Bill Text: MI HB4968 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Retirement: pension oversight; creation of the retirement system auditor within the legislative council; provide for. Creates new act.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-06-09 - Bill Electronically Reproduced 06/08/2021 [HB4968 Detail]
Download: Michigan-2021-HB4968-Introduced.html
HOUSE BILL NO. 4968
the people of the state of michigan enact:
(a) "Auditor" means the retirement system auditor.
(b) "Council" means the legislative council established under section 15 of article IV of the state constitution of 1963.
(c) "Office" means the office of the retirement system auditor created under this act.
(d) "Retirement system" means a state unit as that term is defined in section 13 of the public employee retirement system investment act, 1965 PA 314, MCL 38.1133.
Sec. 3. (1) The office of the retirement system auditor is created within the council.
(2) The principal executive officer of the office is the retirement system auditor, who must be appointed by and serve at the pleasure of the council.
Sec. 5. (1) The council shall establish procedures for approving the budget of the office, for expending funds of the office, and for the employment of personnel for the office.
(2) Subject to approval of the council, the auditor may hire an outside actuary. An actuary hired under this subsection shall not serve as, employ, or contract with any actuary that is serving as an actuary for this state.
Sec. 7. On request, the office of retirement services within the department of technology, management, and budget shall provide the auditor with access to all books, records, documents, and accounts of each retirement system and each participating employer.
Sec. 9. The auditor may continuously evaluate any aspect of a retirement system to determine the retirement system's actuarial soundness.
Sec. 11. The auditor shall do all of the following:
(a) For each retirement system, annually review, calculate, and certify the annual required employer contributions as described in section 20m of the public employee retirement system investment act, 1965 PA 314, MCL 38.1140m.
(b) Conduct performance audits, program evaluations, and other studies needed to enable the legislature to evaluate the efficiency, effectiveness, and operation of each retirement system.
(c) Annually prepare a projected annual required employer contribution analysis for each retirement system for the next 30 years. The analysis under this subdivision must address unfunded actuarial accrued liability and normal costs for pension and retiree health care.
(d) Provide to the legislature actuarial notes on proposed legislation that relates to each retirement system.
Sec. 13. (1) By January 1, 2022 and each January 1 after that date, the auditor shall prepare and present to the legislature a report of the auditor's findings under sections 9 and 11. The auditor shall post the report under this subsection on the council's website.
(2) By January 1, 2023 and every 5 years after that date, the auditor shall include in the report required under subsection (1) a comparative summary of each retirement system's reported actuarial assumptions and funding ratio. The report required under this subsection must include both of the following:
(a) The auditor's determination as to the appropriateness of each retirement system's reported actuarial assumptions.
(b) The auditor's recommendations.
