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Polites v Flint Public Schools 3.03

Section 27(f)

PENSION OFFSET, Cost of benefit, Employee contribution

CITE AS: Polites v Flint Public Schools, 132 Mich App 609 (1984).

Appeal pending: No

Claimant: James R. Polites

Employer: Flint Public Schools

Docket No: B79 02190 66513

COURT OF APPEALS HOLDING: Claimant contributed less than half the cost of the retirement benefit. The determination of whether claimant's benefits are to be subject to reduction under Section 27(f) focuses on the amount of claimant's contribution towards the cost of the benefit not a comparision of what claimant contributed to the employer's contribution.

FACTS: Claimant was employed by respondent school district as a teacher for approximately 23 years, retiring July 1, 1978. During his employment claimant contributed $14, 615.13 to this retirement fund, while respondent contributed $3,223.80. Contributions to claimant;s retirement fund were also made by the State of Michigan. Claimant's monthyly retirement benefit consisted of an annuity funded entirely by claimant's contribution which paid claimant $31.13 monthly and a pension benefit of $533.45 monthly funded entirely by the employer and the State of Michigan.

DECISION: Claimant's weekly benefit rate was properly subject to adjustment under Section 27(f).

RATIONALE: "... it is clear that, if the employer, has contributed to the retirement plan, unless the employee also contributing to the plan provided more than half of the cost of the benefits, the employee's unemployment compensation benefits must be reduced. Nothing in the statute suggest that the legislature intended that the employer's contributions simply be compared to the employee's in determining if a reduction is proper."


3, 14:NA

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