SERS PAYMENT DEFERRAL H.B. 4512: COMMITTEE SUMMARY
House Bill 4512 (as passed by the House)
Sponsor: Representative Lee Gonzales
House Committee: Appropriations
Senate Committee: Appropriations
Date Completed: 5-08-07
CONTENT
This bill would make a change to the State Employees' Retirement System for fiscal year 2006-07 only. It would allow for an interest-only payment on the unfunded actuarially accrued liability (UAAL) for FY 2006-07, deferring the payments on the principal for this fiscal year. For FY 2006-07, the UAAL contribution is 4.5% of the UAAL.
MCL 38.38
FISCAL IMPACT
The interest-only payment would create savings of $82.9 million Gross and $44.8 GF/GP.
Fiscal Analyst: Kirk Sanderson
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. 4512/0708