MI HB5898

Changes language in section 42 of the Public School Employees Retirement Act from mandatory "shall" to permissive "must" throughout various subsections regarding contributions and reporting.

Increases the maximum interest rate charged on late contribution remittances from 6% per annum to 8% per annum.

Modifies subsection (2) to change the effective date for employer pickup of member contributions from "January 1, 1987" to "December 31, 1986" and updates related statutory language.

Grants the state budget director authority to direct the superintendent of public instruction to withhold state school aid or higher education appropriations to reporting units that fail to comply with contribution and reporting requirements.

Updates terminology throughout the section, including changing "internal revenue service" to "Internal Revenue Service" and replacing archaic phrasing like "in lieu" with "instead" and "pursuant to" with "under."