Michigan Schools' Retirement Contribution Raised

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LANSING, Mich. (AP) -- School district officials have been notified that their mandatory contribution to the Michigan Public School Employees Retirement System will increase by about 3.7 percent.

The hike will become effective on Oct. 1.

The increase is due to a restraining order against the state in a lawsuit filed by teachers' unions that stops school employees from paying an additional 3 percent of their pay toward retiree health care.

That's according to an email sent to districts by the state's Office of Retirement Services.

For example, the new retirement rate will cost the Kalamazoo Public Schools almost $700,000.

Kalamazoo Regional Educational Service Agency Superintendent Ron Fuller says the retirement rate increase came as a shock to school officials.

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