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Lansing looks to eliminate retiree health care for department directors

Mayor Andy Schor
Posted at 5:07 PM, Dec 03, 2021
and last updated 2021-12-03 17:07:56-05

LANSING, Mich. — Lansing Mayor Andy Schor is putting forth a resolution that he calls the "final step" in his plan to eventually eliminate retiree health care for city workers and save the city money.

The resolution would eliminate retiree health care specifically for the city's 11 department directors, the only city employees left who are receiving retiree health care.

By making this move, Schor says, "We're closing the retiree health care plan. We've already done it with all of our unions. This is just the final step."

Schor has been working for years to get to this point.

"There's been many attempts to try and figure out a way to do this. It's been kind of hit or miss," said Eric Scorsone, director of Michigan State University's Extension Center for Local Government Finance and Policy.

Scorsone says providing retiree health care has proven to be a crippling burden for many other cities, notably Detroit.

If passed, Schor's resolution would affect city employees hired on or after July 1, 2016.

When these employees lose their retiree healthcare, they, like all city workers who have gone through this process, will gain a healthcare savings account funded by the city.

Schor says the City Council will vote on this final step in the coming weeks, most likely Dec. 13.

"It'll help the city's budget in the long term," Schor said.

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