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Snyder Task Force: Municipalities Must Prefund Retiree Care

Snyder Task Force: Municipalities Must Prefund Retiree Care

July 18, 2017 09:50 AM

LANSING, Mich. (AP) - A task force created by Gov. Rick Snyder says municipalities should prefund the cost to provide health insurance to newly hired employees in retirement.

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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.


WDIO

Copyright 2017 The Associated Press. All rights reserved.

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