School Employee Medical Deduction Refund Date Set

Money that was illegally collected from public school employees by the state between 2010 and 2012 will be returned to local school districts next month. State officials say it will be included in the state aid payments that will be transferred to school districts on January 22nd.

The mandatory three percent deduction was established under the Jennifer Granholm administration to help pay for retiree health care benefits during the state budget crisis. It was ruled unconstitutional last week by the Michigan Supreme Court. The 554-million dollars collected has been held in escrow since the deduction law was first challenged. The original measure was replaced by a second law in 2012, which allows employees to opt out.

An informational web page published by the state says the districts will return the money to employees. Interest will be paid. Employees who no longer work for those districts are encouraged to provide updated phone numbers and mailing addresses. You can find more information here.