“By lowering costs, Public Act 55 of 2017 is good both for local governments and for public employees,” said Hansen, R-Hart.
Hansen said the reduced costs are largely due to the new law lowering the minimum cash reserve amount that must be held by a mature PEPP. A mature PEPP is a pooled plan that has operated for at least five years.
In addition, under the new law, a pooled plan would no longer be able to meet the reserve requirement with a letter of credit.
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