MI HB4265

Caps assumed rate of return on investments and discount rates at 6% for pension and 6% for retiree health care, effective with the state fiscal year ending September 30, 2021.

Requires layered amortization with fixed and closed periods not exceeding 10 years for unfunded liabilities, beginning with the state fiscal year ending September 30, 2028.

Permits qualified members who became members before March 5, 2023 to elect between March 6 and May 12, 2023 to opt out of retiree health insurance coverage and instead contribute up to 4% of salary to a Tier 2 account.

Provides one-time credits to health reimbursement accounts for individuals who first become members after March 4, 2023: $2,000 for those age 60 or older with 10+ years of service, and $1,000 for those under 60 with 10+ years of service.

Implements automatic enrollment features for qualified participants in Tier 2 to contribute the amount necessary to receive all eligible employer matching contributions, effective by 12 months after enactment.