Last year, Michigan’s then-Democratic governor signed a bipartisan measure requiring Michigan teachers and school administrators to contribute 3 percent of their pay toward their retirement health care benefit. A judge has now found this contribution requirement unconstitutional because the benefit can be changed or abolished at any time by the legislature:
Ingham Circuit Judge James Giddings has ruled that requiring Michigan school employees to pay 3 percent of their wages for health-care coverage in retirement is unconstitutional since the health benefit isn’t guaranteed….Giddings on Friday ruled that unlike pensions, retiree health benefits can be reduced or even scrapped by a future Legislature. Therefore, employees are being asked to pay for a benefit they might never receive.
He said school employees “have been given no assurance that they will ever benefit. What is beyond speculation is the undisputed fact that the Legislature has the unfettered power to change or eliminate all benefits.”
He said school employees “have been given no assurance that they will ever benefit. What is beyond speculation is the undisputed fact that the Legislature has the unfettered power to change or eliminate all benefits.”
I can’t find the text of the decision, but here’s my first question: Is it against Michigan’s constitution for public employees to have payroll taxes deducted?
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