HomeHealthHealth CareEast Lansing releases value of George Lahanas severance package

East Lansing releases value of George Lahanas severance package

EAST LANSING — Officials said the divorce agreement with former city manager George Lahanas signed into law by the city council this week, the city is expected to cost about $383,000, though that amount is likely to rise due to the city’s commitment to pay for five years of health insurance for him and his family beginning in 2031 .

The total includes annual wages, $172,896, payable in a lump sum by next month, and health benefits through February 2024. It also includes accrued paid time off of $46,035, which is common among city employees. policy, East Lansing Acting Human Resources Director Ben Dawson said in a statement.

Dawson said officials have estimated the annual cost of health care, dentistry and life insurance at $24,172 based on current rates. This will be “quite accurate” for the 12 months, as plans are typically negotiated and contracted at a flat rate in line with the fiscal year, he said.

He acknowledged health costs for the five years after Lahanas, 52, turns 60 to bridge the gap until he becomes Medicare eligible at age 65.

“Since this is a future liability and will be subject to health care costs at the time it is used, we cannot give an exact future value,” Dawson wrote.

The city also pays a one-year service credit from the Municipal Employees Retirement System towards Lahanas’ pension, which is estimated to be approximately $21,000. Lahanas served the city for 24 years.

Other benefits included in the original city manager contract including a $300 monthly car allowance and internet allowance. Those two fees end next month, Dawson said.

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The East Lansing City Council voted Tuesday night to fire Lahanas and hire former East Lansing fire chief Randy Talifarro as interim city manager. At that time, the city did not release the full cost of the severance payment.

Talifarro will be paid at a rate of $180,000 per year.

East Lansing Mayor Ron Bacon wouldn’t be specific about why Lahanas was suddenly replaced, only saying the city council was ready to move in a different direction.

Lahanas said in a statement to the State Journal that he has appreciated the opportunity to serve the East Lansing community over the past 24 years, including 11 as city manager.

“I am proud of our many remarkable achievements, including downtown development, financial sustainability, infrastructure improvements and increased citizen engagement,” he wrote. With that, I move on to other opportunities.”

Contact Bryce Airgood at 517-267-0448 or bairgood@lsj.com. Follow her on Twitter @bairgood123.

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