MI HB4531

Beginning with fiscal year ending September 30, 2022, the unfunded actuarial accrued liability contribution amount due must not decrease from the preceding fiscal year until the liability is fully paid.

Starting fiscal year ending September 30, 2021, the retirement system shall use layered amortization with fixed and closed periods not exceeding 10 years using level dollar amortization method.

Beginning fiscal year ending September 30, 2021, the assumed rate of investment return and discount rate must not exceed 6% per annum, and the most recent mortality assumptions from the Actuarial Standards Board must be used.

For differences occurring on or after October 1, 2021, any difference between estimated and actual compensation and contribution rates must be paid by appropriation from the state school aid fund in the following fiscal year rather than through employer installment payments.

Payroll growth assumptions for non-university reporting units are reduced by 50 basis points beginning fiscal year 2022, with potential further reductions if unfunded liability impacts exceed 7% of total contribution amount.