On January 5, 2017, Michigan Governor Rick Snyder signed into law Public Act (PA) 530 of 2016 (HB 6075), which amends Act 314 of 1965, Public Employee Retirement System Investment Act (sections 13 and 20h).
Changes made by HB 6075 include, but are not limited to:
- Requiring the retirement system’s summary annual report to include the actuarial assumed rate of health care inflation;
- Requiring the system’s investment fiduciary to submit its summary annual report to the Department of Treasury not less than 30 days after its publication;
- Requiring the Department of Treasury to post on its website an executive summary of each summary annual report received, including the system’s unfunded actuarial accrued liability (UAAL) for health care and pension; and
- Requiring a system with an actuarial accrued liability for retiree health or pension that is less than 60% funded to post an informational report on the internet outlining the steps (if any) the system may be taking to decrease its unfunded actuarial accrued liability.
Currently, the reporting requirements of Act 314 apply only to “a public employee retirement system created and established by this state or any political subdivision of this state.” Although the amendments enacted under PA 530 commonly reference health care, the legislation does not create a separate reporting obligation applicable to the public employee health care funds established by local units of government within the state. Consequently, the amendments to Act 314 contained within PA 530 are mostly unrelated as they pertain to retiree health care liabilities.
HB 6075 is effective on March 29, 2017 and is available here.