Bill Text: MI HB4534 | 2019-2020 | 100th 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 2-0)
Status: (Introduced - Dead) 2019-05-01 - Bill Electronically Reproduced 05/01/2019 [HB4534 Detail]
Download: Michigan-2019-HB4534-Introduced.html
HOUSE BILL No. 4534
April 30, 2019, Introduced by Reps. Lower and Albert and referred to the Committee on Appropriations.
A bill to create the office of the retirement system auditor
within the legislative council and to prescribe its powers and
duties; and to prescribe the powers and duties of certain state
officers and entities.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(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, 2020 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, 2021 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.
