Bill Text: MI HB4508 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Labor; public service employment; employment with same governmental entity in which a defined benefit pension is drawn; prohibit. Creates new act.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-04-10 - Printed Bill Filed 04/10/2013 [HB4508 Detail]
Download: Michigan-2013-HB4508-Introduced.html
HOUSE BILL No. 4508
April 9, 2013, Introduced by Reps. Cavanagh, Ananich, Geiss, McMillin, Shirkey, McCready, Lane, Durhal, Robinson, Santana, Cotter, Tlaib, Hovey-Wright, Townsend, Rutledge, Howrylak, Daley, Lauwers, Potvin, Bumstead, Yonker, Poleski, Somerville, Zemke, Olumba and MacMaster and referred to the Committee on Government Operations.
A bill to prohibit public employers in this state from
employing an individual who is receiving benefits from the public
employer's defined benefit retirement plan; and to provide
sanctions.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) This act shall be known and may be cited as the
"jobs initiative and pension stability act".
(2) The legislature intends this act to assist public
employers in assessing their future employment needs, training
the next generation of workers, and sustaining public employee
pensions.
Sec. 3. As used in this act, "public employer" means this
state or a county, township, city, village, authority, or other
political subdivision of this state, and includes any entity
jointly created by 2 or more of those entities.
Sec. 5. (1) Except as otherwise provided in section 5 of
article XI of the state constitution of 1963, section 68c of the
state employees' retirement act, 1943 PA 240, MCL 38.68c, or
section 61 of the public school employees retirement act of
1979, 1980 PA 300, MCL 38.1361, a public employer shall not
directly, or indirectly through a contract with a third party,
employ an individual who is receiving retirement benefits from a
public employee defined benefit retirement plan of that public
employer. This section does not apply if the individual waives his
or her right to receive previously accrued retirement benefits from
that public employer's defined benefit retirement plan while
reemployed by the public employer.
(2) A public employer that violates this section shall
immediately discontinue the violation of this section and shall
reimburse the defined benefit retirement plan for retirement
benefits that the defined benefit retirement plan paid to the
individual during the prohibited employment.
(3) If a public employer violates this act, the attorney
general shall apply to the court of claims for an order to permit
the state treasurer to reduce any payment that is due to that
public employer under the Glenn Steil state revenue sharing act of
1971, 1971 PA 140, MCL 141.901 to 141.921, by an amount equal to 2
times the amount of the payments made in violation of this section.
Sec. 7. This act does not apply to an individual who is
employed by a public employer and receiving benefits under the
public employer's defined benefit retirement plan on the effective
date of this act.