Mich. Comp. Laws § 38.571
Reserve fund; use of interest for medical, hospital, or nursing care for system member; "reserve fund" defined.
Subject to the protecting local government and retirement benefits act, the board of trustees with the approval of the governing body of the county, city, village, or township of any police and firemen retirement system, municipal employees retirement system, or county retirement system may use not more than 1/2 of the…