Northville City Council Approves Study on Rising Post-Retirement Health Care Costs
In future employee contract negotiations, the city will seek to reduce future costs, city manager Patrick Sullivan said.
Post-retirement health care costs have more than doubled for the city of Northville from 2003 to 2009 -- and they're expected to continue to rise, officials said Monday night.
The city council approved a study to look into the future liability of health care costs. The city council does this every three years, and last performed the study in-house in 2009.
"It looks like a very scary future in terms of liability costs," said city councilwoman Nancy Darga.
Costs have risen for the city of Northville from $3 million in 1996 to about $9 million in 2003 to $19 million in 2009.
At issue are the costs the city pays out to employees who are already retired, not current employees. Their health care costs differ than previous employees', city manager Patrick Sullivan said. And reducing those costs in the future will be considered in the city's next round of employee negotiations.
The city will pay Ohio-based Tegrit $3,900 for its post-retirement health care funding study.