Michigan House approves potential tax break for exonerees

 

A handful of local governments are among the over 100 that will be taking corrective action to make sure retirees get what they were promised.

More than 110 of the state's 490 municipal groups, including townships, cities and counties were identified as having either underfunded retirement healthcare or pension plans and in some cases both.

In December of last year Governor Rick Snyder signed the The Protecting Local Government Retirement and Benefits Act, which identified problems in the pension funds.

According to the Michigan Department of Treasury 16 local governments have underfunded plans, including: Bay City Retirement Healthcare Bay Metropolitan Transit Authority Retirement Pension and Retirement Healthcare Essexville Retirement Healthcare Beecher Metropolitan District Retirement Healthcare Burton Retirement Healthcare Davison Retirement Pension and Retirement Healthcare Davison Richfield Senior Citizens Authority Retirement Pension Flint Retirement Pension and Retirement Healthcare Flushing Retirement Pension and Retirement Healthcare Montrose Retirement Healthcare Mt. Morris Township Retirement Pension and Retirement Healthcare Richfield Township Retirement Healthcare Lapeer Retirement Healthcare Midland Retirement Pension Saginaw Retirement Pension and Retirement Healthcare St. Charles Retirement PensionWithin 180 days the cities and townships will need to submit plans to correct problems to the Municipal Stability Board. Those plans will need to show that the issues have been addressed.

Healthcare is underfunded when plans are less than 40 percent funded and if the cost of contributions is more than 12 percent of total revenue. Pension plans are underfunded when they are less than 60 percent funded and the required contribution is more than 10 percent of total revenue.

Copyright 2018 WNEM (Meredith Corporation)/The Associated Press. All rights reserved.

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