Tagged: retirement

Snyder holds town hall meeting on Prop 6 today

"Governor Snyder will hold a town hall meeting with members of the Canada-United States Business Association in Detroit today. He’ll be stressing the need for a new Detroit-Windsor bridge—and for voters to reject Proposal 6. Proposal 6 would require voter approval for any new international bridges or tunnels for motor vehicles,” Sarah Cwiek reports.

Voters in West Michigan can learn more about Prop 3 this week

"People living in West Michigan will have two opportunities early this week to learn about and discuss the so-called 25 by 25 ballot proposal. If voters pass Proposal 3, utility companies in Michigan would have to get 25-percent of their energy from renewable sources like wind and solar. There’s a panel discussion tonight with people for and against Proposal 3. It’s at the Michigan Alternative and Renewable Energy Center in Muskegon. Tomorrow morning in Grand Rapids the President of the Union of Concerned Scientists will travel from Massachusetts to join west Michigan business leaders in favor of Proposal 3," Lindsey Smith reports.

Some Michigan lawmakers looking to increase retirement age for public school employees

"Michigan lawmakers are looking at a plan that would increase the minimum retirement age for public school employees. The current retirement age is 60. But some people want to index the retirement age according to life expectancy, which would be determined every year. Mark Guastella is with the Michigan Association of Retired School Personnel. He says the system paid more than $700 million in benefits last year to people who outlived their life expectancy," Rina Miller reports.

Thousands of state employees are applauding a judge’s ruling that they shouldn't be forced to pay for their pension benefits.

An Ingham County Circuit Court judge said today that a rule requiring state employees cough up four-percent of their salaries to keep their pensions is unconstitutional.

She said it’s effectively a pay cut, something only the Michigan Civil Service Commission has the authority to enact.

Ray Holman is with UAW Local 6000, the largest state employee union in Michigan.

Governor Rick Snyder will sign legislation into law Tuesday that will make some changes to how teachers and other school employees save for their retirement.
    
School employees will have to pay more for their benefits, and those hired after today will no longer get retirement health coverage.

Instead, they will get savings accounts to help them buy insurance once they are done working.
    
Governor Snyder said he understands that many school employees are upset.

“We had to make some reforms to make it fiscally viable and financially sound f or their future, too, in terms of their retirement benefits," said Snyder. "So, it’s a case of us all working together, and sometimes change is tough on people and I appreciate that. We’re just trying to make it something that lasts for the long term for the benefit of all."

Snyder said the new approach will begin to retire a long-term pension liability estimated in the billions of dollars.

He said it will also shore up the state’s credit rating, and ensure taxpayers won’t be saddled with the costs of a bailout years down the road.
    
Teachers unions say the plan breaks promises made to school employees, and went to court on Friday with a legal challenge.

LANSING, Mich. (AP) - The Michigan Court of Appeals has ruled unconstitutional a state law forcing school employees to pay 3 percent of their salary toward retiree health care.

A copy of Thursday's 2-1 ruling was released Friday.

The contribution was put into place in 2010, and unions representing teachers filed suit. In 2011, retired Ingham County Circuit Judge James Giddings, who was hearing the case before he stepped down and returned to finish the job, ruled that school employees were paying into a system that may not ultimately benefit them.

The contribution was instituted as part of an effort to save hundreds of millions of dollars for the state. MLive.com reports some unions want the money to be refunded.

Some current and former employees will get another chance to pursue a lawsuit against Flagstar Bank over company stock in their retirement accounts.

A federal appeals court has reinstated the case in Detroit federal court. The Troy-based bank is blamed for offering Flagstar stock to employees at a time when the bank was in perilous shape.

Flagstar's stock price lately has been under a dollar, compared with nearly $15 in 2007. The court says the lawsuit raises a "plausible claim" that Flagstar breached its fiduciary duty to employees during that time.

The bank has said workers made their own investment decisions.

Flagstar recently announced its first profitable quarter since 2008. It has 111 branches in Michigan.