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Gov. Rick Snyder (left) and Attorney General Bill Schuette (right) are going in different directions on a case over a 3 percent contribution toward retiree health care by state employees.

(Emily Lawler | MLive.com)

LANSING, MI -- Gov. Rick Snyder plans to appeal a Court of Appeals ruling that would return a 3 percent retirement health care contribution to teachers, but he won't have any help from Attorney General Bill Schuette.

The case stems from a 2010 law that required school employees to contribute three percent of their pay to retiree health benefits. That three percent was collected from July 2010 to Jan. 2013 before a legal battle threw the money into escrow. It now tops $550 million.

The Court of Appeals in a June 7 ruling said that the money was collected unconstitutionally and should be returned to teachers.

Schuette said Tuesday he would not represent Gov. Rick Snyder on an appeal.

"After reviewing the appellate decision in American Federation of Teachers v. State of Michigan ... the Attorney General is declining to provide counsel if the Governor wishes to appeal the 3% MPSERS (Michigan Public School Employees Retirement System) ruling," said Schuette spokeswoman Andrea Bitely.

Less than two hours later, Snyder's office said he would in fact be pursuing an appeal.

"These payments are necessary for the long-term financial stability of the retirement system teachers rely on for health care benefits after their years of hard work come to a close. Keeping the money in the system will help their investments continue to grow and benefit Michigan educators for decades to come," said Snyder spokeswoman Anna Heaton.

The Attorney General will appoint a Special Assistant Attorney General to the case, Bitely said.

The case has already made it up to the Supreme Court level once, but the court remanded it for further consideration by the Court of Appeals.

The American Federation of Teachers - Michigan and Michigan Education Association have been urging Schuette and Snyder to decline appeal and return the $550 million to employees. The unions delivered 33,000 signatures to that effect last month.

"We've been fighting this court battle for five years, and Gov. Snyder and Attorney General Schuette should stand up for hardworking school employees, not work against them," said MEA President Steven Cook in a press release on June 23, when he helped deliver the petitions to Schuette and Snyder.

Emily Lawler is a Capitol reporter on MLive's statewide Impact Team. You can reach her at elawler@mlive.com, subscribe to her on Facebook or follow her on Twitter: @emilyjanelawler.