A Modern, Flexible, Fair, and Financially Responsible Proposal to Replace the Failed April 17, 2023 Plan
For decades, the Troy Fire Department was one of the strongest and most professional volunteer fire systems in Michigan. Residents consistently praised its reliability, its depth of experience, and its ability to respond quickly and effectively.
A major part of that stability came from a service-credit retirement system, a predictable, inflation-protected, survivor-benefit-supported structure that rewarded long-term service and kept experienced firefighters in the department for decades.
That stability was destroyed in 2023 when the City eliminated the system based on a claim that an IRS letter required it to be shut down. Today, we know that was not true.
🔥 The IRS Letter Never Existed and the Public Was Misled
The retirement system was eliminated because the City told firefighters and the public that the IRS had sent a letter stating it had to be shut down. But after months of FOIAs, internal reviews, and public pressure, we now know:
There is no IRS letter. It never existed.
Some council members at the time either:
- knew there was no such letter, or
- relied on “plausible deniability” and chose not to verify the truth before voting on a decision that affected hundreds of families.
This misinformation became the basis for one of the most damaging decisions in Troy’s recent histor, a decision still harming the fire department today. But the landscape has changed.
Three of the seven current council members were not on the council when that decision was made.
They had nothing to do with the misinformation, the rushed vote, or the consequences. With new leadership and growing momentum, the City finally has the opportunity to correct a serious mistake and rebuild the department. And for the first time since 2023, there is growing support on council, to restore stability through a modernized retirement structure.
🔥 April 17, 2023: A Flawed Plan Forced Through, And No Fixes Since
On April 17, 2023, the City rushed through a milestone-based lump-sum payout plan to replace the old system.
It was adopted:
- without proper actuarial analysis
- without long-term modeling
- without understanding consequences
- without evaluating impacts on retention or readiness
And since that day:
⚠️ No meaningful change or improvement has been made.
Not one.
The City has not:
- fixed retention
- restored survivor benefits
- added inflation protection
- addressed experience loss
- offered a way to retain firefighters past age 55
- reviewed the June 2023 payout distortions
- presented a long-term plan
- taken steps to prevent collapse of the volunteer model
The April 17 plan failed, and the City has allowed it to fail for nearly three years. The time for meaningful fixes is now.
🔥 Growing Council Support for a Real Solution
For the first time since 2023, multiple council members are signaling a willingness to rebuild Troy’s fire service retirement system, and address the retention crisis head-on.
This growing support is based on recognition that:
- the volunteer model is at risk
- retention is collapsing
- experience is disappearing
- public safety is being compromised
- the misinformation about the IRS letter must be corrected
- the April 17 plan did not solve the problem
- the City cannot wait another year
This is the strongest opportunity Troy has had in years to restore confidence and rebuild the department.
🔷 1. A Modernized Service-Credit Retirement Formula
Rather than locking in a dollar amount prematurely, this proposal uses a value placeholder to be finalized by actuarial review.
This ensures the final system is fair, sustainable, and financially grounded.
Key components of the restored system:
- Benefits begin at age 55
- Higher benefit option at age 60
- CPI inflation indexing
- Survivor benefits (restoring what the old system provided)
- Stable lifetime income, not volatile lump-sum payouts
- Benefits calculated as a dollar amount per year of service
This structure mirrors successful public-safety retirement systems nationwide.
🔥 A Huge Retention Breakthrough: Start Collecting at 55 Without Leaving the Department
This is one of the most powerful retention tools in the entire proposal, and something even the old system never allowed. Under this plan, firefighters who:
- have 10 years of service
- are age 55
may begin collecting their benefit while continuing to serve. This solves the destructive “55-year cliff” that has plagued the department for decades. It means:
- firefighters no longer have to quit to receive what they’ve earned
- experienced members can stay active and collect simultaneously
- stations keep their leadership and institutional knowledge
- the City retains the very experience it claims to value
- turnover and training costs drop dramatically
This one reform alone stabilizes the department more than any proposal since 2023.
🔷 2. Higher Benefit at 60: Flexibility for Firefighters and the City
Delaying collection until age 60 produces a higher monthly benefit, similar to Social Security. This gives flexibility, not penalties.
For firefighters:
- start at 55 if you need it
- or wait until 60 to maximize your benefit
For the City:
- retirements become predictable
- the workforce stays more experienced
- budget pressures spread over time
- fewer gaps in staffing
This dual-option system benefits everyone.
🔷 3. Option B: Take Your Next Milestone, Then Transition In
Because firefighters were already forced to make life changing financial adjustments once, and changing to a new plan would potentially force them to do that again, we build in the ability to protect firefighters who financially planned around milestone payouts:
- A firefighter may take their next scheduled milestone
- Immediately afterward, they enter the service-credit system
- Their benefit is adjusted proportionally
This:
- prevents double-paying
- respects past commitments
- provides personal financial choices
- supports a smooth transition to a sustainable system
- benefits the city financially
🔷 4. Fairness Adjustment: Net Present Value Offset for June 2023 Payouts
To prevent double payment and maintain fairness:
- Anyone who received a June 2023 payout has their future benefit reduced by the Net Present Value (NPV) of that payout.
This ensures:
- accurate accounting
- fairness between members
- no duplication of benefits
- actuarial integrity
This is the industry-standard way to rebuild a disrupted retirement system.
🔷 5. Fixing Retired Firefighters Who Received “Pennies on the Dollar”
One of the most unjust outcomes of the April 17 plan was the treatment of retirees. Some firefighters with 20, 25, or 30 years of service received payouts that were a tiny fraction of the value they earned.
This proposal fixes that by:
- restoring their service credit
- enrolling them into the new system
- adjusting for the prior payout via NPV
- restoring lifelong benefits
- honoring their decades of service
They do not need to return to serve (but they can if they want). Their earned benefits are restored fairly and responsibly.
🔷 6. Rebuilding the Department: Retention, Return, and Recruitment
This proposal directly addresses the failures of the April 17 plan.
Retention
- collect at 55 without quitting
- higher benefits at 60
- survivor benefits restored
- CPI indexing
- predictable lifetime income
- stability that encourages long-term service
Return of Former Firefighters
Many left after the system was eliminated.
This plan:
- brings them back
- restores their service credit
- rights the wrongs of 2023
- immediately improves department experience
Recruitment
A real, stable system makes Troy competitive again. The milestone system does not.
🔷 7. Why This Plan Saves the City Money
This plan is fiscally responsible because:
- Benefits are spread over time, not paid in massive lump sums
- Retention reduces turnover, burnout, and training costs
- A stable volunteer system saves $18 to 25 million annually vs. a full-time fire department
- NPV offsets prevent double payments
- Predictable budgeting supports long-term planning
This is a more sustainable system than the current model.
🔥 The Moment for Real Reform Is Right Now
After nearly three years of inaction:
- the IRS letter was proven not to exist
- the April 17 plan has failed
- firefighters have left in record numbers
- public safety is at risk
- morale is at crisis levels
- and now, for the first time, there is growing support on council to fix this
This modern Service-Credit Retirement System is:
✅ Transparent
✅ Fair
✅ Flexible
✅ Actuarially grounded
✅ Sustainable
✅ Designed for retention AND recruitment
✅ Built to rebuild trust and restore stability
Troy cannot wait another year.
This is the path forward.
This is how we rebuild the Troy Fire Department.
This is how we restore the trust that was broken on April 17, 2023.