MI HB6221

Changes unfunded actuarial accrued liability contribution rate calculations for non-university reporting units starting fiscal year 2017, applying rates to "payroll plus purchased services" instead of payroll alone, with a cap of 16.52%.

Establishes that any additional unfunded actuarial accrued liability contributions exceeding the 16.52% cap for non-university reporting units must be paid from the state school aid fund rather than local employer resources.

Modifies the calculation methodology for unfunded actuarial accrued liability to use "payroll plus purchased services" as the denominator for amortization periods not exceeding 50 years, beginning fiscal year 2017.

Adds definitions for "achievement authority," "purchased services" (including specific function and object codes from the Michigan Public School Accounting Manual), and "university reporting unit" to clarify which entities are subject to the new contribution rate structure.

Corrects a reference in the state school aid act from MCL 388.1893 to MCL 388.1891 and requires certification of actual payroll plus purchased services to the department director.