Court rules state can continue worker deduction

LANSING (AP) -- The Michigan Court of Appeals has ruled the state can continue to withhold 3 percent of state employees' salary for retiree health care as it reviews a lower court ruling.

The Lansing State Journal reported last week Republican Gov. Rick Snyder is appealing the Feb. 22 Ingham County Circuit ruling that declared the practice unconstitutional. The early retirement legislation was passed in September to reduce state costs.

The money comes to about $60 million a year and is going into an escrow account pending the case's outcome. The state would have to repay employees if it loses the appeal.

The appeals court ruling was issued March 18.

Published: Mon, Apr 4, 2011