Skip to main content

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

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.

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.

Contact Information

For more information about this grant program, visit:

Website:             www.michigan.gov/MIPensionGrant

Email:                  Treasury-MIPensionGrant@michigan.gov