Retired City of Westland employees just received a $26 million benefit from the state of Michigan.
The monumental boost was awarded through the Michigan Department of Treasury where the grant of $26,147,293 was approved and will be applied to the City of Westland Municipal Employees Retirement System.
In 2022, the Michigan Department of Treasury was appropriated $750 million in the state budget to establish and operate a municipal pension grant program for retirement systems with a funded ratio below 60 percent. Westland officials applied for grant funding Under the program and recently received confirmation that the application was approved.
The funding under this grant will be directly allocated into the city MERS pension system. Funds are expected to arrive by the end of August and the allocation will significantly strengthen the Westland MERS pension system, officials said. The grant will result in a marked reduction in future payments needed into MERS, officials said.
“This critical appropriation from the Michigan Department of Treasury is a testament to our continued commitment to secure the future of our municipal employees,” said Mayor Michael P. Londeau. “This will have a positive impact on the city's finances, ultimately leading to savings that can be further invested in the enhancement of our community.”
The savings from this grant allocation are currently being calculated and will be finalized and communicated to the public by the fourth quarter of 2023.
“We would like to express our gratitude to the State of Michigan Department of Treasury for their support and confidence in our commitment to sustainable local governance,” Londeau continued. “We believe that this grant will play a crucial role in promoting the financial stability of our great city.”
