State to Appeal Ruling Overturning 3% School Payroll Deductions

By: Associated Press
By: Associated Press

Michigan Gov. Rick Snyder has signed legislation requiring public school employees to pay more for their pensions and ending state-provided health coverage in retirement for new hires.
The Republican governor signed the overhaul of the Michigan Public School Employees Retirement System on Tuesday. The GOP-led Senate and House passed the legislation this year.
Officials say the measure cuts at least $15 billion from a $45 billion liability on the system. The reductions include a $130 million contribution by the state toward retirement costs.
At the signing ceremony, Snyder also said he'll appeal an August state Court of Appeals decision that found Michigan's 3 percent payroll deduction for school employees unconstitutional.
The state has collected $508 million since 2010 from 227,000 public school employees to finance retiree health care.


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