Court upholds law requiring state workers to pay to pensions

LANSING, MI (AP) – The Michigan Supreme Court has upheld a law requiring state employees to contribute a portion of their pay to qualify for a full pension in retirement.

Justices ruled Wednesday that the 2011 law does not infringe on the Civil Service Commission’s powers because voters did not consider pensions or other fringe benefits to be “compensation” when they ratified the state constitution in 1963.

The 6-1 ruling reversed a 2013 appeals court decision that declared the law unconstitutional.

The law gave veteran employees with pensions a choice: pay 4 percent to stay in the plan or freeze the pension benefit and move to a 401(k).

About 16,000 current state employees hired before April 1997 are contributing to get a full pension. Those hired since then are automatically in a 401(k)-style plan.

We welcome thoughts and comments from our viewers. We ask that everyone keep their remarks civil and respectful. Postings that contain profanity, racist, or potentially libelous remarks will be deleted. We will delete any commercial postings, as well.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s