MI SB1240

Amends the Municipal Employees Retirement Act of 1984 to establish that the retirement system becomes a public corporation independent from state government on the certification date, no longer operating within the executive branch.

Grants the retirement board exclusive authority to determine benefit eligibility, contribution amounts, pension programs, and allows municipalities and courts to opt into the system, with provisions remaining materially unchanged at the certification date but allowing future expansions to include defined contribution and health benefit programs.

Establishes a 9-member retirement board composition including 2 appointed members with retirement system expertise, 1 retiree member, 3 officer members from participating municipalities/courts, and 3 employee members, with 5 members constituting a quorum and requiring 5 concurring votes for board decisions.

Adds temporary expansion provisions allowing for 2 additional transition members for 2 years when a distressed municipality with over $2 billion in pension assets joins the system, increasing quorum and voting requirements from 5 to 6 members during that period.

Requires the retirement board to conduct annual actuarial valuations, audits by certified public accountants, and prepare annual reports distributed to the governor, legislature, participating municipalities, and courts; authorizes the board to employ a chief executive officer and other professional services with full procurement control.