2025 Session
Last amended: 1984 session
§ 465.721 — Funding
Plain-Language Summary
No county, city, township, or other local government (except school districts) can start paying severance to employees until the governing body has approved a plan that fully funds the severance obligations.
465.721 FUNDING.
No county, city, township, or other governmental subdivision shall implement a plan for payment of severance pay pursuant to section 465.72 until a plan providing for full funding has been developed and approved by the governing body. This section does not apply to school districts.
History:
1980 c 600 s 9; 1984 c 463 art 7 s 21
History: History: 1980 c 600 s 9; 1984 c 463 art 7 s 21
Practical Notes
Local governments must plan ahead and set aside money before promising severance pay. This prevents unfunded severance liabilities from burdening future budgets. School districts are exempt from this requirement.