Bloomfield Township plans to issue bonds to pay for retiree pensions
Bloomfield Township plans to become the first community in Michigan to issue bonds that will pay for retiree pensions or health care.
Leo Savoie is the Bloomfield Township supervisor. He says the pension fund is something with which taxpayers have to deal. The plan to issue bonds to pay for retiree pensions will lighten the load on community members.
“Here's what I do know, that next year if we do nothing, the township will pay 10 million dollars into the pension fund. By doing this, we can cut that down to 6 million dollars.”
The Township Finance Director Ray Perkins added that issuing bonds would also lead to significant long-term savings for taxpayers.
“The 20-year projection in savings is 60 million dollars or averages 3 million dollars per year in savings for the taxpayer," says Perkins.
Bloomfield Township officials plan to hold two public town hall meetings to discuss the overall plan and any foreseeable risks over the coming months.
The township's board of trustees plans to proceed with the planned sale of bonds before the end of the year.
-Lindsay Hall, Michigan Radio Newsroom