Michigan Municipal Basics

  • Established 1945
  • Currently open to new hires
  • Plan covers local employees
  • Most plan members covered by Social Security (each participating district decides their own SS participation).
  • Multiple employer, agent plan

Assets, Participants, and Benefits

Assets at Year-End, Michigan Municipal, 2001-2018

Fiscal Year Net Assets (billions)
2001 3.6
2002 3.3
2003 4.1
2004 4.6
2005 4.9
2006 5.6
2007 6.1
2008 4.5
2009 5.3
2010 6.0
2011 5.9
2012 6.9
2013 7.7
2014 8.1
2015 7.9
2016 8.5
2017 9.5
2018 9.0

Source: Public Plans Database

Number of Actives per Annuitant, 2001-2018

Fiscal Year Michigan Municipal US State and Local Pensions
2001 2.2 2.5
2002 2.1 2.4
2003 2.0 2.3
2004 1.9 2.3
2005 1.8 2.2
2006 1.7 2.1
2007 1.6 2.1
2008 1.5 2.1
2009 1.4 2.0
2010 1.3 1.9
2011 1.2 1.7
2012 1.1 1.7
2013 1.1 1.6
2014 1.0 1.5
2015 0.9 1.4
2016 0.9 1.4
2017 0.9 1.3
2018 0.9 1.3

Source: Public Plans Database

National data averages are weighted by plan size.

Costs

Employer's Annual Required Contribution as a Percentage of Payroll and Portion Paid for Michigan Municipal, 2001-2017

Fiscal Year Portion of Employer ARC paid Portion of Employer ARC left unpaid US Avg Employer ARC ARC as a Percent of Payroll {role:annotation}
2001 9.6 0.0 5.0 9.3 9.3
2002 9.6 0.0 4.8 9.4 9.4
2003 11.7 0.0 5.7 9.6 9.6
2004 11.7 0.0 7.3 10.8 10.8
2005 12.6 0.0 9.0 11.6 11.6
2006 13.8 0.0 9.3 12.9 12.9
2007 15.0 1.3 10.0 16.3 16.3
2008 15.2 0.0 10.4 13.8 13.8
2009 15.8 0.0 10.2 14.0 14.0
2010 17.2 0.0 10.5 15.7 15.7
2011 17.7 0.0 12.5 15.9 15.9
2012 19.0 0.0 12.9 17.6 17.6
2013 18.4 0.0 14.0 18.4 18.4
2014 19.4 0.0 14.4 19.4 19.4
2015 20.4 0.0 14.9 20.4 20.4
2016 22.0 0.0 14.8 22.0 22.0
2017 23.0 0.0 15.1 23.0 23.0

Source: Public Plans Database

National data averages are weighted by plan size.

Actuarial Funding

Actuarial Funded Ratio for Michigan Municipal, 2001-2018

Fiscal Year Michigan Municipal National Data
2001 84.3 106.5
2002 79.8 101.1
2003 78.7 94.2
2004 76.7 93.1
2005 76.0 91.1
2006 76.4 90.5
2007 77.3 91.2
2008 75.1 90.2
2009 75.5 83.2
2010 74.5 81.5
2011 72.6 80.4
2012 71.4 78.9
2013 71.7 78.7
2014 70.6 79.0
2015 66.5 78.2
2016 66.8 76.3
2017 67.7 76.4
2018 67.7 76.5

Source: Public Plans Database

National data averages are weighted by plan size and reflects the average for plans of similar type and Social Security coverage.

Investments

Asset Allocation for Michigan Municipal, 2018

Category Percent
Equities 49.4
Fixed Income 28.9
Private Equity 0.0
Real Estate 0.0
Cash 0.0
Other 0.0
Commodities 11.4
Hedge Fund 10.4
Misc. Alternatives 0.0

Source: Public Plans Database

Asset Allocation for State and Local Pensions, 2018

Category Percent
Equities 48.4
Fixed Income 21.8
Private Equity 9.0
Real Estate 8.4
Cash 1.8
Other 0.3
Commodities 1.9
Hedge Fund 7.1
Misc. Alternatives 1.3

Source: Public Plans Database

National data averages are weighted by plan size.


Asset allocation for Michigan Municipal, 2005-2018

Fiscal Year Equities Fixed Income Private Equity Real Estate Cash Other Commodities Hedge Fund Misc. Alternatives
2005 59.0 28.0 4.8 6.9 1.3 0.0 0.0 0.0 0.0
2006 52.9 28.3 7.9 7.6 1.4 0.0 1.9 0.0 0.0
2007 50.8 30.1 9.0 6.6 1.2 0.0 2.3 0.0 0.0
2008 39.5 34.4 12.8 8.1 3.0 0.0 2.2 0.0 0.0
2009 46.7 31.4 9.9 6.0 0.9 0.0 5.1 0.0 0.0
2010 43.8 32.7 10.0 5.1 2.9 0.0 5.5 0.0 0.0
2011 43.3 32.9 9.8 6.2 1.7 1.1 5.0 0.0 0.0
2012 43.0 30.8 7.5 6.0 6.5 0.8 5.4 0.0 0.0
2013 49.0 28.5 7.1 4.3 5.8 0.9 4.4 0.0 0.0
2014 52.1 22.8 6.5 2.4 0.0 0.0 9.1 7.1 0.0
2015 47.5 23.2 6.2 3.1 0.0 0.0 6.4 8.6 0.0
2016 47.4 21.5 4.8 3.7 0.0 0.0 7.5 9.2 0.0
2017 57.4 23.9 0.0 0.0 0.0 0.0 9.5 9.2 0.0
2018 49.4 28.9 0.0 0.0 0.0 0.0 11.4 10.4 0.0

Source: Public Plans Database


Annual Return as of December 31 for Michigan Municipal, 2001-2018

Fiscal Year Michigan Municipal Assumed return
2001 -2.10 8.00
2002 -8.60 8.00
2003 24.70 8.00
2004 6.80 8.00
2005 6.80 8.00
2006 13.60 8.00
2007 8.60 8.00
2008 -24.80 8.00
2009 17.30 8.00
2010 14.43 8.00
2011 2.30 8.00
2012 11.39 8.00
2013 15.00 8.00
2014 6.68 8.00
2015 -1.02 7.75
2016 10.85 8.00
2017 13.20 8.00
2018 -3.64 6.80

Source: Public Plans Database

National data averages are weighted by plan size.

Cash Flows

Cash Flow vs. Total Assets (Millions)
Michigan Municipal
2001-2018

Fiscal Year Cash Flow Assets
2001 -53.6 3,647.8
2002 -44.6 3,285.3
2003 -13.5 4,072.0
2004 -40.0 4,619.5
2005 -11.8 4,907.4
2006 47.7 5,590.0
2007 20.0 6,066.3
2008 -20.7 4,512.3
2009 -25.4 5,276.6
2010 -57.6 5,973.0
2011 -165.2 5,937.9
2012 266.2 6,872.5
2013 -185.1 7,676.0
2014 -99.3 8,078.0
2015 -50.5 7,886.6
2016 -280.7 8,473.5
2017 -173.5 9,476.1
2018 -114.3 8,967.3

Source: Public Plans Database


Cash Flow as a Percentage of Assets
Michigan Municipal
2001-2018

Fiscal Year Michigan Municipal National Average
2001 -1.5 -2.0
2002 -1.4 -2.7
2003 -0.3 -2.2
2004 -0.9 -1.6
2005 -0.2 -2.0
2006 0.9 -1.9
2007 0.3 -2.0
2008 -0.5 -3.0
2009 -0.5 -2.6
2010 -1.0 -2.4
2011 -2.8 -2.7
2012 3.9 -2.6
2013 -2.4 -2.3
2014 -1.2 -2.3
2015 -0.6 -2.7
2016 -3.3 -2.2
2017 -1.8 -2.7
2018 -1.3 -2.7

Source: Public Plans Database

National data averages are weighted by plan size.

2017 Financial Reports

Benefits

Website for Michigan Municipal benefit descriptions.