Ann Arbor, Mich., hired Aon as consultant to advise the city on a potential purchase of a group annuity contract from an insurance company to transfer the liabilities of the $504 million Ann Arbor City Employees' Retirement System, said Tom Crawford, the city's chief financial officer, in an email.
The city issued an RFP in March because it is exploring the possibility of transferring some or all of its pension liabilities due to the volatility of its required annual contributions, Mr. Crawford said at the time. The amount of the contract has yet to be determined.
Five firms submitted proposals. There were no named finalists, Mr. Crawford said.
As of June 30, 2018, the pension fund's liabilities totaled $584 million, giving the pension plan a funding ratio of 86.3%. Current retirees as of that date accounted for $383 million in liabilities.