The City participates in the Municpal Employees' Retirement System of Michigan (MERS), an agent multiple-employer defined benefit pension plan that covers all full-time employees of the City of Ypsilanti not eligible for other retirement systems. The MERS provides retirement, disability, and death benefits to plan members and their beneficiaries.
The obligation to contribute to and maintain the MERS for these employees was established by City ordinances and requires a contribution from the employees of 5.0% of annual compensation.
Fire & Police Pension Valuations
The Police and Fire Retirement System is a single-employer defined benefit pension plan that is administered by the City of Ypsilanti Police and Fire Employees' Retirement System; this plan covers all full-time police and fire employees of the City. The System provides retirement, disability, and death benefits to plan members and their beneficiaries.
The obligation to contribute to the System for those employees was established by City ordinances and state statute. The funding policy provides for periodic employer contributions at rates determined by actuary.
OPEB Valuation Reports Plan Description
The City of Ypsilanti sponsors life insurance and health benefit plans for retired former employees. The City City subsidizes a portion of cost of coverage for eligible retired employees and their dependents.
The City has no obligation to make contributions in advance of when the insurance premiums or benefits are due for payment; in other words, the plan may be financed on a pay-as-you-go basis. Administrative costs of the plan are paid for by the City's general fund. Plan participants are not required to contribute to the plan.