Interest Allowable—Traditional Retirement Plan.
Ann Arbor City Code § 1:567
in effect1:567. - Interest Allowable—Traditional Retirement Plan.
(1) The Board shall, at the end of each fiscal year, allow and credit (a) interest at the Accumulated Contribution Interest Rate set forth in section 1:552.1(2) on a Member's individual balances in the Annuity Savings Fund at the beginning of the fiscal year and (b) interest at the Funding Interest Rate as set forth in section 1:552.1(22), on the mean balance in the Retirement Reserve Fund (including the pension adjustment account) during the fiscal year. At the end of each fiscal year, the Board shall review the 5-year moving average annual total return rate on the investments of the Retirement System, and also the actuarial funded status of the Retirement System. On the basis of this review, the Board shall decide whether any additional interest shall be credited to the Retirement Reserve Fund.
The amounts so credited as provided in this subsection shall be charged to the undistributed investment income account within the Pension Reserve Fund.
(2) All investment income realized on the monies and investments of the Retirement System shall be credited to the undistributed investment income account of the Pension Reserve Fund. If the balance in the account at the end of the fiscal year is insufficient to credit the amounts stipulated in subsection (1), the difference shall be charged to the Pension Reserve Fund. Any balance remaining in the account after crediting all amounts stipulated in subsection (1) shall be closed to the Pension Reserve Fund.
(Ord. No. 16-28, § 1, 1-3-17)
Source: City of Ann Arbor, Michigan, Code (Municode Library, library.municode.com)URL: https://library.municode.com/mi/ann_arbor/codes/code_of_ordinances?nodeId=TITIAD_CH18EMRESY_1_567INALRAREPLFetched: 11/8/2026