Judge rules 3 percent wage hit for teachers' retirement health care is unlawful (Michigan)

M Live ^ | 4/04/11 | Peter Luke

[Libloather]

Judge rules 3 percent wage hit for teachers' retirement health care is unlawful
By Peter Luke
Updated: Monday, April 04, 2011, 4:01 PM

As Gov. Rick Snyder and lawmakers seek to require state and school employees to contribute more for their health care, last year’s efforts to require contributions for retiree health care has hit another judicial road block.

Ingham Circuit Judge James Giddings has ruled that requiring Michigan school employees to pay 3 percent of their wages for health-care coverage in retirement is unconstitutional since the health benefit isn’t guaranteed.

The decision follows a February ruling that found a separate contribution requirement for state employees was also unconstitutional. The Michigan Court of Appeals stayed that decision on March 18, which means the state can continue to deduct the 3 percent from wages. The money is being held in escrow during the litigation.

Gov. Jennifer Granholm, a Democratic-run House and the GOP-controlled Senate approved both measures last May.

The school employee deduction is estimated to generate more than $300 million annually, or more than $3 billion through fiscal 2020. But Giddings on Friday ruled that unlike pensions, retiree health benefits can be reduced or even scrapped by a future Legislature. Therefore, employees are being asked to pay for a benefit they might never receive.

He said school employees “have been given no assurance that they will ever benefit. What is beyond speculation is the undisputed fact that the Legislature has the unfettered power to change or eliminate all benefits.”

[Libloather]

Not to worry - someone else can pay for it.

[dila813]

Obama, bail us out too!

[wbarmy]

Since the Judge seems to imply it is a specious benefit, then get rid of it entirely, let them pay for their own just like I do. They can then keep the 3%.

[johniegrad]

The left’s strategy hasn’t changed in the last forty years. When opposing the will of the people, engage the judiciary appointed by the last leftist. Ignore the legislative process.

[HiTech RedNeck]

Must be nice to be union. Everybody else has to take risks, not us chickens!

[Kaosinla]

Sounds like a 3% pay cut is in order.

[JPG]

Your Honor doesn't seem lofty enough for these magnificent beings. I suggest, Your Majesty, Your Lordship, Your Exalted Ruler, Your Omnipotence...or we can just cut through all the BS and call them what they call themselves ....GOD.

[Recovering_Democrat]

The judges in Michigan and Wisconsin have gone too far. They deserve to be impeached and removed. The judiciary must learn its place.

[Terry Mross]

What will the courts do when the states don’t have any money to pay for anything? Peobably order it be taken from the public. Will this be the straw that broke the patriot’s back?

[verklaring]

"He said school employees “have been given no assurance that they will ever benefit. What is beyond speculation is the undisputed fact that the Legislature has the unfettered power to change or eliminate all benefits.”

The same thing is true of social security and medicare.

[Jean S]

More judicial activism, this time in Michigan.

[OldMissileer]

We MUST find a way to rein in the out of control judiciary.

Our elected representatives do not have the fortitude to impeach them as is their job.

Impeachment is the method put in place to keep judges from becoming tinpot dictators but politicians have allowed them to do so because they can then deny any responsibility for leftist actions they really want because those actions always end up giving government more power.

[sbMKE]

Cut 3% of the workforce effective immediately. Start with the oldest and closest to retirement. Scorched earth is in order.

[Tamar1973]

He said school employees “have been given no assurance that they will ever benefit. What is beyond speculation is the undisputed fact that the Legislature has the unfettered power to change or eliminate all benefits.”

If that argument holds water, than it should also hold water in declaring Soc. Sec. unconstitutional.

[EGPWS]

Sounds like a 3% pay cut is in order.

10% cut for the trouble.

[jrushing]

unconstitutional since the health benefit isn’t guaranteed

Wow. Maybe we can stop paying for Social Security now. It's not guaranteed either.

[Logical me]

Since the Judge seems to imply it is a specious benefit, then get rid of it entirely, let them pay for their own just like I do. They can then keep the 3%.

You beat me to it. Right On! No health benefits. Pay for their own if they want it.

[stylin19a]

What is beyond speculation is the undisputed fact that the Legislature has the unfettered power to change or eliminate all benefits.”

That's true in the private sector also.
no sense in making the judge a liar.
legislature should do it.
Let them get their own coverage.

[sourcery]

So the court ruled that deductions for Social Security and Medicare are Unconstitutional? Wow!

[jenk]

Michigan Ping!