HB-5548 Summary

• Beginning January 1, 2013, the Michigan legislative retirement system shall pay 80% (instead of 100%) of the entire monthly premium for hospitalization, medical, dental, and vision insurance coverage for retirants, deferred vested members, and their eligible dependents and survivors.

• Until December 31, 2012, the state shall pay 90% of health insurance premiums for former qualified participants vested under specific provisions; beginning January 1, 2013, this rate decreases to 80% of the entire premium.

• Former qualified participants vested under section 75(2)(a) or (c) shall pay the remaining portion of their health insurance premiums to the retirement system after the state's contribution.

• Former qualified participants vested under section 75(2)(b) remain eligible for state-paid premium amounts equal to those paid for Tier 1 retirants, with individuals paying any remaining premium balance.

• Provision becomes void if the U.S. Internal Revenue Service notifies the state that this section would cause the retirement system to lose tax-qualified status under the Internal Revenue Code.