Public Act 530 of 2016: Additional legacy cost reporting
On December 31, 2016, Michigan Governor Snyder signed Public Act 530 of 2016 which amends Public Act 314 of 1965, also known as Public Employee Retirement System Investment Act (PERSIA).
Under the existing Act, communities were required to publish a Summary Annual Report setting forth key information related to pension and retiree healthcare plans. The amendment requires that this Summary Annual Report also be submitted to the Michigan Department of Treasury within 30 days of publication.
In addition, for any system (either pension or retiree healthcare) that is not funded at a level of at least 60%, the community must now post a report to their website indicating steps that are being undertaken to address the liability. In addition, this report must be submitted to the Department of Treasury within a reasonable time frame.
The legislation calls for the Department of Treasury to accumulate all of the reports and publish a summary of funding levels throughout the State.