Financial director Angela Bennett said those costs are expected to be nearly $700 million over the next 30 years.
The problem is the city has about twice as many retirees as active employees, and that legacy funding has become a staggering financial burden on the city.
The team chaired by former mayor Davis Hollister made several short and long term recommendations.
He said the group is looking for the "least worst option" and asks for patience while they try to find solutions.
More than 50 options were given as part of the study to save spending and create revenue.
Two mayoral hopefuls discussed the legacy costs at the economic club luncheon. Councilwoman Judi Brown Clarke and State Representative Andy Schor talked about the future financial success of Lansing.
"We've have a presentation with the financial health team working together. With those recommendations, We'll able to come up with about three to four different targeted ways of saving dollars and cost savings to our savings plan," Judi Brown Clarke said.
"We're going to put all of the factors together, and I'm serving on the governor's tasks force on pension and healthcare, and we're going through options there," Andy Schor added.
