A class action lawsuit over Atlanta Mayor Kasim Reed’s 2011 pension reform could be headed to the Georgia Supreme Court.
Attorneys for a group of city workers who sued last year over pension changes say they plan to appeal a Fulton Superior Court judge's November decision to uphold the city's reform.
The group filed a notice of appeal last week, with hopes the state’s highest court will rule on whether the increased pension contributions violate the state constitution.
John Bell, who represents the employees, praised Fulton Superior Court Judge John Goger's decision as thoughtful and comprehensive, but said he believes the Supreme Court will view the case differently. Should the Supreme Court take up the case, it could be heard sometime next year.
“I am confident we have merit in our positions and this is not a frivolous appeal,” Bell said. “I hope that the erudite justices of the Supreme Court agree with us.”
Atlanta City Attorney Cathy Hampton said the employees’ plans to appeal “needlessly challenges” Goger’s order.
“The city remains confident that the Superior Court’s decision will be upheld, and that the legality of Atlanta’s historic pension reform will be confirmed,” she said.
A handful of employees representing Atlanta fire, police and general workers sued the city last November, saying Reed’s decision to force employees to pay 5 percent more toward their retirement benefits was in violation of their contract and, therefore, unconstitutional. Such an increase, the plaintiffs argued, must also increase their pension benefits.
Reed and city officials successfully countered that the pension contribution increase is allowed under Georgia law. The mayor has long said overhauling the employee retirement benefits program was critical to the city’s financial stability and will help Atlanta cover a $1.5 billion unfunded pension liability.
Reed argued that, without increasing contributions, the city can’t afford to pay the full benefits eventually owed to workers. And that could lead the city into default.
Pension reform was “one of the most important things that my administration has done to stabilize the finances of the city of Atlanta,” Reed has said.
In a lengthy order issued last month, Goger agreed that the city had the right to modify its pension plan.
Had Goger sided with the employees, the move would have effectively reversed Reed’s pension change, leaving Atlanta on the hook for more than $40 million in restitution. That would have blown a gaping hole in the mayor’s plans to fund an infrastructure bond worth up to $250 million next year, pending voter approval, to address a billion-dollar backlog in street, sidewalk and bridge repairs.
Employee representatives have said they sued because their concerns about the reform’s legality went unanswered by the city.
The lawsuit has worsened relationships between Reed and public safety unions, which in recent years have fought for higher raises and for the administration to address what they say are salary inequity issues. Reed said he would not give raises while the lawsuit is underway.
Speaking at a press conference to celebrate Goger’s ruling last month, Reed said the victory marked a “special day” for his administration.
Asked about the prospect of another legal challenge, the mayor said: “Good luck appealing this decision to the Georgia Court of Appeals and the Georgia Supreme Court. Good luck.”
About the Author
