City of Lansing announces change in retirement plans

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Mayoral staff and nonbargaining employees hired after August 1st will no longer receive certain benefit options.

After August 1st, these employees will only have a defined contribution retirement plan instead of a defined benefit plan. Basically the difference between a 401(k) and a pension system.

The City of Lansing Financial Health Team recommended this change to help address the City’s legacy costs. The City currently has more than $700 million in unfunded pension and retiree healthcare liabilities.

“This move is a step in the right direction,” said FHT Co-Chairs Brian Lefler and Ben Bakken.

Mayor Schor will also propose to City Council that incoming executive management members hired after August 1st, will only have a defined contribution retirement plan.

Mayor Andy Schor announced these changes in a memo today.

“This is an effort that we have the ability to implement right now,” said Mayor Schor.

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