Law
4:33 pm
Wed August 14, 2013

Appeals court rejects law requiring 4% pension contribution for some state workers

The Michigan Appeals Court Wednesday struck down a law that requires some state workers to contribute toward their pension plan.      

In 2011, Michigan lawmakers passed a law that would require state workers hired before 1997 to pay four percent of their compensation into the pension system.

But the appeals panel says those changes are unconstitutional because only the state Civil Service Commission can change state employees' compensation.

"I would hope the administration would take a serious look at the position we've taken, the rulings we've been granted, and maybe consider not moving forward with any kind of appeal, says Ken Moore, president of the Michigan State Employees Association.

Moore says the pension requirement would have cost workers an average of $3,000 annually.

"It's a fair amount of change for anybody in my world," Moore says.

The ruling does not change the state's 401(k)-style plan.