Pension and OPEB underfunded status after Michigan PA 202

The Protecting Local Government Retirement and Benefits Act (the Act) addressed underfunding issues associated with pension plans and retiree medical plans in Michigan that are sponsored by local governments. Prescribed actuarial assumptions used to make calculations have not yet been set. This paper aims to help stakeholders of Michigan’s many local government pension and other post-employment benefit programs develop informed expectations around the range of outcomes that could result from the state treasurer’s decisions about actuarial assumptions as they relate to the Act.