The Michigan Supreme Court today
rejected an appeal that has been in the courts for almost 3 years that
challenged changes made to the public school employees retirement service. The
MEA and AFT maintained that it violated both the Michigan and U.S.
Constitutions.
This law change concerning public
school employee retirement occurred in 2012, now called PA 300, requiring
school employees to pay between 1% to 4% more of their salary to keep the
multiplier at 1.5% or have the multiplier lowered to 1.25%. The MEA and AFT argued that PA 300 was
unconstitutional because it was contrary to statements in Office of Retirement
Services publications over many years. This
new statute changed the retirement benefits in the middle of people’s careers.
A challenge made through the
courts regarding the mandatory 3% deduction to pay for retiree health care
(PA75) made in 2010 is not affected by today’s decision regarding PA 300. The case involving this 3% remains
before the Court. It had been rumored that the courts were holding off on
the decision regarding the retiree health care case pending the decision on the
constitutionality of the PA 300 case.
However, no one seems to say when they expect the PA 75 decision to be
made. This decision will be different
because there is no constitutional mandate for retiree health care subsidies.
(Newly elected Justice Richard
Bernstein did participate in the decision as he was not on the court when the
court).
