LANSING, Mich. (AP) — The AARP and other retiree groups on Wednesday said they will argue before the Michigan Supreme Court that parts of the state's new tax on pensions are unconstitutional, particularly related to public employees.

The retiree groups filed a friend of the court brief on the matter this week. Republican Gov. Rick Snyder's administration says the tax is constitutional and has asked the high court to review it. Oral arguments are scheduled for Sept. 7.

Snyder signed the sweeping tax law in May. The new law will end income tax exemptions for some types of retiree income, including pensions, starting in 2012. Eligibility to continue existing exemptions will be based on when a taxpayer was born and other factors.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.