BATTLE CREEK, Mich. (Michigan News Source) – The city of Battle Creek’s payments to its employee pension plan increased from $6.9 million in 2023 to $12.7 million in 2024.
Battle Creek, like hundreds of municipalities in the state, is facing a pension crisis with not enough money set aside to pay its projected retirement payments.
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Battle Creek has $178.8 million in pension obligations and just $107.2 million set aside to cover those costs, or 60%.
But hundreds of other municipalities are in the same situation, according to the Municipal Employees’ Retirement System. MERS is the statewide public employee pension plan that was created by the state Legislature in 1945 and is administered by a nine-member board.
The city of Flint has $540.8 million in pension liabilities with $332.9 million set aside in a retirement fund to pay for it. Flint has covered just 61.6% of its expected pension obligations as of 2023.
Other notable cities in the MERS system that have underfunded pension plans include Traverse City (58%), Saginaw (60.8%). Midland (64.6%), East Lansing (67.4%), Farmington (72.4%) and Dearborn (91.7%).
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