OPERS to the Governor....You cut our funding, we sue you!

From John Curry, June 25, 2009
I wonder if the administration at STRS would have this kind of courage? John
Dayton Daily News
Ohio workers pension fund may sue if contributions cut

By Laura Bischoff , June 25, 2009
The Ohio Public Employee Retirement System would likely sue the state if it reduces state workers pension contributions to help balance the budget, the pension system director told lawmakers.
In a move designed to help balance the upcoming budget, Gov. Ted Strickland has proposed writing an IOU to 60,150 state workers, promising to pay back contributions to the OPERS down the road. Reducing the contribution rate from 14 percent to 8 percent over two years would save the state more than $250 million, according to the Strickland administration.
But OPERS Director Chris DeRose said this move would cut into the fund’s ability to provide retiree health care benefits and erode the system’s financial solvency.
And DeRose said OPERS would consider suing the state if it follows through on Strickland’s proposal. Similar lawsuits in other states, such as California and North Carolina, were won by the pension systems when the courts found the state was obligated to pay and make up for lost investment income, according to OPERS.