In a unanimous order issued today, the Michigan Supreme Court affirmed the decision of the Michigan Court of Appeals directing that 3% deducted from pay of Michigan public school employees be refunded to all PreK-14 education educators and those university employees grandparented-in to MPSERS. The Court agreed that the involuntary taking of the money impaired the contracts that set employee wages. The Court directed that the monies taken be refunded to the employees. That process will begin in 2018 and will be carefully reviewed by AFT Michigan.
The ruling applies to money taken under a 2010 law which was in effect from July, 2010 to September, 2012. It does not apply to money which many public school employees agreed to pay (under a 2012 law ) to be eligible for retiree health benefits. Those deductions, which began in the Fall of 2012 for many school employees, will continue for people who approved them.
We know the most pressing question now is when will the money be returned. Lawyers for the unions will directly and actively monitor the process for returning the 3%. The mechanics will be as ordered by the Court of Claims.
Congratulations to all and much thanks to Mark Cousens and the attorneys for the MEA and AFSCME.