MPSERS Reform Hits Hurdle in Court

Lawsuits were filed by the Michigan Education Association (MEA) and the American Federation of Teachers - Michigan (AFT) in anticipation of the Governor Rick Snyder’s signing of Senate Bill 1040 (now Public Act 300 of 2012), and earlier this week Ingham County Circuit Court Judge Rosemarie Aquilina issued a restraining order in response.

The new law requires participants to choose whether or not to remain in traditional pension and retiree healthcare coverage and make a 3 percent contribution, or avoid the 3 percent by giving up the health insurance and enrolling in a 401(k)-type plan. According to the Snyder Administration, the law serves to eliminate $15 billion of the $45 billion in unfunded liability in the Michigan Public Schools Employee Retirement System (MPSERS).

The problem is, according to the MEA and AFT, the law requires this decision to be made by participants by October 26^th – far too soon. The restraining order issued by Judge Aquilina prohibits the state from forcing the public school employees to make the decision.

During Tuesday’s signing ceremony, the Governor stated that the Administration would appeal to the Court of Appeals and felt comfortable in their litigation position on the matter. � � o o �0L �cJ quire utilities to generate 25 percent of power from renewable sources by 2025 and the proposal to ensure the state’s home help workers can organize.

posted by PAA Online , Friday, September 7, 2012 11:37 AM
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