Thorny teacher pension case returns to Court of Appeals

Via Detroit Free Press,

By Paul Egan, Detroit Free Press

July 6, 2015

The Michigan Supreme Court has sent back to the Court of Appeals a pension case affecting the possible repayment to Michigan teachers and other school employees of a $552.7-million escrow fund held by the state.

Last week’s order by the Michigan Supreme Court is the latest development in a protracted court case involving union challenges to a 2010 state law that required school employees to contribute 3% of their pay toward retiree health benefits.

It means a final resolution of the case is likely at least several months away.

About 275,000 current and former school employees who had the 3% payments involuntarily deducted from their checks between 2010 and 2012 hope a final resolution of the case is imminent. They also hope it will result in the return of the money, which is now held in an escrow fund that holds enough to pay each of them a check of more than $2,000 — though the actual amounts would vary, with some receiving considerably more and others considerably less.

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