Mich. officials to appeal ruling stopping pay deductions to cover school retirees' health care costs

Michigan officials will appeal a ruling that declared unconstitutional a deduction of school employee pay to help pay post-retirement pension health care costs.

The Associated Press: State Of Michigan To Appeal Ruling On School Retiree Health Care Costs
The state will appeal a ruling that declared unconstitutional a 3 percent deduction from school employee pay to support post-retirement health care, Gov. Rick Snyder said Tuesday. Snyder announced the appeal to the Michigan Supreme Court after signing a bill that will mean higher costs for most of Michigan's nearly 475,000 public school employees and retirees. Snyder says the new law protects the pension plan for the long term (9/5).

Detroit Free Press: State Of Michigan To Appeal Ruling On School Retiree Health Care Costs
The state will appeal a ruling that declared unconstitutional a 3 percent deduction from school employee pay to support post-retirement health care, Gov. Rick Snyder said Tuesday. Snyder announced the appeal to the Michigan Supreme Court after signing a bill that will mean higher costs for most of Michigan's nearly 475,000 public school employees and retirees. Snyder says the new law protects the pension plan for the long term. In a 2-1 opinion in August, the Michigan Court of Appeals said a 2010 law that cut 3 percent from the pay of school employees impaired contracts and took private property without compensation or due process. The ruling could result in refunds of about $508 million being held in escrow (Egan, 9/5).