91.7 Ann Arbor/Detroit 104.1 Grand Rapids 91.3 Port Huron 89.7 Lansing 91.1 Flint
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

Legislature may curtail municipal retiree health benefits

steve carmody
Michigan Radio

LANSING, Mich. (AP) - A push to curtail health care benefits for municipal retirees in Michigan is setting off a fight between those who say billions in debt can no longer be ignored and critics who contend it would cheat people out of coverage.

  The new Republican-sponsored plan could be enacted yet this year. It aims to address $11 billion in unfunded liabilities.

  Starting in May, newly hired municipal workers would no longer qualify for health insurance in retirement. Local governments could instead contribute to a tax-deferred account such as a health savings plan.

  In many municipalities, retirees would have to pay at least 20 percent of the cost of coverage.

  The debate comes as another retirement proposal - closing the pension system to newly hired teachers - is stalled in the Republican-controlled Senate.

The Associated Press is an independent global news organization dedicated to factual reporting.
Related Content