MI HB5768

Beginning with fiscal year ending September 30, 2017, requires non-university reporting units, tax-supported community/junior colleges, and district libraries to apply the unfunded actuarial accrued liability (UAAL) contribution rate to combined payrolls plus purchased services, capped at 16.52%.

Adds definitions for "achievement authority" and "purchased services," defining purchased services to include specific instructional and support services expenditures and functions as outlined in the Michigan Public School Accounting Manual.

Removes requirement that additional UAAL contributions beyond the cap be paid from the school aid fund, instead requiring state appropriation under article III of the state school aid act of 1979.

Changes market gain/loss treatment by requiring that gains or losses incurred before September 30, 2006 must not be considered in unfunded actuarial accrued liability calculations, rather than allowing discretion.

Modifies language regarding compensation estimates to include purchased services estimates and actual payroll plus purchased services in annual certification processes to the department director.