Bill Text: MI HB4123 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Local government; audits; pension board subject to audit by municipalities; require. Amends sec. 20h of 1965 PA 314 (MCL 38.1140h).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-01-25 - Printed Bill Filed 01/21/2011 [HB4123 Detail]

Download: Michigan-2011-HB4123-Introduced.html

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HOUSE BILL No. 4123

 

January 20, 2011, Introduced by Rep. Geiss and referred to the Committee on Oversight, Reform, and Ethics.

 

     A bill to amend 1965 PA 314, entitled

 

"Public employee retirement system investment act,"

 

by amending section 20h (MCL 38.1140h), as amended by 2002 PA 728.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 20h. (1) In addition to the provisions of this act, a

 

system is subject to the applicable accounting and reporting

 

requirements contained in the following acts and parts of acts:

 

     (a) 1919 PA 71, MCL 21.41 to 21.55.

 

     (b) The uniform budgeting and accounting act, 1968 PA 2, MCL

 

141.121 to 141.440a.

 

     (c) Section 91 of the executive organization act of 1965, 1965

 

PA 380, MCL 16.191.

 

     (2) A system shall retain financial records, including, but

 

not limited to, travel records, for a minimum period of 6 years

 

from the creation, or longer if required under other state law or

 

federal law.

 

     (3) Upon a majority vote of the governing body of the

 

political subdivision sponsoring a system, the system shall provide

 

the designated representative of the political subdivision with the

 

reasonable opportunity to inspect, copy, or receive copies of all

 

information regarding the calculation of actual or estimated

 

retirement benefits for members of the system notwithstanding

 

anything that may be to the contrary in section 13 of the freedom

 

of information act, 1976 PA 442, MCL 15.243.

 

     (4) The system may require that records provided under

 

subsection (3) are provided only upon a promise of confidentiality

 

and the records provided under subsection (3) are exempt from

 

disclosure by the recipient political subdivision under section

 

13(1)(d) of the freedom of information act, 1976 PA 442, MCL

 

15.243. A system may make reasonable rules that ensure the

 

confidentiality of records exempt from disclosure under applicable

 

federal or state law. The system may charge a fee under this

 

subsection in accordance with section 4 of the freedom of

 

information act, 1976 PA 442, MCL 15.234. Expenses incurred by the

 

sponsoring political subdivision that are related to its request

 

under subsection (3) shall be borne by the political subdivision

 

and shall not be deducted or offset against the political

 

subdivision's required pension contributions to the system.

 

     (5) (2) Except as otherwise provided in subsection (4) (7), a

 

system shall have an annual actuarial valuation with assets valued

 

on a market-related basis. A system shall prepare and issue a

 

summary annual report. The system shall make the summary annual

 

report available to the plan participants and beneficiaries and the

 

citizens of the political subdivision sponsoring the system. If the

 

system has a website, the summary annual report shall be published

 

on the website and made available to the public. If the system does

 

not have a website, the sponsoring political subdivision shall

 

publish the summary annual report on a website that the sponsoring

 

political subdivision has created or may create. The summary annual

 

report shall include all of the following information:

 

     (a) The name of the system.

 

     (b) The names of the system's investment fiduciaries,

 

actuaries, and auditors.

 

     (c) The system's assets and liabilities and changes in net

 

plan assets.

 

     (d) The system's funded ratio.

 

     (e) The system's investment performance over 1, 3, 5, and 10

 

years.

 

     (f) The system's investment and administrative expenses in

 

accordance with the standards of the governmental accounting

 

standards board, including, but not limited to, educational and

 

travel expenses.

 

     (6) (3) A system shall provide a supplemental actuarial

 

analysis before adoption of pension benefit changes. Actuarial

 

expenses related to the supplemental actuarial analysis shall not

 

be borne by the system. The supplemental actuarial analysis shall

 

be provided by the system's actuary and shall include an analysis

 

of the long-term costs associated with any proposed pension benefit

 

change. The supplemental actuarial analysis shall be provided to

 

the board of the particular system and to the decision-making body

 

that will approve the proposed pension benefit change at least 7

 

days before the proposed pension benefit change is adopted. For

 

purposes of this subsection, "proposed pension benefit change"

 

means a proposal to change the amount of pension benefits received

 

by persons entitled to pension benefits under a system. Proposed

 

pension benefit change does not include a proposed change to a

 

health care plan or health benefits.

 

     (7) (4) A system that has assets of less than $20,000,000.00

 

is only required to have the actuarial valuation required under

 

subsection (2) (5) done every other year.