One in five Michigan municipalities has underfunded retiree plans
Michigan says more than one-fifth of local governments have an underfunded pension plan, retirement health care plan or both.
The Treasury Department on Monday issued the results of an initial round of reporting required under the Protecting Local Government Retirement and Benefits Act.
More than 110 out of 490 locals units of government that responded will now undergo further review. The tally is expected to grow once local governments with fiscal years ending later report in coming months.
Plans identified as underfunded can get a waiver if they are addressing the underfunding. Otherwise, they will need to submit corrective action plans to a new board appointed by Gov. Rick Snyder. The first board meeting will be in May.
Deputy Treasurer Eric Scorsone says Michigan is collaborating with communities to “help ensure the benefits promised by communities are delivered to their retirees, and help ensure that the fiscal health of communities allows them to be vibrant now and into the future.”