Court Rules Against Raising Retired State Workers Health Care Contribution

LANSING (WWJ) – A reprieve for retired state workers as the court states that forcing state retirees to pay a part of their health care costs in unconstitutional.

Last year the Legislature and then governor Granholm forced state retirees to pay three percent more toward their health care costs. Now a judge has tossed that out.

(R) State Senator Mark Jansen says, “I disagree, but I’m not the judge, and so, now it’s going back to, kind of, square one and see what can we do to ask more of the employees when it comes to retirement.”

The judge ruled that the three percent retirement health care cost plan, adopted by last years legislation, is unconstitutional.

This decision creates a deeper hole in the state’s budget and a stronger burden on the schools.

Compounding the governor’s growing budget issues,  it looks like the Snyder may have a hard time getting lawmakers to approve his plan to tax pensions.

(R) Senator Rick Jones, “I’ve heard from many constituants who have retired and who have planned on their fixed income and can’t take a hit.”

A straw poll which included 15 of Michigan’s 26  Republican senators show that the Snyder plan to tax pensions might have some trouble.

Comments

One Comment

  1. 3%? says:

    This article couldn’t be more wrong…The ruling was in reference to the 3% salary that CURRENT state employees were being forced to contribute to the “retiree health care trust”. This money was not going towards the health plan (which is in no immediate need of extra money) but was being placed into the general fund…which brought on the lawsuit from the employee unions….

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