City of Monroe is expecting for a 1.5 million budget deficit next year unless it can trim down costs and expenditures. City Manager George Brown says it will be “extremely difficult to make those adjustments without instituting further employee layoffs and service reductions.”

Due to that reason, the city is evaluating possible alternative cost reductions, such as a pension plan administration proposal from the Michigan Employees Retirement System (MERS). The research is said to be in its early stage but unofficial reports somewhat verifies the plan.

“The city is only in the research phase of looking at the MERS system,” said Councilman Edward Paisley. “Any proposed change to the pension system would be subject to collective bargaining negotiations. The city will take any appropriate steps and do what is right before they jump and take any action. People want to jump to conclusions.”

“During budget work sessions early this year, I told the mayor and council that staff would explore several options, including services from outside vendors such as insurance and pension administration. Among other things, we have been exploring whether our health insurance and pension administration costs could be reduced while providing the same or better benefits, service and performance,” said Brown.

Some of the factors that will be considered take account of pension administration costs, investment performance, security of city pension funds, quality of service for employees and retirees and probable impact on the city’s bond rating.