Michigan state employees will not be forced to pay 4 percent of their income to participate in pensions, ruled a Michigan Court of Appeals. The decision upholds a lower court ruling from October 2012, and finds the entire 2011 law unconstitutional.
Suggested by legislators as a way to fund the state's pension plans, the law said state employees hired before 1997 would pay a 4 percent fee to participate in the pension. Those who opted out of the payment would be required to move to Michigan's defined contribution plan.
The three-judge panel included Judge Donald S. Owens, Judge Elizabeth L. Gleicher and Judge Cynthia Diane Stephens, who ruled unanimously for the Michigan State Employees Retirement System.
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