MI HB4190

Establishes a dual contribution rate structure for public local school districts beginning in the 2013-2014 fiscal year, applying unfunded actuarial accrued liability contributions to both payroll (capped at 20.96%) and current operating expenditures (capped at 11.9%).

Requires the actuary to assume an 8.00% annual rate of return on investments (or 7.00% for members joining after July 1, 2010) and a 4% base salary increase assumption plus age-related merit and longevity increases.

Defines "current operating expenditures" for school districts using Michigan Public School Accounting Manual codes, excluding capital outlay, debt service, community services, and transfers.

Beginning in the 2013-2014 fiscal year, applies a 3.5% annual increase assumption to current operating expenditure projections in actuarial valuations.

Maintains calculation methodology using individual projected benefit entry age normal cost method for contribution rates, with unfunded liabilities amortized over a period not exceeding 50 years.