Judge Rules State Worker Pension Law Unconstitutional

By: Associated Press
By: Associated Press

LANSING, Mich. (AP) -- A Michigan judge has sided with state employee labor unions that sued the state, saying changes to the funding of the employees' retirement system are unconstitutional.
The Detroit Free Press reports (http://on.freep.com/QAtyQX ) Ingham County Circuit Judge Joyce Draganchuk released an opinion Friday about the law signed last year by Gov. Rick Snyder.
The law requires employees who choose to remain in the state's defined benefit or pension plan to contribute 4 percent of their compensation toward the system. Draganchuk said the law infringed on the constitutional authority of the Michigan Civil Service Commission to set compensation for state employees.
An appeal is expected.
Another law that required state employees to pay 3 percent toward retiree health care was earlier declared unconstitutional for the same reason.


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  • by Marie Formaz-Ruhf Location: Charlotte on Oct 14, 2012 at 07:59 PM
    School employees are also called State employees. However they still have to pay the 3% or forfeit the coverage they would normally have. My question is why is it unconstitutional for only part of the State employees to not have to pay the 3%. I feel that they have been blackmailed into paying it. In regards to David not all school employees are teachers so they don't all make $55,000 a year. A lot of them make over $12,000 less than that. Also the 3% pays for all state employees ins. not for there own ins. I wouldn't have a problem if they were paying toward there own, but it's not.
  • by Name Location: Location on Oct 4, 2012 at 11:03 AM
    I think the opinion was correct. It probably is appropriate and necessary for state employees to contribute to the retirement system. However, the legislature and governor made a run around the Civil Service Commission and did it without their blessing. If they had worked with the Civil Service Commission as the constitution requires, a lot of litigation could have been saved. It should be noted that this opinion doesn't apply to any retirement system except State Employees in the classified service.
  • by David Location: Charlotte on Sep 30, 2012 at 02:09 PM
    Ok lets say a teacher makes 55,000$ a year, so 4% of that would be 2200 a year and thats only 183.00$ a month and thats only 45.00$ a week and thats only 6.00 $ a day. Sound like a car ad or a school trying to get a millage passed how many times have we as taxpayers heard this line from schools and teachers unions? And what do these schools do if they dont get their bonds and mills. passed, they keep at it until it does pass they dont give up. Always asking for more money, oh we need it for our kids. Kinda hipocritecal asking for more and more money and when the time comes to give back its no way from the unions. Maybe we as taxpayers should say no way to the unions and when you brake it down 4% dont sound all that much does it. 6.00$ a day I bet most of the teachers in this state spend more on their lunch then what it would cost them to give 4% into their ret.
  • by paul Location: bilyea on Sep 28, 2012 at 02:54 PM
    rick snyder is so quick with his pen to sign new bills dosen't he have a team to look into this stuff so we don't have to waste the courts time and the taxpayers money maybe rick should flip the bill for all his mistakes!
  • by Steve Location: Dewitt on Sep 28, 2012 at 12:52 PM
    I bet you don't complain about the part time NFL refs getting a pension and benifits....just sayin
  • by feduptaxpayer Location: haslett on Sep 28, 2012 at 10:12 AM
    Aren't all these judges who are ruling against these cost containing measures getting their retirement/health insurance from the state? Seems like a "conflict-of-interest" to be ruling on benefits you yourself will enjoy. Just asking.
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