MI HB5842

Requires employer contributions to Tier 2 retirement accounts for certain public school employees to be paid from the state school aid fund beginning October 1, 2020, assuming 100% participation by all eligible members.

Modifies language in MCL 38.1359 and 38.1384b to use "may" instead of "shall be permitted to" and "must" instead of "shall" regarding member election options for retirement plan tiers.

Establishes that members who froze service credit as of the transition date must receive employer contributions equal to 100% of the first 3% of compensation they contribute to their Tier 2 accounts.

Updates subsection numbering in section 84b from (5) through (9) to (6) through (10) to accommodate the new provision requiring state school aid fund appropriations for employer contributions.