Pension-OPEB report shows need for state to adopt tailored, long-term approach to complex liability issues

Steve Currie

Steve Currie

Michigan needs to tailor long-term solutions to the specific circumstances of local governments struggling to cover pension and OPEB liabilities said the Michigan Association of Counties in response to the new report of a gubernatorial task force.

Gov. Rick Snyder’s Task Force on Responsible Retirement Reform for Local Government met over the winter and spring to study unfunded liabilities exceeding $14 billion for pensions, health and other benefits for employees. The group’s report properly notes that:

  • “As local units across the state are unique and at different stages in dealing with this problem, there is not a one-size-fits-all solution – we must be flexible in our approach.” (page 3)
  • “Attention should focus on the local units experiencing the greatest fiscal stress as it relates to pension and OPEB liabilities.” (page 3)

“It’s important for legislators and citizens to understand that there’s no overnight fix to this issue,” said Stephan W. Currie, MAC’s executive director.

Currie, who served on the 23-member panel, added, “A ‘one-size-for-all’ approach will not work for everyone, which the report rightly highlights. For example, most of our 83 county members either are in solid shape in setting aside money for these commitments or did not extend them in the first place. We need to start with a system that identifies the governments struggling with legacy costs, as is urged in the report.

“MAC is appreciative of the opportunity to participate with a diverse group of stakeholders and looks forward to working with the governor, legislators and others in the ongoing pursuit of stable funding.”

The full report and additional details are available at the governor’s website.

For more information on the Michigan Association of Counties, visit www.micounties.org.