PA 202 of 2017 Updated Best Practices
Municipal Stability Board Releases Updated Best Practices and Strategies to Help Local Units with Underfunded Retirement Benefits
The following notices are regarding Public Act 202 of 2017, the Protecting Local Government Retirement and Benefits Act. If you do not offer a defined benefit pension or retirement health care system, no action is required, and you may disregard.
PA 202 Corrective Action Plan Best Practices
Section 8 of Public Act 202 of 2017 requires the Municipal Stability Board (the Board) to review and annually update a list of best practices and strategies that will assist underfunded local units of government in developing their corrective action plans. At their meeting on June 13th, the Board approved an updated best practices and strategies document, which can be viewed here: Michigan.gov/MSB, under the "Documents" section, titled "PUBLIC COMMENT - Draft 2019 Best Practices and Strategies". The Board is accepting public comment on this document until close of business on Monday July 8th. Following the public comment period, the Board will reconsider the document at their next scheduled meeting. Please send your comments to Treas-MunicipalStabilityBoard@michigan.gov with the subject line “Best Practices Comment: 2019”.
The best practices and strategies document includes the following three best practice principles: Plan Funding, Modern Plan Design, and Effective Plan Administration. It also includes detailed corrective action plan approval criteria, including underfunded status, legality, and affordability.
PA 202 Annual Report Reminder
As a reminder, the retirement system annual report (Form 5572) is due 6-months after your local government's fiscal year end. This deadline coincides with the due date for your annual audit report, and Annual Local Unit Fiscal Report (F65 Report).
Michigan Department of Treasury
Local Retirement Reporting Team
For more information about Treasury’s local government programs, follow @MITreasLocalGov on Twitter.