Michigan Supreme Court sides with Macomb County in retirees' benefit dispute (2024)

Bill Laitner|Detroit Free Press

In a class-action case involving health care benefits for 1,600 retired Macomb County workers —roughly 400 of whom have died since they filed the lawsuit in 2010 —the Michigan Supreme Court ruled Thursday that the union contracts for theretireesdon't specifically promise “a vested right to lifetime and unalterable retirement health care benefits.”

The ruling reverses a decision by the Michigan Court of Appeals, which sided with the retirees. The split decision fell strictly on party lines, asfour Republican justices sidedwith Macomb County while two Democrats took the side of the retirees.

The case has attracted statewide attention because of its potential impact on the budgets of county and municipal governments, which are now more free to alter retiree benefit levels. Key statewide organizations that represent cities and counties submitted briefs in support of Macomb County’s position.

According to Macomb County's lawyers, no matter which way the lawsuit was decidedthere would always be health care coverage for retired county workers. As evidence, they point to the major bond sale in 2015 that the county is using to fund its retiree benefit costs.

More: Price doubles to fix Macomb County's roads, Hackel says

More: Activist sues Macomb County, prosecutor over search warrant documents

The ruling simply means that the county can make minor changes in thatcoverage without negotiating with unions, officials said. The retirees' argument is that nothing now stops the county from making major changes.

The 25-page majority opinion was signed by four Republican justicesincluding Justice Stephen Markman, who wrote it. The ruling concludes that retiree health benefits expire at the expiration date of each union contract, freeing the county to make changes.

Ina 15-page dissent, written by Chief Justice Bridget McCormack and also signed by Justice Richard Bernstein —both Democrats —McCormack stated that, notwithstanding the words in the county’s union contracts, the retirees’ view “has commonsense appeal: they thought retirement health care was a promise that they would have health care for the period of their retirement.”

After Thursday’s ruling was announced, Macomb County’s top lawyer said the county had “no plan or intention” of reducing retiree health care coverage.

“The court's ruling simply allows the county the flexibility to go to the insurance marketplace to secure the best rates possible while delivering the same retiree health care services well into the future,” Macomb County Corporation Counsel John Schapka said.

The county appealed last year's court of appeals ruling that said the retirees were entitled to the same level of benefits they’d been receiving under more than 30 unioncontracts they'dvoted to ratify. County officials have said that, if the decision had gone against them, it could burden local governments across Michigan with huge unfunded liabilities, as they’d be forced to maintain costly benefit levels and be precluded from negotiating changes in insurance carriers.

The current level of Macomb County retirees’ health care coverage “is, honestly, really quite good,” said Donna Cangemi, president of American Federation of State, County and Municipal Employees (AFSCME) Local 41, which has hundreds of members who work for Macomb County government.

“I thought the county’s changes were pretty minor. But I think these people who fought this believe it was a principle they wanted to defend,” Cangemi said, adding: “I was pretty skeptical that the Supreme Court would rule in their favor” because “they just don’t go the way of labor anymore.”

Cangemi said the retirees failed in theireffort to have Justice David Viviano recuse himself because he had served for years as a Macomb County circuit judge.

During oral arguments for the case in November, Justice Bernstein queried the county's lawyer about whether, hypothetically, the county could simply cut all retiree health care benefits, should it prevail in the case.

"If this court were to hold that this (coverage) is not in fact vested, is there anything to preclude the county from taking away all health benefits, if it so chooses?"

Macomb County counsel Susan Zitterman replied: "Other than its moral commitment and the commitment it's made to the electorate —the people that elect the county officials — there is no contractual requirement that they vest in these retirees the benefits in this contract for the rest of their lives."

Bernstein continued: "The point being…the county could strip all benefits if it chose to, and there wouldbe nothing to prevent that legally. Is that correct?"

Zittterman responded, "Under the contract, I believe that to be the case. But as has happened in every contract that has been negotiated since the 1980s, the benefits will be provided.

"The county has gone to great expenses to get a bond passed to ensure it is fiscally able to do so."

Contact Bill Laitner: blaitner@freepress.com

Michigan Supreme Court sides with Macomb County in retirees' benefit dispute (2024)

FAQs

What are the requirements for a Supreme Court justice to receive full retirement benefits? ›

Retirement Benefits

Age 60 with at least 20 years of service credit. Age 66 with at least 18 years of service credit.

Do state of Michigan retirees have health insurance? ›

When your retirement application is processed, we forward your insurance information to the health, prescription drug, dental, and vision insurance carriers. You should receive insurance identification cards and materials a few weeks after your pension begins.

How many years do you have to serve to get full retirement? ›

The minimum retirement age for service retirement for most members is 50 years with five years of service credit. The more service credit you have, the higher your retirement benefits will be. There are three basic types of retirement: service, disability, and industrial disability.

What is the age limit for the Supreme Court? ›

The Constitution does not specify qualifications for Justices such as age, education, profession, or native-born citizenship.

Do retirees pay state income tax in Michigan? ›

Yes, but it's complicated. In tax year 2023, Michigan began a four-year phase-out of its retirement income tax. By the 2026 tax year, pensions and income from 401(k) and IRA withdrawals will be fully exempt from state income tax. In the meantime, you may qualify for tax relief depending on your age or occupation.

How many years do you have to work for the state of Michigan to retire? ›

You will qualify for full retirement at age 60 with at least 10 years of service (YOS), or age 55 with 30 YOS. (Exception: If you are an unclassified legislative branch, executive branch, or judicial branch employee, you are vested for a full retirement benefit at age 60 with 5 YOS.)

What type of medical insurance do most retirees have? ›

Medicare. Medicare is a federally funded insurance program for eligible participants 65 or over.

What do Supreme Court justices do after retirement? ›

Any retired Chief Justice of the United States or Associate Justice of the Supreme Court may be designated and assigned by the Chief Justice of the United States to perform such judicial duties in any circuit, including those of a circuit justice, as he is willing to undertake.

What are the requirements for a federal judge to retire? ›

Code, Section 371(c). Beginning at age 65, a judge may retire at his or her current salary or take senior status after performing 15 years of active service as an Article III judge (65+15 = 80).

Do federal judges get their salary for life? ›

Any justice or judge of the United States appointed to hold office during good behavior may retire from the office after attaining the age and meeting the service requirements, whether continuous or otherwise, of subsection (c) and shall, during the remainder of his lifetime, receive an annuity equal to the salary he ...

Are Supreme Court justices required to retire? ›

Supreme court justices may be appointed for a term of years, have a mandatory retirement age, or given 'life tenure' with a mandatory retirement age. Mandatory retirement age ranges from 60 – 75 years. Judges serving on constitutional courts usually serve a single 7 – 12-year term.

References

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Roderick King

Last Updated:

Views: 5581

Rating: 4 / 5 (51 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Roderick King

Birthday: 1997-10-09

Address: 3782 Madge Knoll, East Dudley, MA 63913

Phone: +2521695290067

Job: Customer Sales Coordinator

Hobby: Gunsmithing, Embroidery, Parkour, Kitesurfing, Rock climbing, Sand art, Beekeeping

Introduction: My name is Roderick King, I am a cute, splendid, excited, perfect, gentle, funny, vivacious person who loves writing and wants to share my knowledge and understanding with you.