Judge Rules Pension Changes Harmed Employees, But Still May Be Found Reasonable and Necessary

As reported by the Baltimore Sun, a Federal judge ruled that changes made to Baltimore City’s police and fire pensions harmed employees, but he still may find that the changes were “reasonable and necessary to serve an important public purpose.”

U.S. District Court Judge Marvin J. Garbis decided that police and firefighters who were either receiving benefits or eligible to retire were “substantially impaired” by the city’s decision to eliminate a gain-sharing mechanism for retirees. Garbis also allowed the plaintiffs who are already receiving pension benefits to proceed as a class.

Changes to the pension systems were approved in June 2010 to address budget concerns.

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