Retired Workers Group Argue Tax on Pensions Is Unconstitutional

LANSING – Three organization representing retired workers have joined together in a brief before the Michigan Supreme Court arguing the recently enacted income tax on pensions is unconstitutional.

The State Employees Retirement Association, the National Active and Retired Federal Employees Association and AARP jointly made the argument to the court in an amicus brief.

The Supreme Court has scheduled arguments on September 7 on the tax, which was enacted to help pay for eliminating the Michigan Business Tax and replacing that with a new corporate income tax.

Bob Kopasz of the State Employees Retirees Association Coordinating Council said state worker pensions have been exempt from taxes since 1943 and that was included in the Constitution when it was ratified in the early 1960s.

“The Legislature has no authority to violate the Constitution and tax public pensions,” he said.

Just among the state workers, there are more than 108,000 active and retired workers in two retirement systems, the group said.

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com

a>>