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Protecting MI Pension Grant Program
Protecting MI Pension Grant Program
View the Protecting MI Pension Grant Award Approvals
Protecting MI Pension Grant Program
Click to go to section:
- Program Description
- Grant Qualifications
- Grant Timeline
- Forms and Applications
- Payment Distribution Process
- Reporting Requirements
- Guidance
- Contact Information
Program Description
The Protecting MI Pension Program was created to help Michigan’s underfunded municipal pension systems. Under the Fiscal Year 2022-23 budget, the Michigan Department of Treasury (Treasury) was appropriated $750 million to establish and operate a local unit municipal pension principal payment grant program for qualified retirement systems with a funded ratio below 60%, as defined in the Protecting Local Government Retirement and Benefits Act, Public Act 202 of 2017.
Key to understanding the Protecting MI Pension: Michigan Local Pension Grant Program is the definition of “qualified retirement system”, “qualified unit”, and “contractual benefit enhancement”.
(a) “Qualified retirement system” means a retirement pension benefit within a retirement system, as defined in section 3 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2803, of a qualified unit, with a funded ratio below 60 based on the last report filed as required by section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, as of December 31, 2021.
(b) “Qualified unit” means a city, county, township, village, or road commission that operates a qualified retirement system.
(c) “Contractual benefit enhancement” means any change to the current benefit policy for active members in a qualified retirement system that increases the actuarially determined contribution rate or decreases the funded ratio of the system. This does not include wage and salary increases.
Grant Qualifications
Grant funds will be made to cities, villages, townships, counties, and road commissions with a qualified retirement system with a funded ratio less than 60% based on the last report filed as required by section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, as of December 31, 2021. Local units of government that reported a funded ratio below 60% to Treasury as of December 31, 2021, can be found below.
Grant Timeline
Treasury will implement the Protecting MI Pension Program like other special grant programs were previously administered. Below is an overview and timeline of a phased approach to implementation.
|
Date |
Description |
|
Early-February |
Website Live |
|
Mid/Late February |
Publish Preliminary Qualified Local Government Funded Ratios as of December 31, 2021 |
|
March 31, 2023 |
Local Government Data Discrepancy Response Deadline |
|
April 6, 2023 and TBD |
Pension Grant Webinar |
|
April 15, 2023 |
Program Guidelines Due |
|
April 17th – June 15th |
Submission of Applications |
|
June 15, 2023 |
Application Submission Deadline |
|
June 15th -July 15th |
Application Review Period |
|
TBD |
Pro-ration Calculation If Needed |
|
As early as July 17, 2023 |
Grant Payment Award Notification Period
|
|
August 7, 2023 |
Deadline for Local Government to Submit Grant Award Agreement |
|
August 30, 2023 |
Last Date to Disburse Funds |
|
August 30, 2024 |
Audit of Payments to Retirement Systems
|
Forms and Applications
To file a claim, qualified units must submit the Protecting MI Pension Program Application and Affidavit to Treasury as soon as April 17, 2023, but no later than June 15, 2023. Qualified retirement systems will be notified of grant award amounts in August 2023, with payment disbursements no later than August 30, 2023.
- Protecting MI Pension Grant Application Instructions
- Protecting MI Pension Grant Checklist
- Protecting MI Pension Grant Program Frequently Asked Questions (Updated 5/23/2023)
- Protecting MI Pension Grant Application Process
- Protecting MI Pension Grant Board Resolution Sample
- Protecting MI Pension Grant Award Agreement
Payment Distribution Process
Funds shall be disbursed to qualified retired systems by the Department of Treasury no later than August 30, 2023.
Reporting Requirements
The qualified unit shall be subject to corrective action plan monitoring by the Municipal Stability Board for 5 years following receipt of any grant award.
Monitoring Policies and Procedures
Guidance and Information
The Department of Treasury shall develop, and publish on the department website, program guidelines, an application process, and the associated application materials no later than April 15, 2023. The department of treasury must accept applications from qualified units beginning April 15, 2023, and ending on June 15, 2023.
- Protecting MI Pension Grant Program Announcement February 28, 2023
- Protecting MI Pension Grant Webinar Presentation April 6, 2023
- Protecting MI Pension Grant Webinar Presentation Recording April 6, 2023
Contact Information
For more information about this grant program, visit:
Website: www.michigan.gov/MIPensionGrant