Lawyers in an employee lawsuit that could cost DeKalb County taxpayers tens of millions of dollars will face off at an appeals court hearing Wednesday.
Two employees of the DeKalb school district sued after the district stopped payments to tax-sheltered annuity accounts. Their attorney, John Salter of Marietta, said that as a class action case the amount owed could top $50 million.
The annuity plan, which supplements the state retirement plan for teachers, bus drivers and other employees, was established as an alternative to Social Security. The school system had been paying into it since 1979, but suspended payments in 2009 because of a budget shortfall.
Teacher Elaine Gold and psychologist Amy Shaye sued last year, alleging that the suspension was a breach of contract. They are demanding the restoration of all payments for three years and counting.
DeKalb Superior Court Judge Clarence Seeliger ruled in October against DeKalb's claim that it was immune to the suit.
At 10 a.m. Wednesday the Georgia Court of Appeals will consider the matter, with lawyers from each side making their case to either stop the suit or continue it in Superior Court. A decision could take months.
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