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One Court of Justice Blog

Jul 2017
July 20, 2017

COA determines that public school employees are required to be deemed totally and permanently disabled by an independent medical advisor to receive disability benefits

In Escott v. Public School Employees’ Retirement Board, No. 333264, the Court of Appeals determined that the Public School Employees’ Retirement Board (“PSERB”) has no authority to grant non-duty disability retirement benefits to a public school employee unless and Independent Medical Advisor has deemed the employee totally and permanently disabled.

Jun 2017
June 12, 2017

MSC grants mini-oral argument to clarify the retroactive application of Executive Order 225 to retiree benefit contributions

The Michigan Supreme Court is not quite done with its analysis of the retroactivity of Order 225.  The Court again granted mini-oral argument in Board of Trustees of the City of Pontiac v. City of Pontiac, No. 154745, to address whether (1) the Court of Appeals correctly applied the findings in LaFontaine Saline, Inc. v. Chrysler Group, LLC, 496 Mich 26 (2014) to Order 225; (2) whether LaFontaine prohibited the retroactive application of Order 225 to the trust; and (3) if LaFontaine does not apply, whether Order 225’s retroactive modification of the 2011-2012 fiscal contribution to the trust is impermissible under the Michigan constitution.  This decision could have an impact on the application of Order 225 retroactively to a wide-range of obligations and claims.

Apr 2017
April 21, 2017

COA held vested retirement rights may not be altered without the retiree’s consent

In Kendzierski v County of Macomb, No. 329576, the COA held vested retirement rights may not be altered without the retiree’s consent. The COA held the trial court properly determined retirement rights had vested, however had erred by determining that defendant may reasonably modify the scope and level of the healthcare benefits without plaintiffs’ consent.

Feb 2017
February 08, 2017

MSC grants leave to appeal as to whether percentage allocation of premium contributions is a mandatory subject of bargaining

In Shelby Township v Command Officers Association of Michigan, No 323491, the Michigan Supreme Court granted leave to appeal to address bargaining requirements related to public employees’ contributions to medical benefit plans pursuant to the Publicly Funded Health Insurance Contribution Act and the Public Employment Relations Act. The Publicly Funded Health Insurance Contribution Act, MCL 15.561 et seq., limits how much public employers may pay toward healthcare costs for employee medical benefit plans.  

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