PTI Labor Research
 
 
  Power Through Information  
 
 


Latest News - February 2012

February 14, 2012
Michigan unions sue to halt mandated DB-or-DC choice
Source: Pensions & Investments
By: Kevin Olsen

A new Michigan law requiring state employees to either contribute 4% of pay to the $9.1 billion Michigan State Employees' Retirement System, Lansing, or join a defined contribution plan is unconstitutional because the state Legislature overstepped its authority in passing the law, according to a class-action lawsuit filed Monday by a coalition of unions.

According to the lawsuit filed in Ingham County Court in Lansing, the Michigan Civil Service Commission “regulates the terms and conditions of employment of state employees and has plenary and absolute authority in that respect.”

Under the law, signed by Gov. Rick Snyder in December, state workers must pay 4% of pay to remain in the defined benefit plan, with the additional money used to fund the pension liability. If workers opt not to contribute, they would leave the DB plan with their pension level frozen and have to enter into an existing defined contribution plan.

Last year, the unions won a similar case after the Legislature passed a bill requiring a mandatory 3% contribution toward retiree health care.

The coalition consists of Service Employees International Union Local 517M, American Federation of State, County and Municipal Employees Council 25, Michigan Corrections Organization SEIU, Michigan State Employees Association and the International United Auto Workers Local 6000, which represents some state employees.

 

 


Latest News

CampaignWebsites
Deliver your message anywhere, anytime.
Campaign Websites reinforce your campaign message in a format that preserves employee anonymity

More...

Union Awareness Program
PTI Labor Research has been obtaining and analyzing union activity and petitions for over 20 years. We have the largest and most extensive research data in the country which has been utilized by thousands of companies, labor lawyers and consultants.
More...

 

 
 
About Us          |          Services          |          News          |          Clients          |          FAQ          |          Contact Us

© 2009 PTI Labor Research. All Rights Reserved