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Thursday, March 8, 2012

Judge made the right decison in the pension case

From the Palm Beach Post

Leon County Circuit Judge Jackie Fulford's ruling Tuesday that struck down the 2011 law requiring a 3 percent pension contribution from state employees likely will reach the Florida Supreme Court quickly. That's good, because the budget implications are too serious to let the uncertainty linger.

Regardless of whether the high court affirms or reverses her, Judge Fulford is not guilty of judicial activism, despite knee-jerk accusations in Tallahassee. Gov. Scott said, "This is another example of a court substituting its own policy preferences for those of the Legislature." Senate President Mike Haridopolos, R-Merritt Island, said "46 other states already ask state employees to contribute to their own pensions" and called the ruling "a radical departure from past precedent."

In fact, Judge Fulford explained that she is upholding the Legislature's 1974 law establishing the non-contributory pension with a cost-of-living adjustment. It says the benefits are "legally enforceable as contract rights" and "shall not be abridged ." What 46 other states do has no bearing on Florida's law.

Judge Fulford did not ignore the 1981 precedent set by Florida Sheriffs Association vs. Department of Administration. Rather, she explained why the current case is different. Changes within the established pension system are allowed; but the new pension law, Judge Fulford said, would "gut" that system.

Judge Fulford said a compelling state interest - such as keeping the pension fund solvent - might allow the Legislature to make major changes. But she noted that the fund is sound. So the state essentially took the money from teachers and other employees to plug unrelated budget gaps. The state can't legally do that absent collective bargaining.

Even if the high court upholds Judge Fulford, teachers and other state workers whose unions filed the lawsuit might wind up paying anyway. The Palm Beach County School District, for example, saved $27 million in pension costs under the law. If roughly the same expense goes back into next year's budget, along with repayment of that amount from this year, it could mean layoffs and kill any hope of raises. The same thing could happen on a bigger scale if county governments, whose employees are in the Florida Retirement System, have to repay and replace $600 million and the state has to repay and replace $1 billion.

Judicial activism is when a judge ignores the law. This isn't it. Political activism becomes illegal when the governor and Legislature ignore the constitution. Judge Fulford makes a good case that did happen here.

- Jac Wilder VerSteeg,

The Palm Beach Post Editorial Board

http://www.palmbeachpost.com/opinion/editorials/budget-trick-didnt-fool-judge-2223526.html

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