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MI Local Retirement Grant Program

Preliminary List of Qualified Units

MI Local Retirement Grant Program

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Program Description

The MI Local Retirement Grant program was created to help provide relief to the local units of government with the most significant burden from qualified pension and retirement health benefit systems on their annual budget and revenues. Under the Fiscal Year 2023-24 budget, the Michigan Department of Treasury (Treasury) was appropriated $35 million to establish and operate a grant program that provides the most substantial relief to local units of government that experience the greatest burden from qualified pension and retirement health benefit systems on their annual budget and revenues.

Key to understanding the MI Local Retirement Grant program is the definition of pension and retirement health benefit systems annual budget and revenues pension actuarially determined and health care benefit.

(a) "Qualified Unit" means a city, county, township, or village that operate retirement systems that offer both retirement pension benefits and retirement health benefits, as defined in section 3 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2803 for the local unit of government most recent fiscal year ending on or before December 31, 2021.

(b)"Pension and Retirement Health Benefit Systems" means the sum of pension actuarially determined contributions and retirement health care benefit premium amount(s) greater than twenty-two percent of general fund operating revenues, reported in accordance with 2017 PA 202, MCL 38.2804 and MCL 38.2805 of the qualified local units most recent fiscal year ending on or before December 31, 2021.

(c) “Annual Budget and Revenues” means the general fund operating revenues for the qualified unit, as defined in section 3 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2803.

(d) “Pension Actuarially Determined Contribution” means the annual required contribution as defined in in 2017 PA 202, MCL 38.03, defined as the sum of the normal cost payment and the annual amortization payment for past service costs to fund the unfunded actuarial accrued liability,

(e) “Retirement Health Care Benefit Premium” means premiums for insurance covering medical, drugs, dental, hearing, or vision care as reported in 2017 PA 202, MCL 38.2804.

Grant Eligibility

Grant payments will be awarded to qualified units with qualified retirement pension and retirement health benefit systems costs greater than twenty-two percent of their general fund operating revenues.

Eligibility for the MI Local Retirement Grant will be awarded to qualified units that experience the greatest retirement burden. Grant awards will be calculated using the sum of the qualified pension system(s) actuarially determined contributions (ADC) and retirement health care system benefit premium payment amounts, as reported to Treasury as of December 31, 2021, pursuant to Public Act 202 of 2017, MCL 38.2804 and MCL 38.2505.

Grant Timeline

Treasury will implement the MI Local Retirement Grant in a similar manner as prior grants administered by the department. Below is an overview and timeline of a phased approach to implementation.

Date

Description

June 1, 2024

Website Live

June 1, 2024

Publish Preliminary Qualifying Local Government Data as of December 31, 2021

June 1, 2024

Notify Preliminary Qualified Local Units

June 1, 2024

Program Guidelines Due

June 20, 2024

Local Government Data Discrepancy Response Deadline

June 20– July 20, 2024

Submission of Claim for Grant Award

July 20, 2024

Claim Submission Deadline

July 20- August 5, 2024

Claim Review Period

August 15, 2024

Grant Payment Award Notification Period Begins

August 31, 2024

Disburse Funds

August 31, 2025

Audit of Payments to Retirement Systems

Forms

To file a claim, qualified units with qualified pension and retirement health benefit systems must submit the MI Local Retirement Grant Claim Form to Treasury as soon as June 20, 2024. Qualified units will be notified of grant award amounts in August 2024, with payment disbursements August 31, 2024.

Payment Distribution Process

Funds shall be disbursed to Pension and Retirement Health Benefit Systems by the Department of Treasury August 31, 2024.

Guidance and Information

The Department of Treasury shall develop, and publish on the department website, program guidelines, a claim submission process, and the associated form materials by June 1, 2024. The department of treasury will accept claim forms from qualified units beginning June 20, 2024, and ending on July 20, 2024.

Contact Information

For more information about this grant program, visit

Email: Treasury-MIPensionGrant@michigan.gov