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Politics & Government

Rep. Lipton, Sen. Gregory Lose Retiree Health Care Coverage

Two local state legislators affected by new law restricting benefits; Sen. Pappageorge exempt because of seniority.

State Sen. Vincent Gregory, whose district includes Huntington Woods, and Rep. Ellen Cogin Lipton, whose district includes Huntington Woods and Berkley, are cut off from Michigan government retiree health insurance under a law cancelling that benefit for most current legislators and all future ones.

Sen. John Pappageorge, a veteran lawmaker whose district includes Berkley, qualifies for the retirement coverage benefit already and won't lose it.   

Gov. Rick Snyder on Tuesday afternoon signed a measure ending medical coverage for ex-lawmakers, a 54-year-old benefit that cost about $5.3 million in the last budget year

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"This is an exceedingly generous benefit that is clearly out-of-step with the private sector," Snyder said. "I want to thank both Republican and Democratic lawmakers for acting where previous Legislatures failed to eliminate this costly benefit."

The law's language, resulting from a compromise between the House and Senate, preserves future benefits for members with six years of service by the time this session ends Jan. 1, 2013. Senators voted 37-1 in favor of that bill Oct. 5 and the House went along a day later in a 96-11 vote.

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Lipton, a second-term representative, took office in 2009. Gregory, who also came to the Legislature that year as a House member, started a four-year Senate term in January and also will have just four years of Lansing service by the cutoff.  

Sen. Pappageorge came to the Legislature in 1998 as a House member. About four dozen other legislators will have enough seniority to keep medical coverage once they turn 55, according to The Associated Press. When an ex-lawmaker becomes eligible for Medicare, the benefit expires or is good only for supplemental coverage.

Rep. Marty Knollenberg, a Republican representing Troy and Clawson, told the Detroit Free Press that he preferred ending the "ridiculous perk" for everyone, but considers the compromise a worthwhile move.

Language passed earlier this year by the House would have limited the benefits to those who became qualified participants in the system before Jan. 1, 2007. The vast majority of current lawmakers would not have been eligible under that plan.

Members of the Michigan Legislature receive a base salary of $71,650 per year, the second-highest level after California.

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