MI HB6482

Amends the Judges Retirement Act of 1992 to change actuarial valuation methods for computing contribution rates, replacing "terminal funding" with "individual projected benefit entry age normal cost method" effective with the September 30, 2017 valuation.

Establishes new Section 509a allowing judges and qualified participants ineligible for retiree health insurance to receive employer matching contributions up to 2% of compensation to a Tier 2 account, with employees able to contribute up to 2% themselves.

Requires the retirement system to implement automatic enrollment by April 2, 2019 that defaults qualified participants to contribute the amount needed to receive all eligible matching contributions unless they elect a lesser amount.

Permits the state to use employee contributions to the 457 deferred compensation plan as a basis for employer matching contributions to Tier 2 or tax-deferred accounts, with matching contributions not required to go to the same plan as employee contributions.

Makes technical amendments to Section 604 to update references to Internal Revenue Service regulations, clarify IRC compliance language, and establish that retirement system assets must be held in trust solely for member benefits and cannot exceed IRC Section 415 benefit limitations.