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Public employees sue over pension cuts

By The Associated Press
Published On: Oct 31 2013 06:32:28 PM MDT
Bozeman City Commission votes to increase their own pay
HELENA, Mont. -

Retired public employees argue in a new lawsuit that pension cutbacks are an unconstitutional contract change.
    
The lawsuit filed Wednesday challenges portions of the pension overhaul plan put in place earlier this year by lawmakers and signed by Gov. Steve Bullock.
    
The measure cut annual inflationary increases of 3 percent given to retirees.  The lawsuit does not challenge the portion of the overhaul that also increased the amount paid into the system by employees and employers.
    
An actuary has said the measure will balance the public employee pension system in about 16 to 25 years. If the lawsuit is successful, it could take about 40 years to balance the system.
    
Teachers recently filed a similar lawsuit objecting to the portion of the reform plan affecting their group's retirees.