The Corrective Action Plan Development: Best Practices and Strategies document was developed to provide best practice options to Michigan’s local units of government so they may sustain fiscally stable retirement systems, protect benefits for retirees, and provide high-quality public services to residents. Underfunded local units are encouraged to utilize this information to assist in developing a Corrective Action Plan (CAP) in compliance with Sec. 8 (MCL 38.2808) of Public Act 202 of 2017 (the Act). Each local unit and their governing body will have to agree on a uniquely constructed plan to address their underfunded status for retirement pension and/or retirement health systems.
Additionally in this document, to further assist local units in developing their CAP, the Municipal Stability Board (the Board) has created the approval criteria listed below, which the Board will be considering in their review of each CAP. Local units are encouraged to use a balanced approach from one or more of the best practice principles outlined above to address their underfunded status. However, it is ultimately the responsibility of the local unit to determine the components of their CAP. At a minimum, a successful CAP will demonstrate the following:
Corrective Action Plan Development: Best Practices and Strategies
