388.1747c Payments to participating entities of MPSERS; reduction of payroll growth assumption; definitions.

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Sec. 147c.

(1)From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026 an amount not to exceed $1,536,500,000.00 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 2025-2026 an amount not to exceed $300,000.00 for payments to district libraries that are participating entities of the Michigan public school employees' retirement system. All of the following apply to funding under this subsection:

(a)Except as otherwise provided in this subdivision, for 2025-2026, the amounts allocated under this subsection are estimated to provide an average MPSERS rate cap per pupil amount for districts of $1,100.00, which represents an average increase of $362.00 per pupil compared to the immediately preceding state fiscal year.

(b)Payments made under this subsection are equal to the difference between the unfunded actuarial accrued liability contribution rate as calculated under 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 subsection 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 subsection shall use the funds solely for the purpose of retirement contributions as specified in subdivision (d).

(d)Each participating entity receiving funds under this subsection 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 subsection should be considered when comparing a district's growth in total state aid funding from 1 fiscal year to the next.

(f)By not later than December 20 of each fiscal year for which funding is allocated under this subsection, the department shall publish and post on its website an estimated MPSERS rate cap per pupil for each district.

(2)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, except as otherwise provided in this subdivision, 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 ;-- Am. 2023, Act 3 , Imd. Eff. Feb. 14, 2023 ;-- Am. 2023, Act 103 , Eff. Oct. 1, 2023 ;-- Am. 2024, Act 120 , Eff. Oct. 1, 2024 ;-- Am. 2025, Act 15 , Imd. Eff. Oct. 7, 2025