A task force created by Governor Rick Snyder says municipalities should pre-fund the cost to provide health insurance to newly hired employees in retirement.
It's one of four recommendations issued Tuesday by the group, which studied $17 billion in unfunded health care and pension liabilities. The task force failed to find consensus on benefit changes such as capping employers' health costs and moving new hires into 401(k)-only plans.
It says there's no one-size-fits-all approach but recommends implementing a "fiscal stress test" for municipal retirement systems and creating a board to review local finances and help develop corrective actions.
The task force was at odds over the powers of the proposed Municipal Stability Board, settling on a more limited role.
Snyder wants lawmakers to act as early as the fall session.