Numbered Letter 2025-03

Effective Date: September 21, 2025

Summary

Public Act 314 of 1965, Section 13(6): “Subject to this subsection and subsection (13), an investment fiduciary may use a portion of the system's income to defray the costs of professional training and education, including travel costs, of system board members, which professional training and education, including travel, are directly related to the administration, management, and operation of the system. The governing board vested with the general administration, management, and operation of the system or other decision-making body that is responsible for implementation and supervision of the system shall adopt an annual budget for professional training and education, including travel, authorized under this subsection. The budget adopted under this subsection must reflect the number of board members, the size of the system, and the educational objectives of the system. The system's total aggregate cost for professional training and education, including travel costs, authorized under this subsection for a fiscal year must not exceed $150,000.00 or an amount that is equal to the total number of system board members multiplied by $12,000.00, whichever is less. The system's total cost for professional training and education, including travel costs, authorized under this subsection for an individual system board member in a fiscal year must not exceed $30,000.00. Beginning January 1, 2013, the department of treasury shall adjust the dollar amounts in this subsection by an amount determined by the state treasurer at the end of the immediately preceding calendar year to reflect the cumulative annual percentage change in the Consumer Price Index. As used in this subsection, "Consumer Price Index" means the most comprehensive index of consumer prices available for this state from the Bureau of Labor Statistics of the United States Department of Labor.”

Public Employee Retirement System Compliance Requirements

To comply with the requirements set forth in section 13(6) of the Act, the governing body of a public employee retirement system shall adopt an annual budget that includes all of the following:

1. Adopt and annual budget for professional training and education, including travel. The adopted budget shall include all of the following:
   1. Number of board members
   2. Size of the retirement system
   3. Educational objective(s) of the retirement system

Michigan Department of Treasury Compliance Requirements

To comply with the requirements set forth in section 13(6) of the Act, the Michigan Department of Treasury (Treasury) shall provide annual updates consistent with this section on or around January 1 of each year on Appendix A of this document and posted on Treasury’s website to reflect the change to the maximum allowable expenditures defined in this section:

1. Total allowable expenditures for the entire retirement system
2. Total per member expenditures for retirement system
3. Total maximum allowable expenditures for any individual retirement system board member

Education and Professional Training Statutory Limits ($)

Initial Statutory Limits ($)

• Total system-wide maximum: $150,000 or number of retirement system board members multiplied by $12,000, whichever is less
• Individual board member cap: $30,000

Appendix A will be updated annually to reflect the updated annual consumer price index increase.

Appendix A – Updated July 15, 2025