MI HB4266

Requires the retirement board to adopt the most current mortality tables appropriate for the population characteristics beginning with the state fiscal year ending September 30, 2022.

Mandates annual reports to legislative leadership and fiscal agencies including forecasted rates of return at five probability levels (5%, 25%, 50%, 75%, 95%), actual 10-15-20 year returns, and mortality, retirement age, and payroll growth assumptions.

Implements layered amortization for unfunded actuarial accrued liability beginning September 30, 2025 for open plans and September 30, 2030 for closed plans, using fixed closed periods not exceeding 10 years for closed plans and 15 years for open plans.

Accelerates employer payment of contribution differences occurring after October 1, 2022 to require 34% payment in the next fiscal year and 50% of remaining differences in each of the following two years, compared to the previous 20-25% phased approach.

Sets a maximum assumed rate of return on investments at 6.15% for pension and 6.25% for health insurance coverage as of September 30, 2021, changeable only with retirement board and department director approval.