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Judge Rules Pension Contribution Requirement Unconstitutional

March 7th, 2012 by Mike Vasilinda

Judge Jackie Fulford has declared unconstitutional a 2011 law requiring public employees to contribute three percent of their salaries toward their pensions. The judge is also ordering the Florida Retirement System to refund the money collected since July, But as Mike Vasilinda tells us, legal maneuvering is likely to put the refund on hold.

560 Thousand public employees have been contributing three percent of the salaries toward their pensions since July.

Judge Jackie Fulford found lawmakers violated a 1974 law that gave workers a fully funded pension as part of their employment contract. The Florida Education Association, which brought suit, was ecstatic.

“The court today said that a promise is a promise, a contract is a contract,” Ron Meyer, attorney for the FEA, said.

Private attorneys paid nearly half a million by the state to argue the case had nothing to say.

“I really don’t have a comment at this time,” Doug Hinson, attorney for the state, said.

And for employees like Paul Brewer, living on three percent less has been painful.

“Close to two thousand dollar a year is what we lost last year, and anybody in this economy knows what two thousand dollars can buy,” Brewer said. “That’s like your groceries and gas money.”

Lawmakers are labeling the judge an activist even though she was appointed by a Republican Governor.

But the teachers union president who brought the suit says the ruling sends a message to lawmakers and the Governor.

“They have decided in this state over and over again to provide tax relief to big corporations,” FEA president Andy Ford said. “The people who put contributions into their campaigns, and it needs to stop.”

This decision isn’t likely to be the last word on the pension contributions. The case is certain to be appealed, with the final decision coming from Florida’s Supreme Court.

The judge has ordered the state to refund the nearly 900 million dollars it has collected so far. The refund will likely wait until all appeals are finished.

The ruling does not affect pension contributions by employees hired after July first.

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