Legislation now awaits Gov. Snyder’s signature that will end taxpayer-paid health care benefits for retired legislators. This is another small step toward bringing the benefits of government workers in line with the private-sector.

Retiree health care is expensive, especially for retirees not yet eligible for Medicare. The state pays up to $14,000 per retiree to provide this benefit. This money comes directly from taxpayers.

It’s also a benefit that few people in the private-sector enjoy. A 2010 Mackinac Center study explored the benefits offered to employees at 24 major Michigan businesses and found only three offered any employer-subsidized retiree health coverage to new hires. These benefits are prevalent among employees in Michigan’s government sectors, though.

Still, some governments are reconsidering this benefit. Michigan State University stopped offering this benefit in 2010. Bloomfield Township recently voted to cap its costs to provide it. Indeed, a report from the Citizens Research Council found that 39 county governments do not offer this benefit and that nine counties had stopped offering this benefit in the past five years.

Stay Engaged

Receive our weekly emails!

The state still mandates these benefits for employees in the state retirement system and in the school retirement system. This cost $1.1 billion in 2010, a substantial increase from $596 million in 2000.

It’s one of the reasons that retirement benefits cost three to five times more than private-sector averages.

By eliminating these benefits to new legislators at the state-level, legislators showed a willingness to bring benefits in balance. It should apply the same thinking to the other retirement systems under its control.

~~~~~

See also:

Video: Benefits in Balance

~~~~~

Related Articles:

Let Them Work: Solutions for Michigan’s Overbearing Occupational Licensing Laws

Your Tax Return Fundraises For These Nonprofits

Karl Marx the Most Assigned Text at Michigan Colleges

West Virginia House Vote Could Tip National Scale on Right-to-Work

February 5, 2016 MichiganVotes Weekly Roll Call Report

Little Evidence That Unions Make Workers Safer

Stay Engaged

Simply enter your email below to receive our weekly email:

Facebook
Twitter

Public charter schools give parents more options. They provide options that may not be available in a traditional public school setting. ChoosingCharters.com tells the stories of parents and students who find value in public charter schools and how their lives have been improved with choice. Visit ChoosingCharters.com for more information.

Related Sites