Michigan Laws 38.2806 – Underfunded status; waiver; duties of state treasurer if local unit of government not granted waiver
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 38.2806
- Local unit of government: means any of the following:
(i) A city. See Michigan Laws 38.2803Retirement system: means a retirement system, trust, plan, or reserve fund that a local unit of government establishes, maintains, or participates in and that, by its express terms or as a result of surrounding circumstances, provides retirement pension benefits or retirement health benefits, or both. See Michigan Laws 38.2803 state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o Underfunded local unit of government: means a local unit of government that is in underfunded status. See Michigan Laws 38.2803 Underfunded status: means that the state treasurer has determined that the local unit of government is underfunded under the review provided in section 5 and the local unit of government does not have a waiver under section 6. See Michigan Laws 38.2803
(1) To apply for a waiver of the underfunded status determination under section 5, the local unit of government‘s administrative officer and governing body must approve a plan demonstrating the underfunded status is being addressed and must approve the waiver application. The state treasurer shall issue a waiver of the determination of underfunded status for a local unit of government if the state treasurer determines that the underfunded status is adequately being addressed by the local unit of government.
(2) For any underfunded local unit of government that is not granted a waiver, the department of treasury shall do all of the following:
(a) Undertake an individualized and comprehensive internal review of the local unit of government’s retirement system.
(b) Discuss changes or reforms that have been made with the local unit of government’s designated officials.
(c) Review actuarial projections, including trends and forecasts.