- Posted October 02, 2012
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Judge rejects changes to state retirement system
LANSING (AP) -- A Michigan judge has sided with state employee labor unions that sued the state, saying changes to the funding of the employees' retirement system are unconstitutional.
Ingham County Circuit Judge Joyce Draganchuk released an opinion last Friday about the law signed last year by Gov. Rick Snyder.
The law requires employees who choose to remain in the defined benefit or pension plan to contribute 4 percent of their compensation toward the system. Draganchuk said the law infringed on the Michigan Civil Service Commission's authority to set employee compensation.
State budget office spokesman Kurt Weiss says "the law gave clear choices to existing employees" and "the state strongly disagrees" with the ruling.
Another law requiring state employees to pay 3 percent toward retiree health care was declared unconstitutional for the same reason.
Published: Tue, Oct 2, 2012
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