MI HB4263

Modifies unfunded actuarial accrued liability contribution calculations for public school employee retirement system, requiring faster payback of differences between estimated and actual contributions beginning October 1, 2022 (34% in first year, 50% in following 2 years, instead of previous 20% and 25% schedule).

Implements layered amortization beginning September 30, 2025 for open pension plans and September 30, 2030 for closed plans, separately amortizing different components over fixed periods not exceeding 10-15 years using level dollar method.

Reduces pension and retiree health care payroll growth assumption rate for non-university reporting units to 1.75% for fiscal year ending September 30, 2023, then reduces by 50 basis points annually until reaching zero (with discretionary 25 basis point reductions available if contribution impact exceeds 7%).

Limits assumed investment return rate to 6% for pension and 6% for retiree health benefits beginning fiscal year 2022, and requires annual April 1 reports to legislature on forecasted investment returns at multiple probability levels (5%-95%) plus actual 10, 15, and 20-year returns.

Takes immediate effect upon enactment.