City council urges swift payout of retirees' frozen $400 benefit as talks with GERS continue

Pontiac City Council voted Feb. 4 to make completing an update to the city retiree settlement — restoring a $400 monthly benefit for eligible retirees and arranging retroactive payments — its top legislative priority for 2025, and later in the meeting approved a separate resolution authorizing payout of unused earned sick time for council offices’ staff.

The action follows months of public comment from retirees and advocates pressing the council and administration for clarity and payment, and comes as the council and the administration continue talks with the city pension system, the General Employees Retirement System (GERS), and with the retirees’ organization that has been pressing for broader beneficiary coverage.

Why it matters: Council members and many public commenters said restoring the $400 benefit and settling retroactive payments is an urgent matter for retired city employees who say they depend on the benefit. Council members described the item as their No. 1 legislative priority for 2025 and scheduled follow-up briefings: a special council meeting Feb. 18 will include a legal closed-session update, and the regular Feb. 18 meeting will include a presentation from GERS representatives.

What council did and why: At the start of the meeting Council President McGuinness read a resolution formally identifying five legislative priorities; the first named was "satisfactorily concluding the update to the city retiree settlement agreement with the $400 monthly benefit being restored for all eligible city retirees and the cumulative monthly amounts retroactively paid from when it was previously halted." Council approved the resolution unanimously.

Public commenters who identified themselves as retirees or retiree representatives told the council the settlement process has dragged on. At least two commenters referenced actuarial reports and fund balances and urged the council to finalize an agreement; one speaker, Claudia Phillip, noted actuaries’ reports the retirees said they had provided to the city and described retirees’ uncertainty and hardship.

Administration and legal posture: Mayor Grama and city staff told council they are working with GERS and the retirees’ representatives (identified in the record as CIPRIA) to clarify an outstanding question that arose when CIPRIA sought to expand the benefit to include beneficiaries as well as retirees. Administration officials said state law and the city charter require an actuarial cost study before any enhancement of benefits can be approved; they said the actuary is preparing cost figures but the beneficiary question must be resolved to complete that work.

Council reaction and next steps: Council members said they want the actuarial work completed and the parties to reconcile differences so the matter can be resolved swiftly. Council agreed to a Feb. 18 special meeting (5 p.m., closed session) for legal updates and to invite GERS for a public briefing at the regular Feb. 18 meeting. Separately, during the same Feb. 4 meeting council voted to affirm that unused earned sick time for employees under council jurisdiction (the clerk’s and council offices) shall be paid out; that motion passed 7–0 after public and council comments.

What remains unresolved: How the settlement will treat beneficiaries (survivor or spouse coverage) versus retirees only, the final actuarial cost numbers, and the timetable for any court or administrative steps needed to effect the retroactive payments. Council and administration said they expect more details from the actuary and GERS in the coming weeks.

Ending: Council members emphasized that settling the retirees’ issue is the council’s top policy priority for the year and said they will press for timely actuarial numbers and follow up briefings; the council set Feb. 18 for additional updates from counsel and GERS.