If a judge’s ruling stands, state workers would no longer have to fork out four-percent of their salaries to keep their pensions. An Ingham County Judge says the policy is effectively a pay cut, and only the Michigan Civil Service Commission can set state worker compensation.
“The Legislature, nor the governor can cut our pay,” says Ray Holman, who represents UAW Local 6000, the largest state employee union in the state. “That’s what had happened. And that’s why it feels really good to win in court today.”
The ruling only applies to people who started working for the state before it switched to a 401k in 1997. Holman says that accounts for a little less than half of his union, which has a total workforce of about 17,000 state employees.
The Snyder administration says the four-percent contribution guarantees they can keep post-retirement promises by saving the state billions in long-term liabilities. An appeal is likely.