The Michigan Supreme Court will soon decide whether the state of Michigan violated the state constitution when it seized $550 million from the paychecks of more than 200,000 public school employees between 2010 and 2012 to help pay for school employees’ retiree health care. If the high court upholds a 2016 Court of Appeals ruling that the money was unconstitutionally seized, these funds, now earning interest in an escrow account, would have to be paid back immediately with interest. If Gov. Rick Snyder wins his appeal, the funds would revert to the Michigan Public School Employees Retirement System.
