By John V. Berry, Esq., www.berrylegal.com
A new case was handed down involving Baltimore police pensions. The case, handed down by a Baltimore Judge, held that Baltimore managers broke their contract with many police officers, firefighters and retirees in 2010 by eliminating a key pension provision that has cost retirees millions in pension benefits. Baltimore Judge Julie R. Rubin ruled Tuesday that the former Mayor's overhaul of pension benefits unlawfully withdrew a "variable pension benefit" that paid out more money to retirees when the stock market improved. The Baltimore mayor’s new law ultimately cut approximately $400 million in long-term pension costs by (1) reducing benefits, (2) raising the retirement age and (3) requiring higher contributions from workers. While the judge's ruling is positive, many of the underlying issues must still go to trial.
The article by the Baltimore Sun can be found here.