Grosse Pointe Shores Adopting Some of Committee's Recommendations

A 12-member resident committee worked for months to evaluate the retiree health care with the purpose of finding ways to save the city money in light of the ever-dwindling budget.

After presenting their findings and recommendations to the Grosse Pointe Shores council a few months ago, three of the Blue Ribbon Committee's recommendations are being implemented initially with nonunion employees. Unionized employees are still in negotiations with the city, and City Manager Brian Vick said he is hoping the same three changes will be worked into their contract. 

There were a number of recommendations that could save money both short- and long-term for the city. The first three to be implemented are:

• Retiree health care will no longer be offered to new employees, taking effect immediately.
• Change retiree health care for current nonunion employees from a defined benefit to a defined contribution plan.
• Gradually increase the employee contribution to health care costs. In the first year they'll contribute 25 percent and in the second year going forward, they'll contribute 50 percent.

Retiree health care expenses have been the topic of discussion throughout the Pointes, as it is generally the highest expense for each of the cities. A councilman in the Park described it as an unfunded mandate while in the Farms they noted the struggle with increase legacy costs during their budget discussions. 

The three changes will have only a small impact immediately, but all make for better long-term planning, Vick explained to the council.

Additional recommendations are being reviewed by attorneys as well as Shores officials to determine when, if appropriate, to implement them. 

Attempts to reach the Blue Ribbon Committee Chairman James Anderson were not successful.