Thursday, August 16, 2012


1) Regarding the 3% deduction from your checks over the last two years – the supposed “Retiree Healthcare Contribution (now being held in escrow)

This afternoon, the Michigan Court of Appeals by a 2 to 1 majority has found the 3% retiree health contribution to be unconstitutional under both state and federal constitutions. The
majority holds that the exaction of the 3% unconstitutionally impairs a contract between the state and MPSERS members, constitutes an unconstitutional taking of property without just compensation, and violates substantive due process of law. There is a dissenting opinion by Judge Saad.

Of course, the state, through the Attorney General, no doubt will appeal to the Michigan Supreme Court. The state has 42 days to file an Application for Leave to Appeal with the Supreme Court. In the meantime, the escrow will continue until a final decision is reached.

Once MEA Legal Services has had an opportunity to carefully analyze the Court’s opinion, we will advise what impact it has on the legislation just passed by the Legislature yesterday.

2) Regarding the "Protect Our Jobs" Petition Lawsuit Against the State Board of Canvassers

The Michigan Court of Appeals has wasted no time in scheduling arguments in the POJ lawsuit
against the State Board of Canvassers. The Court of Appeals has just issued an order requiring a response from the Board of Canvassers to the arguments made on the POJ brief by the close of business next Monday, August 20; any reply from POJ must be filed by the close of business on Tuesday, August 21; and oral arguments will be heard by the Court of Appeals next Wednesday, August 22, at 10 a.m. in Lansing. POJ also filed a request with the Michigan Supreme Court yesterday to bypass the Court of Appeals due to the time constraints to obtain a decision in time for the proposal to appear on the November ballot. The Court of Appeals process will continue until and unless the Supreme Court decides to grant the motion to bypass.