$969K Protecting Michigan’s Pension Grant Awarded

The City of Negaunee is pleased to announce that a $969,575 Protecting Michigan’s Pension Grant has been awarded to the city to help shore up long-term pension obligations.

According to the Michigan Treasury Department’s website, “The Protecting MI Pension Program was created to help Michigan’s underfunded municipal pension systems. Under the Fiscal Year 2022-23 budget, the Michigan Department of Treasury was appropriated $750 million to establish and operate a local unit municipal pension principal payment grant program for qualified retirement systems with a funded ratio below 60%, as defined in the Protecting Local Government Retirement and Benefits Act, Public Act 202 of 2017)”.    

As of the 2022, a city audit performed by Aderson Tackman reports that the City’s Municipal Employer’s Retirement System Fund (MERS) is at 48% funded, an 8% drop from 2021.

“This is common for most plans across the state, unfortunately caused by the market.", City Manager Nate Heffron said.

According to a listing of communities provided by the Department of Treasury, 142 out of 146 plans fall below 60% as of their most recent Retirement System Annual Report in 2021.

Questions concerning this release may be directed to the attention of the City Manager, Nate Heffron at (906) 475-7700 ext. 11.