Suspending Health Care For Pontiac Retirees - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Suspending Health Care For Pontiac Retirees

LANSING, Mich. (AP) - A state board has approved a plan to suspend health care coverage for retirees from the city of Pontiac and increase their monthly pension payments.

The three-member Emergency Loan Board on Monday acted on state-appointed emergency manager Louis Schimmel's proposal to address an expected $6 million general fund shortfall in the current budget year.

The city's roughly 1,000 pensioners will get an extra $400 a month to buy their own health care. Schimmel had raised the prospect of bankruptcy if the plan wasn't approved.

City council members appeared at the meeting in Lansing to argue for an alternative plan. Loan board members indicated they could consider a viable alternative later if the city's finances change.

Pensioners will have to pay taxes on the extra $400 in monthly pension income.

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