Section 388.1747c - Payments to participating entities of MPSERS; reduction of payroll growth assumption; definitions(1) From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 an amount not to exceed $955,000,000.00 and from the MPSERS retirement obligation reform reserve fund money appropriated in section 11, there is allocated for 2024-2025 only an amount needed, estimated at $84,100,000.00 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 2024-2025 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. It is the intent of the legislature that money allocated from the MPSERS retirement obligation reform reserve fund under this subsection for 2024-2025 represents the amount necessary to reduce the payroll growth assumption to 0.25%. All of the following apply to funding under this subsection:(a) Except as otherwise provided in this subdivision, for 2024-2025, the amounts allocated under this subsection are estimated to provide an average MPSERS rate cap per pupil amount of $740.00 and are estimated to provide a rate cap per pupil for districts ranging between $2.00 and $2,650.00.(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) In addition to the funds allocated under subsection (1), from the MPSERS retirement obligation reform reserve fund money appropriated in section 11, there is allocated for 2024-2025 only $250,000,000.00 for payments to participating entities of the Michigan public school employees' retirement system. The amount allocated to each participating entity under this subsection must be based on each participating entity's proportion of the total covered payroll for the immediately preceding fiscal year. A participating entity that receives funds under this subsection shall use the funds solely for purposes of this subsection. Each participating entity receiving funds under this subsection shall forward an amount equal to the amount allocated under this subsection to the retirement system in a form, manner, and time frame determined by the retirement system. The retirement system shall recognize funds received under this subsection as additional assets being contributed to the system and shall not categorize them as unfunded actuarial liability contributions or normal cost contributions.(3) As used in this section:(a) "Community college" means a community college created under the community college act of 1966, 1966 PA 331, MCL 389.1 to 389.195.(b) "District library" means a district library established under the district library establishment act, 1989 PA 24, MCL 397.171 to 397.196.(c) "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.(d) "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. As used in subsection (2) only, "participating entity" also means a community college 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.(e) "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.Amended by 2024, Act 120,s 122, eff. 10/1/2024.Amended by 2023, Act 103,s 175, eff. 10/1/2023.Amended by 2023, Act 3,s 9, eff. 2/14/2023.Amended by 2022, Act 144,s 129, eff. 10/1/2022.Amended by 2021, Act 48,s 119, eff. 7/13/2021.Amended by 2020, Act 165,s 95, eff. 10/1/2020.Amended by 2020, Act 146,s 20, eff. 7/31/2020.Amended by 2019, Act 58,s 94, eff. 10/1/2019.Amended by 2018, Act 265,s 88, eff. 10/1/2018.Amended by 2017, Act 108,s 89, eff. 10/1/2017.Amended by 2016, Act 249,s 85, eff. 10/1/2016.Amended by 2015, Act 85,s 77, eff. 10/1/2015.Amended by 2015, Act 5,s 8, eff. 3/10/2015.Amended by 2014, Act 196,s 74, eff. 10/1/2014.Amended by 2014, Act 116,s 17, eff. 4/11/2014.Amended by 2013, Act 60,s 65, eff. 6/13/2013.Added by 2012, Act 201,s 63, eff. 10/1/2012.