3 Percent Healthcare Deduction [8.17.12]

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This afternoon, the Michigan Court of Appeals affirmed our position and an earlier Court of Claims ruling that the Legislature’s imposition of the 3 percent retiree healthcare deduction from school employees’ paychecks is unconstitutional. The Attorney General is likely to appeal to the Michigan Supreme Court. Until a final decision is reached, the deductions will remain in the escrow account.

This is another victory in defense of our rights and we are confident that we will ultimately prevail and get your money back to you. Unfortunately, as you know, the Legislature yesterday passed SB 1040, which eliminates retiree health care for new hires, while increasing costs for current employees and retirees. Even after we win this lawsuit, we will all be paying more for retirement.

We will continue to provide you accurate information as we get it, and remember, the Supreme Court justices we elect this November will be the ones deciding whether you get your money back or not.

-David Hecker, AFT Michigan President