Judge rejects changes to state retirement system - WNEM TV 5

Judge rejects changes to state retirement system

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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.


Information from: Detroit Free Press, http://www.freep.com

Copyright 2012 Associated Press. All rights reserved.

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