RETIREMENT LAWSUIT

There have been several inquiries from members regarding media reports of the state refunding the 3% retirement contribution. The refund does not apply to public school employees. MEA initiated litigation on behalf of public school employees challenging the constitutionality of the 3% retirement contribution. That lawsuit remains pending in the Michigan Court of Appeals. A separate lawsuit was filed by state civil service employees challenging the 3% contribution under a provision in the Michigan Constitution dealing with the authority of the Civil Service Commission to establish the wages and benefits of classified civil service employees. The Michigan Court of Appeals ruled in favor of the employees based upon the civil service provision of the Michigan Constitution. The state sought to appeal that decision to the Michigan Supreme Court, but this week the Michigan Supreme Court voted not to hear the case. Legislation was recently passed that was signed by Governor Snyder yesterday that provides for the return of the 3% contribution made by state employees, but which also requires state employees to make a choice whether to continue in the defined benefit retirement plan and pay an additional 4% contribution or to move to a 401(k)-type defined contribution plan.

 

The MEA sponsored litigation, which is entitled, McMillan v Michigan Public School Employees Retirement System, challenges the 3% retirement contribution imposed on public school employees under various provisions of the Michigan and United States constitutions. We won before the Michigan Court of Claims and the state appealed to the Michigan Court of Appeals. Oral arguments were heard by the Court of Appeals on October 19, 2011, and we are awaiting a decision from the Court of Appeals. The decision in the state civil service employees case does not impact our case, because the civil service provision of the Michigan Constitution does not apply to public school employees.

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The GREA represents over 1700 teachers and other professionals who work for the Grand Rapids Public Schools. We are affiliated with the Michigan Education Association and the National Education Association. Learn more

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