State workers win battle over 3 percent contributions to retiree health fund

The Michigan Supreme Court today denied leave to appeal in the dispute between state employees and Michigan State Employees’ Retirement System.

The workers sued to stop the state from taking 3 percent from current workers’ paychecks to fund state retiree health care. In August, the Michigan Court of Appeals said that’s unconstitutional because state employee pay is fixed by the Michigan Civil Service Commission, which did not approve the contributions, which are in essence a reduction in pay, the employee unions argued.

The Court of Appeals opinion stands.

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