Friday, March 30, 2012

Legislative Auditor's March 26, 2012 Memorandum Questions Constitutionality of Retirement Bills

Legislative Auditor Daryl Purpera released a memorandum issued March 26, 2012 by Strasburger Attorneys at Law that raises questions about the constitutionality of certain proposed retirement legislation. The executive summary of the memorandum states on page 2:

“Therefore, we conclude that House Bills 53, 55, 56, and Senate Bills 51, 52, 42, and 47, in their current form, face a likelihood of being challenged in the courts. If such challenges occur, we think it more likely than not that a court will rule such then-adopted bills as unconstitutional to the degree such bills affect the accrued benefits of current members and retirees.”

The bills noted above relate to five year final average compensation computations, increasing employee contributions from eight to 11 percent, and increasing the retirement eligibility age to 67 in order to receive full benefits.

Read the full memorandum here.

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