APA January Lump Sum Payment Status

This message is to address the anticipated and upcoming health care savings disbursement, per the ratified 2014 – 2017 wage and health care agreement, slated to be included in your January paycheck.

At this time, the University has informed the APA that they will only issue partial payment in your January paycheck. Specifically, we anticipate that members will be issued a gross, lump sum payment of $1,042.43, subject to taxes and other deductions and garnishments.   As ratified under the contract, the payment will be issued in full for 100% full-time equivalent (FTE) status employees and reduced on a proportional basis for part-time employees.

Unfortunately, an MSU retiree has filed a lawsuit asserting he should be included in the payment. As you may recall, the ratified health care agreement only applies the benefit for current members.

Furthermore, in a disappointing response, the University has chosen to file an interpleader claim with the local court.  The function of University’s response means the University has reduced the total aggregate amount that was negotiated and ratified for a payment disbursement in your January paycheck. That money has now been left to the court to determine who has the legal right and interest to those funds.

The APA has expressed a great deal of disappointment with the University’s response to our mutual and legally ratified agreement. We believe we will prevail in this lawsuit and we are confident that the total amount negotiated in our ratified wage and health agreement must be provided to current union members.

Finally, in effort to enforce our contract as ratified, the APA, with assistance from our state affiliate, the Michigan Education Association, are using all legal means necessary to ensure the wage and health care agreement is enforced as ratified by the APA membership and the University.

Again, members can still anticipate a gross payment in their January paycheck of $1,042.43 subject to taxes and other deductions and garnishments. We will continue to keep you informed with any developments.