The first lawsuit challenging the constitutionality of the state’s new Emergency Financial Manager law has been filed in federal court by two Detroit city pension boards.
The Detroit News reports:
The city’s two pension funds sued Gov. Rick Snyder and state Treasurer Andy Dillon in federal court today to block part of a new emergency manager statute.
The suit alleges the emergency manager statute is unconstitutional, would modify the City Charter and collective bargaining agreements and allow for the removal of pension fund trustees. The suit also claims the law could potentially allow for the funds to be dissolved and have the assets transferred to another retirement system.
I expect another suit, filed by Benton Harbor officials, will be filed soon.