HB 6154

HOUSE BILL NO. 6154
A bill to amend 1986 PA 182, entitled
"State police retirement act of 1986,"
by amending section 42a (MCL 38.1642a), as added by
2018 PA 674.
the people of the state of michigan enact:
Sec. 42a. (1) A member who first becomes a
member on or after June 10, 9, 2012 must
not receive any health insurance coverage premium from the retirement system
under section 42. In Except as otherwise provided in this subsection, in lieu
of any health insurance coverage premium that might have been paid by the
retirement system under section 42, a member's employer shall make a matching
contribution up to 2% of the member's compensation to the Tier 2 plan for each
member who first becomes a member on or after
June 10, 9, 2012.
Beginning on the effective date of the amendatory act
that added this sentence, in lieu of any health insurance coverage premium that
might have been paid by the retirement system under section 42, a member's
employer shall make a matching contribution up to 4% of the member's
compensation to the Tier 2 plan for each member who first becomes a member
after June 9, 2012. A matching contribution under this subsection must
not be used as the basis for a loan from an employee's Tier 2 account.
(2) A member who
first becomes a member on or after June 10, 9, 2012 may
make a contribution up to 2% of the member's compensation to a Tier 2 account.
A member described in this subsection may make additional contributions to his or her the member's Tier
2 account as permitted by the department and the internal revenue code.
(3) Except as
otherwise provided in this subsection, a member is vested in employer
contributions made to his or her Tier 2 account under subsections (1) and (2)
according to the vesting provisions under section 42b(2). A member who is
eligible for health insurance coverage under section 42 or as a result of
benefits provided under sections 25 to 28 is not vested in any employer
contributions under subsection (1) and forfeits the contributions and earnings
on the contributions.
(4) The
contributions described in this section must begin with the first payday after
the member is employed and end on his or her the member's termination of employment.
(5) An individual
who was a former member on June 9, 2012 and who is reemployed by the department
of state police and who subscribes to the constitutional oath of office after
June 10, 2012 is treated in a manner as determined by the retirement system in
consultation with the office of state employer.
(6) In lieu of any
other health insurance coverage that might have been paid by the retirement
system, a $2,000.00 credit to a health reimbursement account within the trust
created under the public employee retirement health care funding act, 2010 PA
77, MCL 38.2731 to 38.2747, must be made by the employer for a member who first
becomes a member on or after June 10, 9, 2012 who
has at least 10 years of service at his or her the member's first termination of employment.
(7) The retirement
system shall determine a method to implement subsections (5) and (6), including
a method for crediting the amounts in subsection (6) to comply with any
agreements between the office of state employer and members, and the internal
revenue code, as applicable.