MI HB5516

Changes the language in Section 41 from "pursuant to" to "under" for actuarial valuations and related references to align terminology throughout the statute.

Restructures Section 41(2) to establish contribution rates for benefits as subject to multiple conditions, including specification of valuation methods for normal cost and unfunded actuarial accrued liability contributions.

Beginning in the 2014-2015 fiscal year, creates separate calculation methods for unfunded actuarial accrued liability contribution rates for non-university reporting units and university reporting units, with different amortization periods (up to 50 years for non-universities, ending by September 30, 2036 for universities).

Caps the unfunded actuarial accrued liability contribution rate at 20.96% of payroll for non-university reporting units and combines contribution rate limits at 20.96% for university reporting units covering both pension and health benefits.

Establishes that additional unfunded liability contributions beyond the 20.96% cap for non-university units beginning in 2014-2015 shall be paid from the school aid fund rather than from employer payrolls.