LANSING, Mich. (AP) — State workers hired after Jan. 1 no longer will be eligible to receive state health care coverage when they retire and long-term employees covered by the state's defined benefit pension will have to contribute 4 percent of their pay to keep that benefit under bills signed Thursday by Gov. Rick Snyder.
The changes are expected to save the state $5.6 billion in future decades by cutting its long-term unfunded liability for retiree health care and pension costs by a third, from $14.5 billion to $8.9 billion.
The bills also refund a 3 percent contribution state workers have been paying for nearly a year toward retiree health care costs. Lower courts already had ruled the fee unconstitutional and the Michigan Supreme Court this week let stand the lower court ruling. A similar 3 percent contribution being paid by teachers toward their retiree health care costs is not affected by the new laws.
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