The Michigan Court of Appeals has upheld a law that requires teachers and public school employees to pay more for their retirement health and pension benefits.
The law was challenged by teachers’ unions, which say it illegally changes public school employees’ contracts without their consent. The 2012 law requires teachers to pay more for their benefits, accept lower retirement health and pension benefits, or move into a defined contribution 401 (k) plan. The law has been a big tension point between teachers’ unions and the Snyder administration.
Gov. Rick Snyder’s administration says it was a necessary measure to get a handle on long-term retirement costs. The administration says it reduces unfunded liabilities by $15 billion, and makes the system more stable.