'They're cutting health care in a pandemic:' Retirees protest at Lansing mayor's house

Sarah Lehr
Lansing State Journal
City retirees and supporters rally across the street from Lansing Mayor Andy Schor's home, Thursday, Oct. 29, 2020, protesting changes to their health care benefits.

LANSING — Close to 100 city retirees protested outside Mayor Andy Schor's house Thursday evening over changes to their health care. 

They carried signs with slogans like "Senior Lives Matter" and "Honor our Contracts" while they shared worries about being unable to pay their bills. 

Effective Jan. 1, Lansing plans to switch health care plans for more than 1,300 retirees who worked both union and non-unionized city jobs to mirror the plans offered to active employees. Lansing's chief restructuring officer says the shift will save an estimated $8 million annually, which will help pay down a fraction of Lansing's unfunded pension and retiree health care costs.

The city has not invested enough money to cover over $730 million in legacy cost payments set to come due over the next several decades. 

Related: Lansing retirees say they were 'blindsided' by city's planned health care changes

Schor, who took office in 2018, did not appear to be home during the protest. The windows in his Moores River Drive house were dark. 

“In the last few weeks, we learned of a plan to kidnap the governor, threats to shoot our congresswoman, and a public call for me to slit my own throat," Schor said in a statement. "I fully support the right of people to make their voices heard and to demonstrate in a reasonable and appropriate manner. However, if people come to my home, I will not engage them."

'We won't be ignored': Protesters push Lansing mayor for action

Schor lives in the same neighborhood as Michigan Gov. Gretchen Whitmer, the target of of an alleged kidnapping plot that was thwarted by the Federal Bureau of Investigation. He also appeared to reference threats against U.S. Rep. Elissa Slotkin, D-Holly, whose 8th District includes Ingham County.

City spokeswoman Valerie Marchand said someone told the mayor to slit his throat during a virtual meeting hosted by Council Member Carol Wood to discuss the health care changes. 

The mayor's house has been the site of multiple protests since this summer, when activists rallied to decry racism and demand defunding of the Lansing Police Department. At times, he's come outside to speak with demonstrators. On other occasions he's appeared to be away or may have stayed inside. 

More: To some of Whitmer's neighbors, protests foreshadowed kidnapping plot

"We have to be able to provide services for Lansing residents and we have to be able to pay pensions for retirees," Schor's statement says. "I inherited hundreds of millions of dollars in unfunded pension and retiree healthcare liability, which grew substantially over the last 15 years. ... I have heard from people who expect services and financial stability in our city and I have heard from retirees who are upset about the mirroring of their benefits to the benefits of current employees. It is my job to listen and do what is best for the City of Lansing."

Lansing officials say Medicare-eligible retirees over 65 will get plans through Humana and those under 65 will get plans through Blue Cross Blue Shield of Michigan or PHP. Lansing will offer a hardship program to retirees with annual taxable incomes under $25,520, officials said. 

More: Schor's predecessor Virg Bernero criticizes city over transparency in jail death

"They're cutting health care in pandemic to one of the most vulnerable groups of people," Sara Morrison, the wife of a disabled former Lansing firefighter, said at the protest. 

Her frustrations were shared by retired police officer Gary Masseau, Jr. who said his co-workers made concessions in their contracts, like foregoing "big raises" with the assurance their health care would be untouched. 

Wood, who's served two decades on the council, acknowledged that the mayor and the council campaigned on addressing Lansing's legacy cost crisis. But, she said, the city should have worked with unions to make reforms.

More: 57 COVID-19 cases linked to Liberty Church in Grand Ledge

"There are very few times when I've been ashamed to be a council member and this is one of them," Wood said.

Lansing retirees protested previously against the health care changes outside City Hall on Oct. 12.

Lansing retirees protest changes to their health care on Monday, Oct. 12, 2020, outside City Hall in Lansing.

Several Lansing unions agreed to give up city-sponsored retiree health care for new hires in their current contracts in exchange for health care savings accounts. Schor and other city officials touted those agreements as one step in denting legacy costs. 

The decision to change retiree health care came unilaterally from Schor's administration whereas bargained contracts are typically approved by the City Council after being negotiated between unions and Lansing's executive branch. 

Lansing's police contracts: Raises, fitness bonus but no retiree health care for new hires

Former Democratic state Rep. Tom Cochran blasted Lansing's move on retiree health care during a City Council meeting Monday, calling the dealings "back room, smoke-filled."

Cochran retired from his role as Lansing's fire chief in 2012. 

"Leadership is hard and tough decisions must be made." Schor said in his statement. "This decision may not be popular with some, but it is what is necessary to help secure the future for the City of Lansing,"

Contact reporter Sarah Lehr at slehr@lsj.com. Follow her on Twitter @SarahGLehr.