This week, the Michigan Supreme Court issued an order finding that Public Act 75 of 2010 is unconstitutional. Under the law, public school employees had to contribute 3% of their salary for future retiree health care. “This measure was passed during a massive overhaul to the Michigan Public School Employees Retirement System, which at the time faced a large unfunded liability,” explained Brendan Ringlever of MLC.
Due to the Court’s ruling, the state will have to return the contributions to the public school employees who paid the 3%. The funds collected under the law have been held in an escrow account, therefore the state won’t need to find the funds to pay back the employees.
Michigan Legislative Consultants is a bipartisan lobbying firm based in Lansing, Michigan. Our team of lobbyists and procurement specialists provide a wide range of services for some of the most respected companies in America. For more on MLC, visit www.mlcmi.com or connect with us on LinkedIn and Twitter.