Legislature may curtail municipal retiree health benefits - WNEM TV 5

Legislature may curtail municipal retiree health benefits

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 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.
Copyright 2016 The Associated Press. All rights reserved. 

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