Contractor Loophole
December 29, 2007 (letter to Lansing State Journal)



Fix state loophole

A law went into effect Oct. 1 in Michigan that requires a state retiree who returns to work for the state as contractual employee to forfeit his pension during the period of employment.

However, the law defines a contractual employee as a person employed by the state "through a contractual arrangement with other parties."

Therefore, it does not apply if the retiree is the independent contractor rather than an employee of the contractor.

That is the interpretation of the Office of Retirement Services, according to a letter I received Dec. 20.

It appears to be a major loophole. Let's get it fixed.

Steve Harry