Colorado

Feb 28, 2010 11:59 AM by Associated Press

Workers file suit challenging pension legislation

Colorado government workers have filed a class-action lawsuit challenging a bill signed this week that cuts their retirement benefits because of the tough economy.

The workers say the legislation Gov. Bill Ritter signed is unconstitutional because it reduces benefits that were promised to them. Attorneys say the lawsuit covers about 100,000 workers with
the Public Employees Retirement Association plan who were eligible to retire March 1, 1994 or who retired since then.

The new law calls for no cost of living increase this year, instead of the normal 3.5 percent increase. Future increases will not be higher than 2 percent.

Republican Sen. Josh Penry, a co-sponsor of the legislation, said the cuts are necessary to prevent the fund from going bankrupt.

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