|Case Forum:||Michigan Supreme Court|
|Keywords:||contracts, health care benefits, prescription drug benfits, public school retirees, Michigan Constitution|
Dennis B. DuBay | Richard W. Fanning, Jr. | Barbara A. Rohrer | Keller Thoma, P.C. | 26555 Evergreen Rd | Southfield, MI 48076
Michigan Townships Association (MTA)
Healthcare benefits do not fit within the plain and commonly held meaning of a pension. The financial benefits of the pension are defined at the time of retirement, the medical
Michigan Supreme Court:
|MSC requested LDF amicus brief?||No|
The Michigan Public School Employees’ Retirement Board (board) began providing a health care plan for public school retirees in 1975 pursuant to amendments made by 1974 PA 244 to the former Public School Employees Retirement Act, 1945 PA 136, which was the predecessor of the current Public School Employees Retirement Act, 1980 PA 300, MCL 38.1301 et seq. Since that time, participants in the plan have been required to pay deductibles and copays for prescription drugs, and the amounts of the deductibles and copays have gradually increased throughout the years because of numerous amendments the board has made to the plan to reflect the rising costs of health care and advances in medical technology. The present case arises from the two most recent amendments made to the plan by the board. The first amendment became effective on January 1, 2000, and increased the amount of the deductibles that retirees are required to pay. The second amendment occurred on January 21, 2000, and increased the copays and out-of-pocket maximums that retirees are required to pay for prescription drugs. Plaintiffs, six public school retirees, filed suit for declaratory and injunctive relief against the board, the Michigan Public School Employees’ Retirement System (MPSERS), the Michigan Department of Management and Budget, and the Treasurer of the state of Michigan.