Honorable Philip Hall v. Elected Officials’ Retirement Plan

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In 2011, the Arizona Legislature enacted Senate Bill 1609, which changed the Elected Officials’ Retirement Plan by changing the formula for calculating future benefit increases for retired Plan members and increased the amount that employed Plan members must contribute toward their pensions. Employed members of the Plan challenged the Bill, arguing that the unilateral changes to the benefit increases formula and to the amount they were required to contribute toward their pensions violated the Pension Clause and that the legislature could not unilaterally change the terms of their pensions to their detriment. The trial court agreed and invalidated the provisions at issue. The Supreme Court (1) affirmed the grant of summary judgment to the employed Plan members, holding that the Bill’s change to the benefit increases formula and the contribution rate violates the Pension Clause and the Court’s holding in Yeazell v. Copins; and (2) contrary to the trial court’s ruling, the employed members are entitled to attorneys’ fees and prejudgment interest, and the judgment must run against the State as well as the Plan. View "Honorable Philip Hall v. Elected Officials’ Retirement Plan" on Justia Law