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Michigan
Court Clarifies Principal's True
Employer
MIRS, April 4, 2003
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A private educational services company is not a “reporting unit”
of the Michigan Public School Employees Retirement System (MPSERS),
the Court of Appeals ruled this week. As such, anyone employed
by the educational services company can not be penalized as
working as a public school employee as it relates to retirement
benefits.
The situation arose in Bay County, where Robert MANTEI, a
30-year elementary school principal retired from the district
after the 1996-97 school year. However, for the 1997-98 school
year, he signed an employment contract with Thumb Educational
Services, who hired Mantei to work in the same function at the
same Bay County elementary school.
MPSERS claimed Mantei was still employed by a public “reporting
unit” and that he was required to reimburse the Retirement Board
for that portion of his pension benefits that exceeded the
statutory earnings limitation.
The Court of Appeals in Mantei v. MPSERS (Docket No. 228589)
stated that “As an employee of Thumb, (Mantei) was not `employed
by a reporting unit' of the MPSERS and was not subject to the
earnings limitation of the act. Consequently, he was entitled to
all of the retirement benefits paid to him during the period in
question, without deduction.” |
