Sec. 2.
The legislature finds and declares the following:
(a) If certain requirements are fulfilled, this state shall make a contribution to reduce deficiencies in pension benefits of members of retirement systems, in order to avoid additional ongoing and future litigation and to partially settle the city of Detroit's bankruptcy case, in return for, among other things, full releases from any claims against this state for alleged deficiencies in pension benefits.
(b) Partial settlement of the city of Detroit's bankruptcy case and this state's contribution in support serves important public purposes and will be beneficial to the entire state due to 1 or more of the following:
(i) It will improve household income of pensioners, many of whom may reside in other parts of this state, and reduce the likelihood of their seeking public assistance.
(ii) It will facilitate prompt resolution of the city of Detroit's bankruptcy case and save state taxpayers ongoing litigation costs.
(iii) It will protect this state and its taxpayers from potential claims from parties associated with the retirement systems.
(c) Establishing the authority and execution by the authority of its powers granted under this act fulfill in all respects a public and governmental purpose for the benefit of the people of this state.
History: 2014, Act 187, Imd. Eff. June 20, 2014