Source of Data

Where can the Retirement System Annual Report (Form 5572) data be found?

The data used in determining underfunded status for this report is primarily found in the most recent audited financial statement or funding valuation. The data used in reporting uniform assumptions, as well as most additional summary reporting data, can primarily be found in the most recent actuarial funding valuation. The Form 5572 specifies the correct data source.

Where do I find my assets and liabilities for purposes of determining underfunded status?

Your assets and liabilities should come from your most recent audited financial statement.

• Assets and liabilities can be found in the notes section or the required supplementary information (RSI) of the audited financial statement;
• For updated accounting terminology please view Treasury’s instructions by visiting our website, Michigan.gov/LocalRetirementReporting, selecting the “Forms and Instructions” button and fiscal year for which you are looking to file, and then select instructions.

Where do I find my actuarial determined contribution (ADC) for purposes of determining underfunded status?

The ADC amount is primarily listed in the required supplementary information (RSI) of the audited financial statements.

Where do I find my annual governmental fund revenues for purposes of determining underfunded status?

The annual governmental fund revenue amount is primarily listed in the financial statements section of the audited financial statement under “Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds.”

This should include revenues from the general, special revenue, capital projects, debt service, and permanent funds. Revenues must be reported on the modified accrual basis from the fund-based statements and not the government-wide based statements. All other financing sources including, but not limited to, interfund transfers, bond proceeds, and sale of capital assets, must not be included in the calculation of revenues.

• Special purpose governments, business-type non-primary local governments, and discretely presented component governments must include all operating, non-operating, and capital contributions in the calculation of revenues regardless of fund type;
• For local governments with multiple retirement systems, enter the same governmental fund revenue amount in each column.

Where do I find the required summary reporting information?

Beginning in fiscal year 2019, Treasury has streamlined the retirement system reporting by merging the Retirement System Annual Report (Form 5572) with the summary pension report, which was required under Public Act 530 of 2016 (PA 530). This eliminates the PA 530 report that was previously required. Fundamental data for summary retiree health care reporting is now also requested in the Form 5572 as required by the Act. The majority of the additional reporting requirements can be found in your local government’s most recent actuarial funding valuation; however, you should check with your auditor and/or actuary for further guidance.

When is the required summary reporting information due?

All data requested on the Form 5572, including all required summary reporting data, is due six months after the local government's fiscal year end.

My FY 2019 audited financial statements have been submitted utilizing an actuarial valuation dated 12/31/2018, but for the summary reporting data fields required on the Form 5572, it states to use my “Most Recent Actuarial Funding Valuation”. My 12/31/2019 valuation won’t be received until after my submission due date. Should I report the summary reporting numbers from my 12/31/2018 valuation, or wait to submit the form until after my 12/31/2019 valuation is received?

Treasury recommends that local governments submit the Form 5572 at the same time that the audited financial statements are due. Required fields on the Form 5572 should be completed using the most recent audited financial statements and the actuarial funding valuation(s) utilized in the most recent audited financial statements. It is not necessary to delay the submission of the Form 5572 until a more rece­­­nt valuation has been received.

When are uniform assumptions required to be reported?

As general guidance, actuarial valuations issued after December 31, 2018 should include the data required for Treasury’s uniform assumption reporting. Therefore, if your audited financial statements utilize a valuation issued after December 31, 2018, uniform assumptions must be reported. Uniform assumptions must be reported on your Form 5572 no later than fiscal year 2020. Please review the implementation section within Treasury’s “Selection of the Uniform Assumptions” memo for further guidance on how and when to report data using uniform assumptions.

Where do I find uniform assumption reporting information?

As general guidance, assets, liabilities, and actuarially determined contributions calculated using uniform assumptions can be found in your most recent actuarial funding valuation. Unless local governments are using the uniform assumptions for financial reporting purposes, they will be required to report two sets of funded ratios and actuarially determined contributions within their Retirement System Annual Report (Form 5572). This is required six months after the local government’s fiscal year end. Treasury has updated the fiscal year 2019 Form 5572 to receive this information. Further questions regarding the location of these numbers should be directed to your actuarial or auditing professional.

We have several divisions in our MERS pension, or similarly, I receive one summary document from MERS showing the status of several departments (such as General, Police, DPW, Admin, Police Chief, New F/T Employees, etc.) Should I be listing each division or department separately on the Retirement System Annual Report (Form 5572) or combine them under one system? 

You should report the data on the Form 5572 as it is reported in your audited financial statements. Often, if you have several divisions or departments, your retirement divisions/departments (e.g. General, Police, DPW, Admin, etc.) are combined into one report of your MERS system in your audited financial statements. The number of systems in Form 5572 should match the number of reports your local government has in your audited financial statements, not including any discretely presented component government plans.

Our pension plan includes employees in our water and sewer department. Their pension cost is allocated to the water and sewer fund, an enterprise fund. When I report governmental fund revenue, should I include any revenue received by the water and sewer fund?

No. Section 3(g) of the Act states proprietary, fiduciary, enterprise, or other restricted funds may not be used in general fund operating revenues.