City deputy CFO: retirement plans meet state thresholds; $10M retiree supplement still requires full council and court approval

John Naglak, the city’s chief deputy CFO and controller, presented the required local government retirement‑system annual report and told committee members the city does not meet any of the state’s reporting “triggers” under Public Act 202 that would require corrective actions.

Naglak said the city has four pension plans: two legacy plans that required recent catch‑up funding after a 10‑year pause and two post‑bankruptcy plans that are “near 100%” funded. He described the report as a statutory filing that must also be transmitted to council and said it is posted on the Office of the Chief Financial Officer section of the city website and on the Michigan Department of Treasury site with other local filings.

On the supplemental payment often referred to as the “thirteenth check,” Naglak clarified that the Internal Operations Committee approved $10,000,000 earlier the same day and that the item now must return to full council for approval. If full council approves the transfer, Naglak said the next step is final approval by the bankruptcy court; only after the court’s authorization would funds be transferred to the retirement systems and added to retirees’ next monthly checks.

LPD member Corley noted the general retirement system’s funded ratio at 62.4% in the report and thanked the state grant of about $23,000,000 that helped prevent a statutory funding trigger under state law. The committee took action to receive and file the transmittal report for record keeping.

No formal vote count was recorded in the transcript; the clerk recorded the committee’s unanimous consent to receive and file the item.