MI HB5478

Amends the Public School Employees Retirement Act to require public school academies without retirement system members to be counted as "reporting units" for calculating unfunded actuarial accrued liability (UAAL) contributions based on their full-time employee payroll.

Establishes that beginning on the effective date, public school academies without members in the retirement system must include their payroll in UAAL contribution calculations, making them responsible for pension funding obligations previously not applied to them.

Modifies terminology in sections 7 and 41 from "this retirement system" to "the retirement system" and changes grammatical constructions for consistency throughout the act.

Adds provisions requiring the office of retirement services to submit annual reports to legislative leadership detailing forecasted investment returns at multiple probability levels (5%, 25%, 50%, 75%, 95%), actual returns, and actuarial assumptions affecting system finances.

Defines "current operating expenditures" to include instructional and support services, with references to the Michigan Public School Accounting Manual, and establishes July 13, 2017 as the effective date for amendments related to public school academy payroll inclusion.