Politics
12:27 pm
Thu January 19, 2012

Michigan state workers getting 3 percent health fee returned

LANSING, Mich. (AP) - Nearly 50,000 state workers are getting refunds on the 3 percent they've been paying for a year toward retiree health care costs.

State budget director John Nixon estimates a worker making $50,000 a year will get back about $1,500.

Gov. Rick Snyder signed bills last month agreeing to refund the money after courts ruled the fee unconstitutional. The money was being returned Thursday.

Workers can choose to receive the refunds in their paychecks or as a deposit into their 401(k) or 457 retirement accounts.

A similar 3 percent contribution being paid by teachers toward their retiree health care costs is not being refunded.

State employee unions had contested the fee, saying only the Civil Service Commission could impose it. Unionized and nonunionized workers will receive the refund.