Nate Heffron

By Journal Staff

NEGAUNEE — The city of Negaunee has been awarded a $969,575 grant to help shore up long-term pension obligations.

The Protecting MI Pension Program was created to help Michigan’s underfunded municipal pension systems, according to the Michigan Treasury Department’s website.

Under the Fiscal Year 2022-23 budget, the Michigan Department of Treasury was appropriated $750 million to establish and operate a local unit municipal pension principal payment grant program for qualified retirement systems with a funded ratio below 60%.

As of the 2022, a city audit performed by Anderson, Tackman & Company reports that Negaunee’s Municipal Employer’s Retirement System Fund is at 48% funded, which is an 8% drop from 2021.

“This is common for most plans across the state, unfortunately caused by the market,” City Manager Nate Heffron said.

According to a listing of municipal entities provided by the Department of Treasury, 142 out of 146 municipal pension plans fell below 60% as of their most recent retirement system annual report in 2021.

The cities of Marquette and Ishpeming were also listed among the local units in the state that qualified for the funding, according to the state treasurer’s website. The Marquette County Road Commission pension fund made the list of qualified retirement systems as well.