Lawmakers considering city pension reforms
LANSING — Dozens of cities, villages, townships and counties across Michigan are drifting into a perfect storm of flat income and big bills for retiree costs, but some are worried the Legislature could rush reforms this year that end up hurting more than they help.
Statewide, local governments are carrying some $4 billion in unfunded pension debt and $11 billion in unfunded retiree health care costs, according to the Michigan Treasury. That's putting the squeeze on many local governments whose revenues from property taxes and the state are relatively flat.
This year, when the Municipal Employees' Retirement System of Michigan (MERS) — which manages eight in 10 local government pension programs — asked municipalities to pay more to catch up, it put many governments in a serious bind.
Communities "are panicked about this issue across the state," said Port Huron City Manager James Freed, who convened nearly 70 communities in Lansing this fall to discuss the MERS changes. He called it "a clear and present danger" to government services.
Read more: http://www.lansingstatejournal.com/story/news/local/watchdog/2016/11/17/pension-showdown-possible-lame-duck/93296232/