Action Needed Today: Retiree Benefits on the Chopping Block

The Michigan House is considering bills on Tuesday that would erode retirees’ benefits. Please contact your State Representative to urge a NO vote!

A 13-bill package was introduced in the Michigan House late last week which would create the Local Unit of Government Retirement Act. House Bills 6074-6086 would cap a local government’s contribution for retiree health benefits for existing employees and retirees at 80% of the benefit cost. The package would also eliminate retiree health benefits for local government employees hired on or after May 1, 2017, and allow local governments to replace them with a contribution to a tax-deferred account not to exceed 2% of the employee’s base pay. In addition, the legislation would eliminate retiree health care benefits from collective bargaining.

AARP continues to oppose legislation that reduces retiree health benefits. This legislation would underinsure current retirees and force them to cover additional healthcare costs they hadn’t planned for.

This legislation is moving fast! The House Committee on Local Government will take up these bills at 8:15 a.m. on Tuesday, December 6, with the intent to vote the package onto the House Floor.

Please contact your State Representative right away to urge him or her to VOTE NO on House Bills 6074-6086. You can find your State Representative’s contact information by clicking here:   http://house.michigan.gov/mhrpublic/