MI SR0037

Public Act 75 of 2010 required Michigan public school employees to contribute 3 percent of their salaries to the Michigan Public School Employees' Retirement System without guaranteed benefit receipt, depositing contributions into an irrevocable trust for retiree health care benefits.

The Michigan Supreme Court and Court of Appeals ruled the 3 percent mandatory contribution requirement violated the U.S. and Michigan constitutions, ordering the collections to end in 2012 and directing refunds with interest.

The state collected hundreds of millions of dollars during the three years the policy was in effect, and the Court of Appeals ordered these contributions be returned to workers with interest.

Governor Snyder appealed the lower courts' decision to the Michigan Supreme Court despite low probability of success, preventing the Office of Retirement Services from issuing refunds and delaying return of over $550 million to educators for nearly five years.

The resolution urges the Governor to abandon the appeal and immediately refund all unconstitutionally obtained contributions with interest to Michigan education professionals.