MI HB5803

Eliminates the floor on normal cost contribution rates for retiree health benefits beginning in fiscal year ending September 30, 2026, allowing rates to decrease if actuarially determined.

Reduces the unfunded actuarial accrued liability contribution rate cap for non-university reporting units from 20.96% to 15.21% of payroll beginning fiscal year ending September 30, 2026.

Eliminates required member contributions of 3% of compensation to health care funding accounts beginning fiscal year ending September 30, 2026 for members who became members before September 4, 2012.

Establishes a phased reduction in pension and retiree health care payroll growth assumption rates for non-university reporting units, reducing by 50 basis points annually beginning fiscal year ending September 30, 2025 until reaching zero.

Effective date: 91 days after final adjournment of the 2024 regular legislative session.