Pension case goes before high court

A recently enacted bill that phases out the tax exemption for public employee pensions — and whether it violates the Michigan and U.S. Constitutions — is at issue in a case that the Michigan Supreme Court will hear on Wednesday, Sept. 7.

The court will hear In Re Request for Advisory Opinion Regarding Constitutionality of 2011 PA 38 under a Michigan state constitutional provision that allows the Governor or Legislature to ask the Court for an advisory opinion “as to the constitutionality of legislation.”

Gov. Rick Snyder has asked the Court to rule before Oct. 1, the earliest date that any of the act’s provisions will take effect.

Opponents of 2011 PA 38 argue in part that the bill violates the Michigan Constitution because it reduces the pension income that public sector retirees have already earned.

The bill’s supporters contend that the state Constitution does not create a permanent public pension tax exemption and that the bill is consistent with the Legislature’s power to tax.

The court will hear oral arguments in its courtroom on the sixth floor of the Michigan Hall of Justice, starting at 10 a.m.

The court’s oral arguments are open to the public.

The argument will also be broadcast live on Michigan Government Television (mgtv.org). MGTV will replay the oral argument at noon.
 

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