Michigan Compiled Laws Act 77 Of 2010 Public Employee Retirement Health Care Funding Act (38.2731 - 38.2747)

AN ACT to authorize and create irrevocable trusts and individual accounts within the trusts for the purpose of holding, investing, and distributing assets to be used for certain postemployment health care benefits and reimbursement of medical expenses; to set forth certain rights that public employees have in retirement health care benefits and reimbursement of medical expenses under certain circumstances; to provide for the establishment and amendment of certain irrevocable trust agreements; and to prescribe certain powers and duties of certain retirement systems, state departments, public officials, and public employees.

History: 2010, Act 77, Imd. Eff. May 19, 2010 ;-- Am. 2011, Act 265, Imd. Eff. Dec. 15, 2011

Section 38.2731 Short Title; Meanings Of Words And Phrases.
(1) This act shall be known and may be cited as the "public employee retirement health care funding act". (2) For purposes of this...
Section 38.2732 Definitions; D To H.
(1) "Department" means the department of technology, management, and budget. (2) "Employer contributions" means the amount transferred by an employer to a funding account...
Section 38.2732a Definitions; M To P.
(1) "Mandatory contributions" means mandatory amounts contributed by a participating member, which amounts, to the extent permitted by applicable law, are treated as a...
Section 38.2732b Definitions; R To V.
(1) "Retirement act" means 1 or more of the following: (a) The state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69. (b)...
Section 38.2733 Irrevocable Trust; Authorization; Creation; Establishment; Governing Board Of Each Retirement System As Grantor; Members Of Retirement System Board As Trustees; Deposits; Distributions; Funding Account; Preparation Of Annual Financial Statements; Establishment And Maintenance Of Health Reimbursement Accounts; Separate Prefunding Account.
(1) One irrevocable trust is authorized and created by this act for each retirement system. An irrevocable trust established under this subsection shall at...
Section 38.2734 Assets As Irrevocable.
(1) Except as otherwise provided in this section and sections 8 and 17, assets contributed to the irrevocable trust are irrevocable and may not...
Section 38.2735 Assets; Use; Limitation.
The assets of the irrevocable trust are to be used solely to perform this essential function of state government. The trust shall only provide...
Section 38.2736 Assets Not Subject To Certain Processes Of Law.
The assets of the irrevocable trust and the ability of a member or past member of a retirement system to receive retirement health care...
Section 38.2737 Assets; Diversion For Other Purposes Prohibited.
The assets of the irrevocable trust shall be used exclusively for the benefit of past members and their funding account dependents and shall not...
Section 38.2738 Remaining Trust Assets; Dissolution; Distribution; Remaining Health Reimbursement Account Assets.
(1) Any assets remaining in the funding account after all payments for eligible retirement health care benefits have been paid and all other liabilities...
Section 38.2739 Written Trust Agreement; Contents.
The written trust agreement for each retirement system shall contain all of the following provisions consistent with this act: (a) Recitals describing the creation...
Section 38.2740 Retirement Health Care Benefits; Prefunding; Credit To Funding Account; Contribution Or Credit To Health Reimbursement Account.
(1) This state, an employer of a member within a retirement system, a member, or any other person may contribute amounts to a funding...
Section 38.2740a Health Reimbursement Account; Vesting; Rights.
(1) A member or participating member is 100% vested in mandatory contributions and voluntary contributions made to his or her health reimbursement account, subject...
Section 38.2741 Written Plan Document; Terms And Conditions Of Payments Of Retirement Health Care Benefits And Reimbursements Of Medical Expenses.
(1) The trustees shall establish a separately written plan document that governs the terms and conditions of payments of retirement health care benefits and...
Section 38.2742 Severability.
(1) If the department receives notification from the United States internal revenue service that this act or any portion of this act will cause...
Section 38.2743 Trusts; Validity.
The trusts created by this act shall not be deemed to be invalid by reason of any indefiniteness or uncertainty of the persons designated...
Section 38.2744 Taxation Of Assets And Income; Exemption.
All assets and income of the trusts shall be exempt from taxation by this state or any political subdivision of this state. Except as...
Section 38.2745 Trustee; Exception From Certain Responsibilities; Indemnification.
(1) A trustee shall not be any of the following: (a) Personally liable for any liability, loss, or expense suffered by the trust, unless...
Section 38.2747 Correction Of Error By Trustees.
If a change or error in any records of the trust results in a member, past member, or his or her dependent paying into...

Last modified: October 10, 2016