State pension changes constitutional?

Jan 31, 2014

LANSING, MI (AP)--   The Michigan Supreme Court has agreed to look at a 2011 law and decide whether it was legal for the Legislature to make significant changes to the state pension system.  

The law requires thousands of state employees to contribute 4 percent of their pay to get full pension benefits.

The appeals court struck down a portion of the law in August, saying only the Civil Service Commission can change compensation, not the Legislature. Unions had sued.

In an order released Thursday, the Supreme Court says it will decide whether the law is constitutional. The law signed by Gov. Rick Snyder gives employees with pensions a choice: pay 4 percent to stay in the plan or freeze the pension benefit and move to a 401(k).