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Rogers City & Tawas police must submit plans on underfunded pension plans

Submitted by Phil Heimerl on May 18, 2018 – 12:56 amNo Comment
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The Michigan Department of Treasury is requiring more than 100 local units of government to develop plans to ensure the retirement benefits they promised to their employees and retirees are paid in the future.

The local units, of which two are in northeast Michigan, have 180 days to submit corrective action plans due to having an underfunded pension plan, retirement health care plan or both.

Plans must show the “underfunded status” has been addressed.

Both the City of Rogers City and the Tawas Police Authority have underfunded retirement pension plans and are required to submit corrective action plans.

Rogers City has a pension plan liability of nearly $11 million and is funded at 46.99 percent.  The trigger for submitting a corrective action plan is less than 60 percent funded along with a required annual contribution that is greater than 10 percent of the entity’s total revenue.

By comparison, Presque Isle County’s pension plan is 64.95 percent funded; and the City of Alpena’s pension plan is 76.47 percent funded.

The Tawas Police Authority has a pension plan liability of approximately $1.16 million and is funded at 54.38 percent.

School districts, colleges and universities are exempt from having to meet the corrective action guidelines.

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