A Pension Promises Win

The top priority for the WMPF this year has been: To ensure the spending of one-time dollars were used to achieve results that will be identifiable 10 years from now but not require funding 10 months from now. With a key focus on funding for unfunded liabilities like pension funds, including for local units of government.

Late on Thursday, June 30, a historic budget agreement was reached that directed $2.6 billion in additional funding to underfunded pension funds. This includes $750 million to fulfilling local government promises for Michigan retirees. This is the largest infusion of money to fulfill these liabilities that we’ve seen to date. And thanks to this, these investments will grow, compound and not only keep the promises to retirees but lift the future burden from our kids.

We appreciate the leadership of Senator Stamas and Rep. Albert to drive this achievement forward. Municipalities will need to make sure they’re taking steps to use the money properly and make their full payments on time.

This is a strong step forward – but there is still more work to go. Thank you to everyone who voiced their support for meeting pension promises. This is a top priority for the West Michigan Policy Forum to ensure we are not passing past mistakes to future generations.