Pontiac pension fund transfer could work, says CEO of statewide system

Via The Oakland Press,

By Dustin Blitchok, The Oakland Press
May 3, 2015
The Municipal Employees’ Retirement System, the statewide nonprofit that’s been suggested as a solution to Pontiac’s retiree health care liability, has 800 Michigan municipalities as clients and more than 100,000 participants.
Former Emergency Manager Lou Schimmel and others have said Pontiac’s 150-percent-funded, $500-million General Employees Retirement System could be transferred to MERS, with a portion of the Pontiac pension fund’s surplus being split off to pay for retiree health care.
Chris DeRose, CEO of the $9.4 billion retirement system, said the transfer is viable if approved by the Internal Revenue Service.
“We have products that would make that possible, assuming it is legal — and legal means, ‘does it meet IRS regulation?’” DeRose said during a wide-ranging interview with The Oakland Press.

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