MI HB6019

Amends Section 41 of the Public School Employees Retirement Act to change contribution rate calculations for unfunded actuarial accrued liabilities starting with the 2016-2017 fiscal year.

Requires public local school districts to apply the unfunded actuarial accrued liability contribution rate to calculated current operating expenditures rather than payroll, with a cap not to exceed 11.9%.

Maintains the unfunded actuarial accrued liability contribution rate applied to payroll at a maximum of 20.96%, calculated after rates for other reporting units are determined.

Establishes a 3.5% annual current operating expenditure increase assumption for actuarial calculations beginning in the 2016-2017 fiscal year.

Defines "current operating expenditures" for public local school districts to include instructional and support services expenditures per the Michigan Public School Accounting Manual, excluding capital outlay, debt service, and community services.