Lansing’s $402M pension problem could become ours

City’s unfunded pension debt continues to grow, even with state help

"The city of Lansing pays pensions to 1,790 former employees, but it lacks a fully funded pension system. 

If the city fails to fully fund its pension obligations, the burden will fall upon future taxpayers, says James Hohman, budget director at the Mackinac Center.

• Lansing’s net pension liability was $402,497,602 as of June 30, 2023, according to the city’s latest annual report. 

That’s the gap between what the city owes the members of its workforce and what it has available (and expects to have available) to pay out...

• Lansing saw an increase in its unfunded liability from 2022, even with an $11 million pension grant from state taxpayers. The city had $371,959,895 in net pension liability back then...