Via Midland Daily News
By John Kennett
An underfunded pension plan has forced the City of Midland to take corrective action with the state.
The City of Midland has three defined-benefit retirement plans. Two of those, the Retiree Health Care and Public Act 345, Fire Fighters and Police Officers Retirement Act, are in good shape according to state officials. But, the third, the Municipal Employees’ Retirement System of Michigan (MERS), has been determined to be underfunded.
“Every defined benefit plan, the employer is required to submit an annual report to the Department of Treasury. This report includes very specific information from the city’s audit report, which the state also has as well as the actuary’s report. From that, the state determines the funding status of each plan,” Assistant City Manager David Keenan recently reported to City Council.