HOUSE BILL No. 6371

 

 

September 25, 2018, Introduced by Rep. Lower and referred to the Committee on Michigan Competitiveness.

 

     A bill to amend 2017 PA 202, entitled

 

"Protecting local government retirement and benefits act,"

 

(MCL 38.2801 to 38.2812) by adding section 4a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4a. Beginning June 1, 2019, if a local unit of government

 

has opted or opts to offer or provide an employee of the local unit

 

of government, or former employee first employed by the local unit

 

of government before June 1, 2019, with a retirement pension

 

benefit, except as provided in this section, beginning with fiscal

 

years that begin after December 31, 2020, the local unit of

 

government shall not use or apply a rolling amortization method, an

 

open amortization method, or other adjustable amortization method

 

for an unfunded actuarial accrued liability of retirement pension

benefits under a retirement system of the local unit of government.

 

An amortization period for an unfunded actuarial accrued liability

 

of retirement pension benefits under a retirement system of the

 

local unit of government must not be extended by the local unit of

 

government after December 31, 2020. The local unit of government

 

may request and the state treasurer may grant 1 extension of the

 

December 31, 2020 deadline under this section to a new deadline no

 

later than December 31, 2025. The state treasurer may approve the

 

extension of an amortization period in effect as of June 1, 2019

 

if, after consultation with, and agreement by, the retirement

 

system fiduciary, the local unit of government requests an

 

extension of the amortization period and the state treasurer

 

determines that the extension is in the best financial interests of

 

the local unit of government.