Michigan Compiled Laws
Article I - State Aid to Public Schools, Early Childhood, and Adult Education (388.1601...388.1772)
Section 388.1747c - Payments to Participating Entities of Mpsers; Reduction of Payroll Growth Assumption; Definitions.

Sec. 147c.
(1) From the state school aid fund money appropriated in section 11, there is allocated for 2022-2023 an amount not to exceed $1,478,000,000.00, and from the MPSERS retirement obligation reform reserve fund money appropriated in section 11, there is allocated for 2022-2023 only an amount needed, estimated at $140,400,000.00, for payments to districts and intermediate districts that are participating entities of the Michigan public school employees' retirement system. In addition, from the general fund money appropriated in section 11, there is allocated for 2022-2023 an amount not to exceed $500,000.00 for payments to district libraries that are participating entities of the Michigan public school employees' retirement system. It is the intent of the legislature that money allocated from the MPSERS retirement obligation reform reserve fund under this section for 2022-2023 represents the amount necessary to reduce the payroll growth assumption to 1.75%. All of the following apply to funding under this section:
(a) Except as otherwise provided in this subdivision, for 2022-2023, the amounts allocated under this section are estimated to provide an average MPSERS rate cap per pupil amount of $1,042.00 and are estimated to provide a rate cap per pupil for districts ranging between $5.00 and $3,700.00. For 2022-2023, if the retirement system determines the average MPSERS rate cap per pupil amount and rate cap per pupil for districts estimated in the immediately preceding sentence need to be adjusted, the estimated average MPSERS rate cap per pupil amount and estimated rate cap per pupil for districts under this subdivision are the estimations determined by the retirement system. If the retirement system makes a determination as described in the immediately preceding sentence, it shall issue its estimations publicly and describe the need for the adjustment described in the immediately preceding sentence.
(b) Payments made under this section are equal to the difference between the unfunded actuarial accrued liability contribution rate as calculated pursuant to section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, as calculated without taking into account the maximum employer rate of 20.96% included in section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the maximum employer rate of 20.96% included in section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341.
(c) The amount allocated to each participating entity under this section is based on each participating entity's proportion of the total covered payroll for the immediately preceding fiscal year for the same type of participating entities. A participating entity that receives funds under this section shall use the funds solely for the purpose of retirement contributions as specified in subdivision (d).
(d) Each participating entity receiving funds under this section shall forward an amount equal to the amount allocated under subdivision (c) to the retirement system in a form, manner, and time frame determined by the retirement system.
(e) Funds allocated under this section should be considered when comparing a district's growth in total state aid funding from 1 fiscal year to the next.
(f) Not later than December 20 of each fiscal year for which funding is allocated under this section, the department shall publish and post on its website an estimated MPSERS rate cap per pupil for each district.
(g) The office of retirement services shall first apply funds allocated under this section to pension contributions and, if any funds remain after that payment, shall apply those remaining funds to other postemployment benefit contributions.
(2) In addition to the funds allocated under subsection (1), from the state school aid fund money appropriated in section 11, there is allocated for 2022-2023 only $1,000,000,000.00 for payments to districts and intermediate districts that are participating entities of the Michigan public school employees' retirement system. The amount allocated to each participating entity under this subsection must be based on each participating entity's proportion of the total covered payroll for the immediately preceding fiscal year. A participating entity that receives funds under this subsection shall use the funds solely for purposes of this subsection. Each participating entity receiving funds under this subsection shall forward an amount equal to the amount allocated under this subsection to the retirement system in a form, manner, and time frame determined by the retirement system. The retirement system shall recognize funds received under this subsection as additional assets being contributed to the system and shall not categorize them as unfunded actuarial liability contributions or normal cost contributions.
(3) As used in this section:
(a) "District library" means a district library established under the district library establishment act, 1989 PA 24, MCL 397.171 to 397.196.
(b) "MPSERS rate cap per pupil" means an amount equal to the quotient of the district's payment under this section divided by the district's pupils in membership.
(c) "Participating entity" means a district, intermediate district, or district library that is a reporting unit of the Michigan public school employees' retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees' retirement system for the applicable fiscal year.
(d) "Retirement system" means the Michigan public school employees' retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.
History: Add. 2012, Act 201, Eff. Oct. 1, 2012 ;-- Am. 2013, Act 60, Imd. Eff. June 13, 2013 ;-- Am. 2014, Act 116, Imd. Eff. Apr. 11, 2014 ;-- Am. 2014, Act 196, Eff. Oct. 1, 2014 ;-- Am. 2015, Act 5, Imd. Eff. Mar. 10, 2015 ;-- Am. 2015, Act 85, Eff. Oct. 1, 2015 ;-- Am. 2016, Act 249, Eff. Oct. 1, 2016 ;-- Am. 2017, Act 108, Eff. Oct. 1, 2017 ;-- Am. 2018, Act 265, Eff. Oct. 1, 2018 ;-- Am. 2019, Act 58, Eff. Oct. 1, 2019 ;-- Am. 2020, Act 146, Imd. Eff. July 31, 2020 ;-- Am. 2020, Act 165, Eff. Oct. 1, 2020 ;-- Am. 2021, Act 48, Eff. Oct. 1, 2021 ;-- Am. 2022, Act 144, Eff. Oct. 1, 2022

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