MI HB5355

Beginning with fiscal year ending September 30, 2022, unfunded actuarial accrued liability contributions must be paid using a level dollar method instead of a level percentage of payroll method for non-university reporting units.

Starting September 30, 2020, the unfunded actuarial accrued liability contribution rate for non-university, non-higher education reporting units applies to adjusted payroll based on growth rate of the reporting unit's payroll plus purchased services from previous fiscal years.

Beginning September 30, 2022, the unfunded actuarial accrued liability contribution sum due and payable must not be less than the amount due in the immediately preceding fiscal year, continuing until the liability is fully paid off.

For members who first became members before February 1, 2018, the payroll growth assumption rate for non-university reporting units must be reduced by 50 basis points annually beginning September 30, 2022, until the rate reaches zero.

Beginning April 1 following periodic risk assumption reviews (at least every 5 years), the office of retirement services must submit reports to legislative leadership and committees detailing forecasted rates of return, actual investment returns, and other actuarial assumptions affecting the retirement system.