MI HB5387

Amends the Public School Employees Retirement Act to modify rules for retirants who become re-employed by school districts or other entities.

Removes the "until July 1, 2014" sunset date from subsection (9), making permanent the exemption for substitute teachers whose annual earnings do not exceed 1/3 of their final average compensation and eliminating the requirement that reporting units pay 100% of unfunded actuarial accrued liability contributions for such substitute teachers.

Requires substitute teachers employed directly by reporting units or through third-party entities to report their engagement and earnings to the retirement system at regular intervals, with employers obligated to provide necessary information for reporting compliance.

Retirants employed as substitute teachers, instructional coaches, or school improvement facilitators may continue receiving retirement benefits if their earnings remain below 1/3 of final average compensation and cannot use such employment for retirement allowance recomputation.

Maintains existing provisions allowing the retirement system to offset benefits against amounts owed and preserving rules for university employment and critical shortage discipline exceptions.