The Oregon Supreme Court says some of the 2013 cuts to public-employee retirement benefits are unconstitutional.
The court’s ruling on Thursday means state and local governments will likely have to increase their pension contributions in future years.
Oregon Gov. Kate Brown issued a statement shortly after the ruling, saying she’ll be “assessing next steps, including the short and long term fiscal needs of PERS.”
Facing rising retirement costs for teachers, police officers and other public employees, Oregon lawmakers voted in 2013 to reduce benefits. They scaled back the annual inflation adjustment, which was previously 2 percent, among other changes.
Retirees challenged the changes in court, saying they violate the contractual agreement between the state and its workers.
The justices ruled that the cuts to the inflation adjustment can affect only the pension benefits earned after the law was enacted.