Whitmer visits West Michigan to discuss pension tax changes

ADA TOWNSHIP, Mich. (WOOD) — Gov. Gretchen Whitmer was once again in West Michigan Thursday, touting what she sees as accomplishments from last year’s whirlwind legislative session that saw Democrats in complete control in Lansing for the first time in decades.

Whitmer, flanked by some of her Democratic legislative partners, spoke with a group of Michigan Education Association members — a group that she says will benefit from the repeal of a tax on pensions that was initiated beginning in 2012.

The repeal, according to the governor, could result in more than 500,000 retired households saving up to $1,000 a year.

“These are people that played by the rules, did what they needed to do, worked a whole lifetime, and retired based on what their income was predicted to be. And all of the sudden, government changed the rules on them,” Whitmer said. “So that’s why this was really important to undo. It was a huge hardship a lot of households in Michigan.”

The governor and others who spoke Thursday said the adjustment will make it easier for retirees with defined benefit accounts to make ends meet and stay in the state.

The plan will be gradually phased in over the next four years and will provide for exemptions on qualified retirement withdrawals, up to a limit for the tax year 2022 of $56,961 for a single return and $113,922 filing jointly.

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