News

Actions

Snyder task force: Municipalities must prefund retiree care

Posted at 9:30 AM, Jul 19, 2017
and last updated 2017-07-19 10:23:47-04

A task force created by Gov. Rick Snyder says municipalities should prefund the cost to provide health insurance to newly hired employees in retirement.

It's one of four recommendations issued Tuesday by the group, which studied $17 billion in unfunded health care and pension liabilities. The task force failed to find consensus on benefit changes such as capping employers' health costs and moving new hires into 401(k)-only plans.

It says there's no one-size-fits-all approach but recommends implementing a "fiscal stress test" for municipal retirement systems and creating a board to review local finances and help develop corrective actions.

The task force was at odds over the powers of the proposed Municipal Stability Board, settling on a more limited role.

Snyder wants lawmakers to act as early as the fall session.