Will school employees see retirement contribution refunds?
Last week’s combination of the passage of SB 1040 and the Court of Appeals ruling that the existing 3 percent employee contribution for retirement health care is unconstitutional is raising questions about whether or not school employees will be seeing a refund of those funds, like state employees already have.
While Gov. Snyder has his legal team studying the Court’s ruling, the Office of Retirement Services is saying the ruling might not have any effect on SB 1040 because it gives employees the option to move into a 401(k) plan and stop paying the 3 percent.
In 2011, an Ingham Circuit Court judge ruled that the 3 percent contribution was unconstitutional because there was no guarantee that any retirement health benefits would be provided. The money was still being collected, but put in escrow until a final ruling had been made.
MEA and AFT-Michigan are calling on the governor and the Attorney General to pay back money withheld from employee paychecks.