The bill amends section 12a of the 1851 PA 156, enhancing the powers and duties of county boards of commissioners in Michigan regarding employee benefits. It allows these boards to provide various types of insurance coverage, including group life, health, accident, hospitalization, and disability coverage for county employees and their dependents. Additionally, counties with 100 or more employees are permitted to self-insure for health and disability coverage. The bill establishes guidelines for retirement benefits, mandating that at least 60% of these benefits be based on a percentage of the employee's average final compensation, and outlines eligibility criteria for benefits upon termination or disability. It also allows for the creation of a board of trustees to manage retirement plans and requires counties to maintain actuarial reserves for financial stability.

Furthermore, the bill introduces provisions for the investment of county retirement plan funds, financing, and payment of benefits, including mandatory and voluntary contributions from employees. It allows members who have served in the Armed Services to receive credited service for up to five years of active duty, contingent upon certain conditions. The bill clarifies the reemployment conditions for retirants, ensuring their benefits remain unchanged if they return to work for a different county or certain courts. It also includes guidelines for recalculating pension benefits, handling retirement allowances in divorce cases, and incorporating past or present credit union employees into the retirement plan. Importantly, the bill mandates that county boards create a written policy for uniform application of these provisions and states that pension benefits are subject to the Protecting Local Government Retirement and Benefits Act.

Statutes affected:
Substitute (H-2): 46.12
House Introduced Bill: 46.12
As Passed by the House: 46.12