The Houghton City Council has approved a new Employee Compensation Plan for city workers.
The plan was designed to meet the requirements of the State of Michigan’s Economic Vitality Incentive Compensation Plan and lays out the city’s intentions for the 2015-2016 union contract negotiations.
The maximum base salary cap on annual employer retirement plan contributions will be reduced from 15.04% to 10% for all new hires.
New employees will be required to pay 20% of their health care premiums or be cost competitive with the new state preferred provider organization health plan on a per-employee basis.
The city of Houghton already meets the requirements for maximum retirement and for Final Average Compensation.
The Employee Compensation Plan is the last of the three segments of the plan for revenue sharing due to the State by May 1st.