MI HB4264

Lowers the maximum assumed rate of return and discount rate for pension calculations from 8% to 6%, and for retiree health care from 8% to 6.2%, effective fiscal year ending September 30, 2021

Reduces the maximum actuarially assumed interest rate and discount rate for determining actuarial equivalent retirement allowances from current levels to 6.75%, effective fiscal year ending September 30, 2022

Implements layered amortization for unfunded actuarial liabilities beginning fiscal year ending September 30, 2028, using fixed and closed periods not exceeding 10 years with level dollar amortization method

Accelerates payment schedule for contribution rate differences occurring on or after October 1, 2022, requiring 34% payment in the next fiscal year and 50% in each of the following 2 fiscal years, instead of the previous 20% and 25% schedule

Updates mortality tables and investment return assumptions to use current actuarial standards of practice and establishes more frequent actuarial valuation methods for the state employees' retirement system