Late this afternoon, State Treasurer Nick Khouri released the following information on uniform assumptions for communities that have defined benefit pension or OPEB (retiree health care) liabilities to comply with the reporting requirements of PA 202 of 2017. These finalized uniform assumptions have been modified following feedback from the Municipal League and other relevant organizations. The League submitted a joint response with the Michigan Townships Association and the Michigan Association of Counties to the original draft assumptions prepared by the Treasurer earlier this month. The assumptions released today make some of the changes suggested by MML/MTA/MAC, but leave a number of the concerns we raised unresolved. The League will continue to work with member communities and Treasury to highlight concerns with the new law and its implementation.
The email released today from Treasury follows with a link to the letter/assumptions at the end:
If you do not offer a defined benefit retirement pension system or retirement health care system, no action is required, and you may disregard this notice.
Public Act 202 of 2017 (the Act) Uniform Assumptions:
As required by the Act, the state treasurer has established uniform actuarial assumptions of retirement systems that will be utilized for future reporting purposes. Please review the attached letter titled “Public Act 202: Selection of the Uniform Assumptions”. This guidance includes the uniform assumptions, as well as expectations for implementation.
Although reporting of the uniform assumptions is not required for the fiscal year 2018 Form 5572 (Retirement System Annual Report), local units are encouraged to contact their actuaries and accountants to ensure compliance with future reporting and to understand how the uniform assumptions impact their retirement system(s).
Where to find PA 202 Forms, FAQs and current PA 202 status:
To find the current Form 5572, detailed reporting instructions, waiver application forms, corrective action plan forms, updated FAQs, and a local unit’s PA 202 status, please visit our website at Michigan.gov/LocalRetirementReporting. Please review the “Local Retirement System Summary with Data” to see a local unit’s status. If you have any questions, please send an email to our office at LocalRetirementReporting@michigan.gov.
Or if you would like to schedule a phone appointment, please use the Local Retirement Calendar, a staff member will contact you at your scheduled time.
Michigan Department of Treasury – Local Retirement Reporting Team
Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and email@example.com.