The Michigan appeals court has upheld a 2012 law requiring public school employees to pay more for their pension and contribute some salary upfront if they want health insurance in retirement.
The 3-0 ruling released Wednesday affirms an Ingham County judge's ruling and rejects unions' arguments that the law is unconstitutional.
Under the law, school employees hired before mid-2010 had to decide if they wanted to pay more toward their retirement or receive a smaller pension for future years of work.
The appellate judges say the law does nothing to diminish workers' vested pension benefits because only future benefits are implicated.
The court also says it's OK to have school employees contribute 3 percent of their salary for retiree health care because the contributions are voluntary unlike a 2010 law.