Section 388.1747a - Payments to participating districts of the Michigan public school employees' retirement system; use; purpose; "participating district" defined; payments to participating districts and district libraries; definitions; payments to participating intermediate districts and district libraries(1) From the state school aid fund money appropriated in section 11, there is allocated for 2023-2024 an amount not to exceed $100,000,000.00 and for 2024-2025 an amount not to exceed $100,000,000.00 for payments to participating districts. A participating district that receives money under this subsection shall use that money solely for the purpose of offsetting a portion of the retirement contributions owed by the district for the fiscal year in which it is received. The amount allocated to each participating district under this subsection is based on each participating district's percentage of the total statewide payroll for all participating districts for the immediately preceding fiscal year. As used in this subsection, "participating district" means a district 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.(2) In addition to the allocation under subsection (1), from the state school aid fund money appropriated under section 11, there is allocated an amount not to exceed $384,642,000.00 for 2023-2024 and an amount not to exceed $365,100,000.00 for 2024-2025, and from the MPSERS retirement obligation reform reserve fund money appropriated in section 11, there is allocated an amount not to exceed $24,850,000.00 for 2023-2024 only, for payments to participating districts and intermediate districts and from the general fund money appropriated under section 11, there is allocated an amount not to exceed $108,000.00 for 2023-2024 and an amount not to exceed $100,000.00 for 2024-2025 for payments to participating district libraries. The amount allocated to each participating entity under this subsection is based on each participating entity's reported quarterly payroll for members that became tier 1 before February 1, 2018 for the current fiscal year. A participating entity that receives money under this subsection shall use that money solely for the purpose of offsetting a portion of the normal cost contribution rate. As used in this subsection:(a) "District library" means a district library established under the district library establishment act, 1989 PA 24, MCL 397.171 to 397.196.(b) "Participating entity" means 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.(3) In addition to the allocations under subsections (1) and (2), from the state school aid fund money appropriated in section 11, there is allocated for 2023-2024 and 2024-2025 only an amount not to exceed $11,939,000.00 for payments to participating intermediate districts and participating district libraries. A participating intermediate district or participating district library shall use that money solely for the purpose of offsetting a portion of the retirement contributions owed by the participating intermediate district or participating district library for the fiscal year in which it is received. The amount allocated to each participating intermediate district or participating district library under this subsection is calculated as follows: (a) For each participating intermediate district, $11,912,000.00 multiplied by each participating intermediate district's percentage of the total statewide payroll for all participating intermediate districts for the immediately preceding fiscal year.(b) For each participating district library, $27,000.00 multiplied by each participating district library's percentage of the total statewide payroll for all participating district libraries for the immediately preceding fiscal year.(c) As used in this subsection:(i) "Participating district library" means a 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.(ii) "Participating intermediate district" means an intermediate district 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.(4) In addition to the allocations under subsections (1), (2), and (3), from the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 an amount not to exceed $598,000,000.00 for payments to participating entities. The amount allocated to each participating entity under this subsection is based on each participating entity's percentage of the total statewide payroll for all participating entities for the immediately preceding fiscal year. The amount allocated in this subsection represents an amount to effectively reduce each participating entity's unfunded actuarial accrued liability from 20.96% to an estimated 15.21% of covered payroll. It is the intent of the legislature that the allocation under this subsection be used to support student mental health, school safety, the educator workforce, and academic interventions.(a) As used in this subsection:(i) "District library" means a district library established under the district library establishment act, 1989 PA 24, MCL 397.171 to 397.196.(ii) "Participating entity" means a district, intermediate district, district library, or 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.Amended by 2024, Act 120,s 121, eff. 7/23/2024.Amended by 2023, Act 320,s 26, eff. 2/13/2024.Amended by 2023, Act 103,s 173, eff. 7/21/2023.Amended by 2022, Act 144,s 127, eff. 7/14/2022.Amended by 2021, Act 48,s 117, eff. 7/13/2021.Amended by 2020, Act 165,s 94, eff. 10/1/2020.Amended by 2019, Act 58,s 93, eff. 10/1/2019.Amended by 2018, Act 265,s 86, eff. 10/1/2018.Amended by 2017, Act 143,s 22, eff. 11/2/2017.Amended by 2017, Act 108,s 87, eff. 10/1/2017.Amended by 2016, Act 249,s 84, eff. 10/1/2016.Amended by 2015, Act 85,s 76, eff. 10/1/2015.Amended by 2014, Act 196,s 73, eff. 10/1/2014.Amended by 2013, Act 130,s 10, eff. 10/9/2013.Amended by 2013, Act 60,s 63, eff. 10/1/2013.Amended by 2012, Act 201,s 61, eff. 10/1/2012.Added by 2011, Act 62,s 51, eff. 10/1/2011.