Skip to comments.CA: Judge rules in favor of teachers in $500 million pension battle
Posted on 05/04/2005 8:21:21 PM PDT by NormsRevenge
SACRAMENTO (AP) - A Sacramento County judge sided with the teachers' retirement system Wednesday in its battle with the state over a $500 million pension fund contribution.
Superior Court Judge Judy Holzer Hersher ruled that former Gov. Gray Davis and legislators broke a "clear and unambiguous" requirement when they withheld the payment as part of efforts to balance the state's 2003-04 budget.
The money was supposed to be used for supplemental payments to 63,000 retired educators or their survivors to restore pension purchasing power eroded by inflation.
Carolyn Widener, chairwoman of the California State Teachers' Retirement System's board, said the lawsuit was filed reluctantly.
"The board is sensitive to the state's very real budget difficulties," she said. "But in the end our focus must be on California's educators - on what's best for them."
A spokesman for Gov. Arnold Schwarzenegger, H.D. Palmer, said administration officials were reviewing the decision and contemplating an appeal.
He said the state withheld the payment based on the conclusion that the retirement fund was able to meet its obligation without the state contribution.
But the judge ruled that withholding the payment amounted to breaking a contract.
I love how she said the focus should be on Calif educators....haha.....I wish those educators would focus on their students.....idiots
Scary. Zero-based budgeting is now a "contract". God help us all.
"...breaking a contract."
Surely this doesn't mean unwritten contracts that assured lots of votes for Grey Davis' reelection, nope.
Just as CA is in the red our country will be in the RED if the Socialist get back in power. Look at France and Germany -- ready to go bankrupt!
What exactly is the point of investing in a retirement system when the state can be forced to normalize the returns the trustees had hope to realize. Do you suppose this same judgette will require repayment to the people of California in the event that the retirement system realizes gains in excess of anticipated returns? And what, exactly is to prevent the trustees now from overestimating the anticipated returns in the hope that in some future court proceeding a precedent has now been established?
Good! Failing to make contributions to the fund consistent with known obligations is fiscally irresponsible.
You end up with a bigger problem later, as San Diego is finding out.
Reforming pensions is another subject all together.
Over-extension of benefits? Sounds like San Diego's problem. ;)
Hey Kalifornia taxpayers! - - Bend over, lol.
Didn't the voters in Kalifornia actually PASS a proposition that a certain (huge) percentage of the state budget MUST go to the education mafia?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.