Flint receives $220M for pension fund

The city of Flint is receiving a big boost in its pension fund. The state of Michigan is providing $220 million to help tackle the city’s pension fund deficit.
Published: Jul. 6, 2022 at 3:26 PM EDT|Updated: Jul. 7, 2022 at 7:34 AM EDT
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FLINT, Mich. (WNEM) - The city of Flint is receiving a big boost in its pension fund.

The state of Michigan is providing $220 million to help tackle the city’s pension fund deficit.

“It’s a historic day for the city of Flint,” said Robert Widigan, Flint Chief Financial Officer.

Widigan is talking about an infusion of state funding that will ease the Vehicle City’s cost of pension payments.

“It’s actually $220 million, which will bring the city of Flint up to 60 percent funded and reduce our annual payment down to around $18 to $19 million annually towards our pension system,” Widigan said.

City leaders say they’ve been working with the state legislature to make this happen. The state dollars are slated to arrive in August 2023.

“So without this funding, our annual payment for pension was projected to reach almost $40 million a year, completely unsustainable,” Widigan said. “Without this funding, the city of Flint did not have a financial path forward.”

Mayor Sheldon Neeley said that his top priority is to make sure city employees and city retirees have a stable pension. It’s a goal that just became a lot more realistic.

“This will ensure that our hard-working employees and retirees pensions will remain secure and funded, and this package is a huge step forward to ensuring that the city of Flint is financially stable for generations to come,” Widigan said.