LANSING, MI – Part of a state plan to save money through changes to Michigan's public school employee retirement system is on hold pending the outcome of a court challenge.
A preliminary injunction granted Monday by Ingham County Circuit Judge James Giddings allows the collection of 3 percent of school employee salaries to start as scheduled later this week.
But Giddings says the money can't be spent and will be placed in a separate account pending the case's outcome.
Teachers' unions have sued to overturn the provision in a new state law requiring employees to pay into a retiree health care fund.
The suit doesn't affect plans for 17,000 school employees to retire this summer with slightly sweetened pensions.