or she had not purchased the service credit
and had accrued a sufficient amount of service credit pursuant to
section 68. A member who becomes a member on or after July 1, 2008
shall not be eligible for health benefits under this subsection
until at least the time of application under subsection (8). The
retirement system shall apply a method that enables it to make the
determination under this subsection.
(11) Except for a member who retires under section 86 or 87 or
a member who meets the requirements under subsection (7), the
retirement system shall not pay the benefits provided in subsection
(1) unless the member was employed and has received a minimum total
of 1/2 of a year of service credit granted pursuant to section 68
during the 2 school fiscal years immediately preceding the member's
retirement allowance effective date or the member has received a
minimum of 1/10 of a year of service credit granted pursuant to
section 68 during each of the 5 school fiscal years immediately
preceding the member's retirement allowance effective date.
(12) (8)
Any retirant or retirement
allowance beneficiary
excluded from payments under this section may participate in the
hospital, medical-surgical, and sick care benefits plan, the dental
plan, vision plan, or hearing plan, or any combination of the plans
described in this section in the manner prescribed by the
retirement system at his or her own cost.
(13) (9)
The hospital, medical-surgical, and
sick care
benefits plan, dental plan, vision plan, and hearing plan that
covers retirants, retirement allowance beneficiaries, and health
insurance dependents pursuant to this section shall contain a
coordination of benefits provision that provides all of the
following:
(a) If the person covered under the hospital, medical-
surgical, and sick care benefits plan is also eligible for medicare
or medicaid, or both, then the benefits under medicare or medicaid,
or both, shall be determined before the benefits of the hospital,
medical-surgical, and sick care benefits plan provided pursuant to
this section.
(b) If the person covered under any of the plans provided by
this section is also covered under another plan that contains a
coordination of benefits provision, the benefits shall be
coordinated as provided by 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 section 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 of the plan
provided pursuant to this section.
(14) (10)
A surviving spouse selected as a
retirement
allowance beneficiary under section 85(8) or (9) may elect the
insurance coverages provided in this section provided that payment
for the elected coverages is the responsibility of the surviving
spouse and is paid in a manner prescribed by the retirement system.
(15) (11)
For purposes of this section:
(a) "Health insurance dependent" means any of the following:
(i) Except as provided in subsection (1), the spouse of the
retirant or the surviving spouse to whom the retirant or deceased
member was married at the time of the retirant's or deceased
member's death.
(ii) An unmarried child, by birth or adoption, of the retirant
or deceased member, until December 31 of the calendar year in which
the child becomes 19 years of age.
(iii) An unmarried child, by birth or adoption, of the retirant
or deceased member, until December 31 of the calendar year in which
the child becomes 25 years of age, who is enrolled as a full-time
student, and who is or was at the time of the retirant's or
deceased member's death a dependent of the retirant or deceased
member as defined in section 152 of the internal revenue code.
(iv) An unmarried child, by birth or adoption, of the retirant
or deceased member who is incapable of self-sustaining employment
because of mental or physical disability, and who is or was at the
time of the retirant's or deceased member's death a dependent of
the retirant or deceased member as defined in section 152 of the
internal revenue code.
(v) The parents of the retirant or deceased member, or the
parents of his or her spouse, who are residing in the household of
the retirant or retirement allowance beneficiary.
(vi) An unmarried child who is not the child by birth or
adoption of the retirant or deceased member but who otherwise
qualifies to be a health insurance dependent under subparagraph
(ii), (iii), or (iv), if the retirant or deceased member is the legal
guardian of the unmarried child.
(b) "Medicaid" means benefits under the federal medicaid
program established under title XIX of the social security act,
chapter 531, 49 Stat. 620, 42 USC 1396 to 1396f, 1396g-1 to 1396r-
6, and 1396r-8 to 1396v.
(c) "Medicare" means benefits under the federal medicare
program established under title XVIII of the social security act,
chapter 531, 49 Stat. 620, 42 USC 1395 to 1395b, 1395b-2, 1395b-6
to 1395b-7, 1395c to 1395i, 1395i-2 to 1395i-5, 1395j to 1395t,
1395u to 1395w, 1395w-2 to 1395w-4, 1395w-21 to 1395w-28, 1395x to
1395yy, and 1395bbb to 1395ggg.
Enacting section 1. This amendatory act takes effect January
1, 2009.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. 547 of the 94th Legislature is enacted into
law.