State Rep. Bronna Kahle today said she is happy for teachers and other school employees who will receive the portion of their pay that has been tied up in a lawsuit after the Michigan Supreme Court ruled in their favor.
Kahle, of Adrian, said the teachers received an early Christmas present when the court ruled on Wednesday to return $554 million to nearly 275,000 school employees and retirees who saw a portion of their pay deducted for retiree health care for about two years. The legal battle over the money had gone on for six years.
“Teaching a class of children is no easy task, and the people who choose education as a profession deserve to keep as much of the pay they earn as possible,” Kahle said. “I am pleased that this long legal case has come to a close and the teachers and school employees affected will no longer have to stress over the lawsuit. I think their holidays will definitely be happy this year.”
The 3-percent deduction to pay for retiree health care was taken from paychecks between 2010 and 2012.
Kahle said the state budget will not have to absorb the $554 million hit because the money was kept in escrow while the courts considered the case. The refunds, including interest, will be delivered to school districts, which will then distribute it to affected employees and retirees.