Public school employees will have to pay more for their pensions and contribute some of their own money upfront if they want health insurance in retirement, a Michigan appeals court ruled last week.
The 3-0 ruling rejects unions’ arguments that the 2012 law is unconstitutional.
The appellate judges said the law does nothing to diminish workers’ vested pension benefits because only future benefits are implicated. They also ruled that it is legal to have school employees contribute 3 percent of their salary for retiree health care because the contributions are voluntary.
A version of this article appeared in the January 22, 2014 edition of Education Week as Mich. Appeals Court Upholds Teacher-Benefits Law