On January 24, 2018 Form 5572 - Public Act 202 of 2017 Pension Report was filed with the Michigan Department of Treasury. The City was notified by Treasury in a letter dated March 1, 2018 that pursuant to Public Act 202 of 2017 the City's MERS retirement system (non-police and fire employees) triggered a preliminary review of underfunded status. The attached Application for Waiver and Plan is in response to this letter from Treasury. One of the requirements of the application is that it be approved by the governing body prior to submission to Treasury.
This waiver and plan point out the flaw in the Treasury calculation of underfunded status, and reflect a revised Form 5572 to include enterprise fund revenues. This revised form shows that properly including those revenues results in none of the City's plans falling into the Treasury's definition of underfunded. It also demonstrates prior actions that the City has implemented to address the funding level of the MERS plan.
|