This money helps community colleges pay part of their retirement contribution costs for the year.

Law reference:

• Section 201(4)(a) for community colleges.

This money pays for normal cost increases when the assumed rate of return goes down. The money also covers normal cost floor adjustments, which are minimum payment rules required by Michigan law.

Law references:

• Section 147a for K-12 districts, intermediate school districts, charter schools, public school academies, and libraries.
• Section 201(4)(b) for community colleges.
• Section 236(9) for universities.

This money covers the UAAL debt costs above the UAAL rate cap. That limit is 15.21% for non-universities and 25.73% for universities.

This money is passed through reporting units to the Michigan Office of Retirement Services. It appears on employer statements as UAAL Rate Stabilization Invoice.

Law references:

• Section 147c for K-12 districts, intermediate school districts, charter schools, public school academies, and libraries.
• Section 201(5) for community colleges.
• Section 236(4) for universities.

This money helps employers cover higher costs for newer retirement plans. These plans include Pension Plus 2 Plan and the Defined Contribution Plan.

Law reference:

• Section 147e for all reporting units except universities and libraries.