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retiree health care

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Police officers, fire fighters, and other municipal employees are planning what they are titling a “call to action” Tuesday at the state Capitol.

Lawmakers are holding a second hearing on a series of bills that would cut health benefits for municipal retirees like police officers and fire fighters. The bills would aggressively scale back retiree health benefits in cities with high unfunded liability costs. 

steve carmody / Michigan Radio

LANSING, Mich. (AP) - A push to curtail health care benefits for municipal retirees in Michigan is setting off a fight between those who say billions in debt can no longer be ignored and critics who contend it would cheat people out of coverage.

  The new Republican-sponsored plan could be enacted yet this year. It aims to address $11 billion in unfunded liabilities.

  Starting in May, newly hired municipal workers would no longer qualify for health insurance in retirement. Local governments could instead contribute to a tax-deferred account such as a health savings plan.

Steve Carmody / Michigan Radio

The Kalamazoo City Commission will consider selling bonds to help cover part of its retiree health care costs tonight. 

City officials are considering a proposal to sell nearly $91 million in bonds to cover part the city’s legacy health care costs.    

Steve Carmody/Michigan Radio

Flint leaders say a federal court decision is threatening the city’s ability to recover financially.

Last week, a federal appeals court upheld a lower court ruling preventing the city from implementing cuts to retiree health care.  The plan would make Medicare-eligible city retirees pay higher monthly premiums, co-pays and deductibles.  

But the retirees sued.

Flint city leaders were hoping to reap $8.5 million over two years from the retiree health care cuts.