CHICAGO — In a blow to state pension overhaul efforts, a Michigan appellate panel upheld a lower court decision striking down as unconstitutional provisions in a 2011 law requiring a minimum pension contribution from state employees who want to remain in the state's defined benefit plan.

Under those provisions, if employees opt not to make a 4% minimum contribution they are shifted over to what's known as the tier 2 plan which is structured like a 401(k). The panel also affirmed the Ingham County Circuit Court judge's 2012 ruling that a change in the number of years used to calculate the amount of overtime that could be considered in final average compensation violated the state constitution.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.