Friday, September 19, 2014

2012 Amendments to Retirement Act Legislation & YOUR 2010 3% payment!

Michael M. Shoudy, General Counsel
Michigan Education Association

Oral argument on the 2012 amendments to the Michigan Public School Employees Retirement Act (Public Act 300) is scheduled to take place before the Michigan Supreme Court on October 9, 2014 during the morning session.  THIS IS NOT THE 3% CASE BASED ON THE 2010 AMENDMENTS TO Michigan Public School Employees Retirement Act (PUBLIC ACT 75).   

The 2012 case relates to elections that members of the retirement system were required to make in 2013.  We lost this case in the lower courts.  After legal arguments on October 9 are presented, the Court officially has until 2015 to render its decision.  However, we are hopeful that a decision will be issued in 2014.

The 2010 case relates to the 3% withheld from wages.  That money is currently being held in escrow by court order.  In that case, we won in the trial court and in front of the Michigan Court of Appeals.  The State of Michigan appealed the decision to the Michigan Supreme Court.  On May 22, 2014, the Michigan Supreme Court issued an order putting this case on hold, stating they wanted to decide the 2012 case first.   While the MEA understands how important the 2010 case is to our members, there is no mechanism to force the Court to decide the case.  We have asked that the Court to expedite its decision regarding the 3%.