Pensions

Judge Joyce Draganchuk of Ingham County has ruled that a 2011 law requiring members of a state employee pension fund to contribute 4% of their pay toward the fund is unconstitutional. Judge Draganchuk wrote that Public Act 264 infringed on the constitutional authority of the Michigan Civil Service Commission to set compensation for state employees: “By mandating that members contribute 4% of their compensation to the employees’ savings fund, the Legislature reduced the compensation of classified civil servants -- an act that is within the sphere of authority vested in the Civil Service Commission.” The decision, likely to be challenged by the state, had been expected to save the state $5.6 billion in long-term liabilities and ensure “the post-retirement promises made to our employees can be kept.”