LANSING, Mich. – Gov. Rick Snyder has signed a law reforming school employee pension costs, according to MLive.
MLive reports that the pension reform law increases the amount retired school employees pay for their own health care costs, caps district pension contributions, and retools health coverage for new school employees.
Supporters say the changes reduce the unfunded liability of the state’s school retirement fund by $15 billion, according to MLive.
Snyder also told MLive that he will appeal a recent court ruling that limits the state from collecting 3 percent of school employee wages to pay for retiree health care costs. While the decision is appealed, the state will continue to collect that money, MLive reports.
SOURCE: MLive, "Gov. Snyder signs teacher pension law, will appeal court ruling on previous, mandated 3 percent contributions," Sept. 4, 2012.
FURTHER READING: Michigan Education Report, “Legislature passes school pension reform," Aug. 16, 2012