November 10, 2016, Introduced by Senator PAVLOV and referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending section 147 (MCL 388.1747), as amended by 2016 PA 249.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 147. (1) The allocation for 2016-2017 for the public
school employees' retirement system pursuant to the public school
employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to
38.1408, shall be made using the individual projected benefit entry
age normal cost method of valuation and risk assumptions adopted by
the public school employees retirement board and the department of
technology, management, and budget.
(2) The annual level percentage of payroll contribution rates
for the 2016-2017 fiscal year, as determined by the retirement
system, are estimated as follows:
(a) For public school employees who first worked for a public
school reporting unit before July 1, 2010 and who are enrolled in
the health premium subsidy, the annual level percentage of payroll
contribution rate is estimated at 36.64%, with 24.94% paid directly
by the employer.
(b) For public school employees who first worked for a public
school reporting unit on or after July 1, 2010 and who are enrolled
in the health premium subsidy, the annual level percentage of
payroll contribution rate is estimated at 36.01%, with 24.31% paid
directly by the employer.
(c) For public school employees who first worked for a public
school reporting unit on or after July 1, 2010 and who participate
in the personal healthcare fund, the annual level percentage of
payroll contribution rate is estimated at 35.79%, with 24.09% paid
directly by the employer.
(d) For public school employees who first worked for a public
school reporting unit on or after September 4, 2012, who elect
defined contribution, and who participate in the personal
healthcare fund, the annual level percentage of payroll
contribution rate is estimated at 32.66%, with 20.96% paid directly
by the employer.
(e) For public school employees who first worked for a public
school reporting unit before July 1, 2010, who elect defined
contribution, and who are enrolled in the health premium subsidy,
the annual level percentage of payroll contribution rate is
estimated at 32.88%, with 21.18% paid directly by the employer.
(f) For public school employees who first worked for a public
school reporting unit before July 1, 2010, who elect defined
contribution, and who participate in the personal healthcare fund,
the annual level percentage of payroll contribution rate is
estimated at 32.66%, with 20.96% paid directly by the employer.
(g) For public school employees who first worked for a public
school reporting unit before July 1, 2010 and who participate in
the personal healthcare fund, the annual level percentage of
payroll contribution rate is estimated at 36.42%, with 24.72% paid
directly by the employer.
(3) In addition to the employer payments described in
subsection (2), the employer shall pay the applicable contributions
to the Tier 2 plan, as determined by the public school employees
retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408.
(4)
The contribution rates in subsection (2) reflect an the
amortization
period of 22 years for 2016-2017. determined under
section 41 of the public school employees retirement act of 1979,
1980 PA 300, MCL 38.1341. The public school employees' retirement
system board shall notify each district and intermediate district
by February 28 of each fiscal year of the estimated contribution
rate for the next fiscal year.