“The taxpayers have cause to celebrate with today’s ruling. The effects of this case could have been far reaching, hampering legislative authority, leaving the state vulnerable and costing taxpayers billions of dollars. The ruling doesn’t mean we are breaking a promise to state employees but enables us to manage pensions to keep them viable in the long-term.”
In 2013 the state supreme court heard arguments regarding the constitutionality of the legislatures changes to the state pensions that repealed gain-sharing and cost of living adjustments. Both measures were adopted in the 1990s but by the mid-2000s the costs associated with continuing these enhancements were having serious negative effects on the long-term viability of the pension system and the state budget.
Please click here to read the court’s opinion.