Changes coming to Sturgis retirement benefits

Future city of Sturgis employees will have new pension rules designed to reduce the city’s future pension costs.
Under the proposed amendment to city ordinance, new hires beginning Jan. 1 will have to work 10 years, rather than the current eight, to be vested in the municipal retirement plan.
In addition, the city is expected to begin requiring all new employees to be at least age 55 with 25 years of city service to be eligible for retirement health-care benefits. If they choose to retire at age 60, they must have at least 10 years of credited service; or at least five years of service if they retire at age 65 or later.
The proposed changes are part of a strategy designed to help hold the line on and reduce the city’s multi-million dollar future retirement fiscal liability, city officials said.