Educators file class action suit

Five members of the Michigan Education Association have filed a class-action suit, which “seeks to overturn a provision that requires school employees who don’t retire this summer to start paying an extra 3 percent of their compensation into a fund for retiree health care …” according to the Associated Press.

However, according to the story, the “suit doesn’t challenge a provision that gives slightly higher pension benefits to school employees who retire this summer.”

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Granholm floats early retirement plan to help budget crisis

From the AP:

LANSING, Mich. (AP) — Gov. Jennifer Granholm is proposing a plan to entice eligible state government workers and public school employees to retire. It’s part of an effort to save money for the cash-strapped state.

Granholm spoke about her plan Friday during a speech to the Lansing Rotary Club. It’s one of several priorities for the Democratic governor during her final year in office. She says it could save around $450 million in its first year.

Other changes include a consolidated health care plan open to all public employees.

Granholm will detail more proposals during her State of the State speech and her final budget proposal in early February.

Michigan faces a budget deficit of at least $1.6 billion for the fiscal year starting Oct. 1.