Supreme Court Rules for School Personnel On 3% Issue

The Supreme Court has unanimously held the state wrongly held back 3 percent of public school employees pay, meaning more than $550 million will be returned to school workers.

The order, in AFT v. Public School Employee Retirement System, held the 2010 law that allowed the state to hold 3 percent of the pay for future retirement and health care benefits was unconstitutional. That matches what the court has preciously said about the law, but what had remained unresolved was the fate of the money public school employees contributed before the law became defunct. The state had refused to refund it.

The court said the funds collected under the law “must be refunded to the plaintiffs.”

Gonger News Service will have more on this story in Wednesday’s Michigan Report