MI HB6275

Increases the alternative investment threshold for pension fiduciaries with $1 billion or more in assets from 15% to 20% of system assets, or allows the state treasurer to invest up to 20% regardless of asset size.

Adds a new provision allowing pension systems associated with municipalities with populations greater than 700,000 to invest in municipal bonds up to applicable limitations under prudent investor standards.

Permits municipal bonds selected for investment by large-city pension systems to be purchased at discounted rates below market value, with the municipality required to use the savings differential for police, fire, and other core city services.

Exempts municipal bonds issued by cities with populations over 700,000 under the Home Rule City Act from the taxable-equivalent yield requirement for tax-exempt securities investments.

Bill effectiveness is contingent upon enactment of Senate Bill (unnumbered) or House Bill 6274 of the 95th Legislature.