© 2024 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Judge Says State Workers’ 4% Retirement Contribution is Unconstitutional

WKAR File Photo

State workers would no longer have to fork out four-percent of their salaries to keep their pensions if a judge’s ruling stands.

An Ingham County Judge says the policy is effectively a pay cut, and only the Michigan Civil Service Commission can set state worker compensation.  Ray Holman is with the United Auto Workers Local 6000, the largest state employee union in Michigan.

“(Neither) The Legislature, nor the governor can cut our pay," Holman says.  "And that’s what had happened. And that’s why it feels really good to win in court today.”

In the late 1990's, the state switched new employees to a 401k plan. Holman say that means the ruling applies to fewer than half of the workers in his union. But that still amounts to several thousand people.

State officials will likely appeal the decision.

Jake Neher is a reporter for the Michigan Public Radio Network. He covers the State Legislature and other political events in Lansing.
Journalism at this station is made possible by donors who value local reporting. Donate today to keep stories like this one coming. It is thanks to your generosity that we can keep this content free and accessible for everyone. Thanks!