Suing Over Atlanta's Pensions

By Charles Edwards

Atlanta, GA – One way or another, a court may have the final word on changes to Atlanta's pension system. Police and fire unions have long threatened to sue over proposed pension changes. However, the Fulton County Taxpayers Foundation says its lawsuit should be the first step in pension reform.

6 months ago, Foundation President John Sherman filed suit about pension changes the city approved in 2001 and 2005. The changes improved retirement plans for Atlanta's police and fire employees.

"These pension law changes were not accompanied by financial impact studies and actuarial studies. Two studies required under the city charter," said Sherman.

Mayor Kasim Reed says his pension reforms would fully fund Atlanta's retirement system by 2041. It also includes moving some, if not all, employees from a defined benefit plan to a defined contribution plan.

"The problem is whether they could legally sweep aside the existing pension laws," said Sherman.

Police and fire unions have threatened to sue over pension changes. If that happens, Sherman doubts the Mayor would win that court case. Two law firms, Troutman Sanders and Littler Mendelson, disagree with Sherman. They wrote Reed's pension reform options are fully supported by the Georgia constitution, statutory and case law. Atlanta City Attorney Cathy Hampton agrees with their opinion.

Sherman's lawsuit gets a court hearing on April 1st.