DENVER—A Denver judge has thrown out a lawsuit challenging a law that lowers cost-of-living increases in pensions for state retirees.
The Denver Post reports that District Judge Robert Hyatt tossed the lawsuit Wednesday before it could go to trial. He disagreed with the argument that a law cutting the increases nullifies the contract with the Colorado Public Employees Retirement Association.
Wyatt ruled the retirees have a contractual right to their pension, but not to a specific formula for cost-of-living raises.
Last year, the Legislature passed a bill aimed at ensuring the pension fund’s long-term solvency by reducing the increases, expected to be 3.5 percent last year. Budget officials had warned that without changes, the plan would go broke in 20 years.
The pension programs covers more than 400,000 public employees.
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Information from: The Denver Post,
