In Michigan
6:24 pm
Wed December 14, 2011

Court won't hear appeal on state worker deduction

LANSING, MI –

The Michigan Supreme Court will let stand a lower court ruling that the state violated its constitution by withholding 3 percent from state employee paychecks and earmarking it for retiree health care.

The court ruling Wednesday was unanimous. It denies a state government request to challenge a Michigan Court of Appeals ruling from this summer.

The case is less urgent because Michigan lawmakers this week approved legislation that calls for the 3 percent deduction to be refunded to state workers. The bill awaiting Gov. Rick Snyder's signature would allow the refund to start next year as part of broader changes to the state retiree benefits system.

It's likely that a similar refund of a 3 percent deduction affecting school employees will be taken up the by Legislature next year.