MI SB0911

Beginning in fiscal year ending September 30, 2025, eliminates the required 3% member contribution to retiree health benefits funding accounts for members who first became members before September 4, 2012.

For fiscal year ending September 30, 2025, caps unfunded actuarial accrued liability contribution rate at 17.46% for non-university reporting units (reduced from 20.96%), with further annual reductions to 17%, 16%, and 15.21% for subsequent fiscal years through 2028.

Beginning fiscal year ending September 30, 2025, modifies contribution requirements based on actuarial valuation results: if assets exceed retiree health benefit liabilities, employers contribute only normal costs; if assets are insufficient, employers contribute both unfunded liability and normal costs.

For fiscal year ending September 30, 2024 and 2025, reduces pension and retiree health care payroll growth assumption rate for non-university reporting units by 50 basis points annually (with allowance for 25 basis point reduction if unfunded liability impact exceeds 7%).

Requires the Office of Retirement Services and Retirement Board to submit annual reports by April 1 detailing forecasted investment returns at multiple probability levels, mortality assumptions, and other material financial assumptions affecting the retirement system.