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Washtenaw County CFO outlines fiscal risks and options on reopening pensions and retiree health care
Summary
CFO Tina Gavalier told commissioners that medical renewals and actuarial results have pushed retiree health and pension costs higher; staff recommended gathering updated 2025 actuarial evaluations and following best-practice plan design before any reopening decision.
Tina Gavalier, Washtenaw County chief financial officer, presented a comprehensive briefing on the county’s total compensation, the trajectory of fringe-benefit costs and the fiscal implications of reopening the county’s closed pension (WERS) and retiree health trust (VEBA).
Gavalier told commissioners that total compensation for the county’s budgeted 1,594 full-time-equivalent positions in 2025 was about $207.1 million, with 62% of that for wages and 38% for fringe benefits. She said fringe costs have risen faster than inflation over the last decade and identified active medical premiums, employer retirement contributions and retiree-health contributions as the largest cost drivers.
She highlighted the county’s statutory compliance options under Public Act 152 (the state hard-cap law) after Blue Cross Blue Shield submitted a 2026 renewal that exceeded the PA 152…
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