THE PUBLIC SCHOOL EMPLOYEES RETIREMENT ACT OF 1979
Act 300 of 1980
38.1343e Member before September 4, 2012; contribution of percentage to funding account under public employee retirement health care funding act; "funding account" defined.
Sec. 43e.
Except as otherwise provided in this section or section 91a, each member who first became a member before September 4, 2012 shall contribute 3% of the member's compensation to the appropriate funding account established under the public employee retirement health care funding act, 2010 PA 77, MCL 38.2731 to 38.2747. Except as otherwise provided in section 91a, beginning in the fiscal year ending September 30, 2026 and each subsequent fiscal year, for each member who first became a member before September 4, 2012, there is no required member contribution under this section. The member contributions under this section must be deducted by the employer and remitted as employer contributions in a manner that the retirement system shall determine. As used in this section, "funding account" means the appropriate irrevocable trust created in the public employee retirement health care funding act, 2010 PA 77, MCL 38.2731 to 38.2747, for the deposit of funds and the payment of retirement health care benefits.
History: Add. 2010, Act 75, Imd. Eff. May 19, 2010 ;-- Am. 2012, Act 300, Imd. Eff. Sept. 4, 2012 ;-- Am. 2024, Act 127, Eff. Apr. 2, 2025
Compiler's Notes:
Enacting section 1 of Act 75 of 2010 provides:
"Enacting section 1. If any section or part of a section of this act is for any reason held to be invalid or unconstitutional, the holding does not affect the validity of the remaining sections of this act or the act in its entirety."
Enacting section 2 of Act 300 of 2012 provides:
"Enacting section 2. (1) If the office of retirement services in the department of technology, management, and budget receives notification from the United States internal revenue service that any section or any portion of a section of this amendatory act will cause the retirement system to be disqualified for tax purposes under the internal revenue code, then the portion that will cause the disqualification does not apply.
"(2) The provisions of this amendatory act are severable. If any part of this amendatory act is declared invalid or unconstitutional, that declaration shall not affect the remaining part of this amendatory act."
PopularName Notes:
Act 300
Notes of Decisions
Aft Michigan v. State of Michigan, 866 N.W.2d 782 (Mich. 2015).
· cites it 25× “The most controversial provision of 2010 PA 75 was MCL 38.1343e, which required all current public school employees to contribute 3% of their salaries to the MPSERS to assist in funding retiree healthcare benefits for current and future public school retirees.”
AFT Michigan v. State, 297 Mich. App. 597 (Mich. Ct. App. 2012).
· cites it 43× “In these three cases consolidated for appeal, plaintiff public school employees and their representative organizations raise various constitutional challenges to MCL 38.1343e. This provision was adopted in 2010 and amended article 3 of the Public *604 School Employees Retirement…”
AFT Michigan v. State, 315 Mich. App. 602 (Mich. Ct. App. 2016).
· cites it 27× “First, it permitted employees hired before September 4, 2012, to opt out of the retiree healthcare system as of the first day of the pay period that would begin on or after February 1, 2013.”
AFT Michigan v. Michigan, 303 Mich. App. 651 (Mich. Ct. App. 2014).
· cites it 8× “Additionally, under MCL 38.1343e and MCL 38.1391a members were asked to opt in or out of retiree healthcare benefits; members could either contribute 3% of their compensation to receive the future benefit, or they could choose to receive no retiree healthcare benefits at…”
Timothy L Johnson v. Pub. Sch. Employees Ret. Sys. (Mich. Ct. App. 2016).
· cites it 24× “Indeed, our Supreme Court has ruled that the Legislature created and may revoke this taxpayer-funded benefit and that retiree health care benefits are not a constitutionally protected contract right, nor a vested right under the Michigan Constitution.”
Timothy L Johnson v. Pub. Sch. Employees Ret. Sys. (Mich. Ct. App. 2020).
· cites it 10× “In these three cases consolidated for appeal, defendants-appellants (“defendants”) appeal and plaintiffs-appellees (“plaintiffs”) cross-appeal a July 24, 2018 order of the Court of Claims, which ordered defendants to pay equitable judgment interest on funds collected under MCL…”
Timothy L Johnson v. Pub. Sch. Employees Ret. Sys. (Mich. Ct. App. 2016).
· cites it 2× “First, it permitted employees hired before September 4, 2012 to opt out of the retiree health care system as of the first day of the pay period that begins on or after February 1, 2013. MCL 38.”
Sally Steele-Brown v. Pub. Sch. Employees Ret. Sys. (Mich. Ct. App. 2016).
· cites it 2× “-1- The most controversial provision of 2010 PA 75 was MCL 38.1343e, which required all current public school employees to contribute 3% of their salaries to the MPSERS to assist in funding retiree healthcare benefits for current and future public school retirees.”
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