LANSING, Mich — A major surprise will impact 105 retired Lansing firefighters starting next month as they face significant increases in their healthcare costs.
- Retired Lansing firefighters will see healthcare costs rise by hundreds of dollars monthly beginning July 1.
- City officials say they've been incorrectly covering costs that retirees should have been paying since 2013.
Some retirees expressed concerns at a city council meeting about the financial impact on their fixed incomes.
The change comes after city officials discovered they had been covering healthcare costs that should have been paid by the retirees themselves.
WATCH: Lansing firefighter retirees blindsided by healthcare cost increases
"These retirees were living their best life in peace and all of a sudden out of the blue, we're told that their health care costs will rise significantly," said Brad Jorae, President of Lansing Firefighter Local 421.
City officials say the extra cost amounts to a few hundred dollars a month, which prompted several retirees to voice their concerns at this week's city council meeting.
"The only way we could make extra money now is to get another job because a lot of us didn't pay into another retirement plan, this is the only one we have," one retiree said during public comment.
The issue stems from an oversight that began in 2013 when the retirement benefit contract first went into effect.
"We missed that the retiree benefits are supposed to be paying for their benefit... so the city has been paying for them for a few years, when they should've been paying," Mayor Andy Schor said.
Schor explained that the city recently recognized their mistake and needed to legally correct it.
"As everyone knows health care costs are going up," Schor said. "The language in the contract and the language in the cost says they have to pay that cost at any given time and that cost changes year to year and they have to pay accordingly."
LANGUAGE IN CONTRACT IS BELOW:
The mayor acknowledged the inconvenience but maintained he must act financially responsibly for the city. According to Schor, keeping retirement costs at their current level would cost Lansing about $400,000 annually.
"We just can't give money to people, these are city tax payers dollars," Schor said.
However, Council President Ryan Kost believes money shouldn't be the priority in this situation and has even suggested firefighters consider legal action.
"I don't want it to have to go there," Kost said. "I'd just like to figure out how to reduce those costs... legally while honoring the contract."
The retiree benefit increases are expected to go into effect on July 1.
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