MI SB0922

Counties, cities, villages, and townships may issue municipal securities through December 31, 2015 without voter approval to fund unfunded pension liabilities when ceasing accruals to or closing defined benefit plans.

Local governments may issue municipal securities without voter approval to fund unfunded accrued health care liabilities and must deposit proceeds in a health care trust fund or restricted fund within a trust.

Before issuing municipal securities, local governments must prepare a comprehensive financial plan including analysis of retirement and health care obligations, evidence of sufficiency of funds, debt service schedule, and certification of accuracy.

Issuing municipalities must obtain department approval and must have a credit rating of AA or higher from at least one nationally recognized rating agency to be eligible to issue these securities.

If a municipality issues a security under the pension provision, it cannot rescind the partial or complete cessation of accruals to the defined benefit plan, but may reduce benefits for future years of service.