MI HB4261

Changes unfunded actuarial accrued liability (UAAL) contribution method from rate-based to level dollar amount starting with fiscal year ending September 30, 2022 for non-university reporting units.

Modifies payroll growth assumption reduction schedule by establishing 2.25% rate for fiscal year 2022, then reducing by 50 basis points annually starting fiscal year 2023 (or 25 basis points if UAAL contribution impact is 7% or more).

Allows office of retirement services and retirement board to agree to additional basis point reductions beyond the mandatory 50-basis-point annual reduction to the payroll growth assumption.

Makes technical clarifications including changing "immediately preceding" to specified timeframes, replacing "sum" with "amount," and updating terminology for fiscal year certifications.

Requires periodic reporting (every April 1) to legislature on forecasted and actual investment returns, mortality, retirement age, payroll growth, and other material financial assumptions affecting the retirement system.