LANSING, Mich. (AP) — The Michigan Supreme Court has upheld a law requiring public school employees to pay more toward their pension or get less in retirement.
The court ruled 6-0 Wednesday in the state’s favor, rejecting unions’ arguments that the 2012 law is unconstitutional.
Under the law, school employees hired before mid-2010 had to decide if they wanted to pay more toward their retirement or receive a smaller pension for future years of work. They also must contribute some salary upfront if they want health insurance in retirement.
Gov. Rick Snyder and the Republican-led Legislature enacted the law to cut more than $15 billion from a $45 billion liability in the Michigan Public School Employees Retirement System.
Those hired since mid-2010 are in a hybrid pension/401(k) plan and aren’t affected by the law.