The contentious plan to revamp the state’s floundering retirement systems was overturned in State Supreme Court on Friday.
The high court knocked down the law not because of content, but because of how it passed. State law requires a supermajority for this kind of bill to progress. The legislature sent this one to the governor’s desk with only the majority’s approval.
Representative Kevin Pearson, chairman of the House Retirement Committee, has prepared a bill that he hopes will improve the cash balance plan – despite that the plan is the subject of ongoing litigation. The plan was overturned in court because it didn’t get a two-thirds vote in the legislature.
If the State Supreme Court does uphold the decision, the bill could be used as a safety-net, and the cash balance plan could be brought before the legislature a second time.