MI HB4275

Allows counties, cities, villages, and townships through December 31, 2018 to issue municipal securities without voter approval to pay unfunded pension liabilities or implement defined contribution plans to replace defined benefit plans.

Permits issuance of municipal securities through December 31, 2018 to fund unfunded accrued health care liabilities, with proceeds deposited in a health care trust fund and funded through a cost mitigation and wellness plan.

Requires comprehensive financial plans including analysis of current and future obligations, evidence that issuance will eliminate unfunded liabilities, debt service amortization schedules, and certification of accuracy before issuance.

Establishes credit rating requirements: municipalities must have AA or higher rating to issue securities, or A or higher rating if the security is insured at issuance.

Restricts municipalities that issue pension-related securities from rescinding the cessation of accruals or closure of defined benefit plans while securities are outstanding, though benefits may be reduced for future service years.