MI SB1178

Amends the Public Employee Retirement System Investment Act to revise language regarding required employer contributions, changing "shall" to "must" throughout Section 20m.

For the Tier 1 retirement plan under the Michigan Public School Employees' Retirement System, requires the amortization period for determining employer contributions to follow Section 41 of the Public School Employees Retirement Act of 1979 for fiscal years beginning after December 31, 2016.

Maintains amortization period limits of 40 years for fiscal years before January 1, 2006, and 30 years for fiscal years after December 31, 2005, except where otherwise specified for specific retirement systems.

For certain Tier 1 retirement plans (state employees, public school employees, and state police), requires the unfunded actuarial liability contribution to equal the assumed real rate of investment return multiplied by the unfunded actuarial accrued liability for the fiscal year beginning October 1, 2006.

Requires governing boards and actuaries to follow standards of practice from the Actuarial Standards Board of the American Academy of Actuaries when determining required employer contributions.