MI HB5092

Tier 1 qualified participants must contribute 2% of compensation to Tier 2 accounts, with employers matching 50% of the first 2% of employee contributions.

Tier 2-only qualified participants must contribute 6% of compensation to Tier 2 accounts, with employer matching changing from 50% of first 6% (until January 31, 2018) to 100% of first 3% (beginning February 1, 2018).

Beginning February 1, 2018, all employer contributions for Tier 2-only participants must be funded through specific appropriations from the state school aid fund, with the legislature required to annually appropriate funds assuming 100% participation.

Tier 2-only participants under section 81d receive an employer contribution equal to 4% of compensation starting with the first pay period after October 1, 2017.

Employees and employers may make additional voluntary contributions beyond required amounts, subject to department approval and Internal Revenue Code limits.