Michigan Supreme Court to hear appeal in school employee pension case
By Paul Egan, Detroit Free Press | |
McClatchy-Tribune Information Services |
In January, a three-judge panel of the appeals court upheld a 2012 law that requires public school employees to pay more for their pensions and made veteran teachers contribute to their pension benefits for the first time. That ruling upheld a 2012 decision by an
The law, backed by Gov.
Under the law, school employees hired before 1990 -- who were paying nothing toward retirement -- must contribute 4% of their pay or have their benefits cut. Those hired from 1990 to
Those hired since the middle of 2010 are in a 401(k)-type pension plan and aren't affected by the law.
In 2012 lawmakers also ended employer-provided health care for new hires, and instead gave them a match of up to 2% in their 401(k), plus a lump sum upon retirement to pay for health insurance. Current retirees must pay at least 20% of their medical premiums.
The appeals court said the law doesn't violate a
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