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Fri August 17, 2012
Court: Deduction for Health Care Unconstitutional
The Michigan Court of Appeals has ruled unconstitutional a state law forcing school employees to pay 3% of their salary toward retiree health care.
A copy of Thursday's 2-1 ruling was released Friday.
The contribution was put into place in 2010, and unions representing teachers filed suit. In 2011, retired Ingham County Circuit Judge James Giddings, who was hearing the case before he stepped down and returned to finish the job, ruled that school employees were paying into a system that may not ultimately benefit them.
The contribution was instituted as part of an effort to save hundreds of millions of dollars for the state. MLive.com reports some unions want the money to be refunded.