City of Lansing announces change in retirement plans

Local News

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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