EMPLOYEES' RETIREMENT SYSTEM

 

     Section 2.  Membership in any employees' retirement system of the State or any political subdivision thereof shall be a contractual relationship, the accrued benefits of which shall not be diminished or impaired. [Ren Const Con 1978 and election Nov 7, 1978]

 

Cross References

 

  Employees' retirement system, see chapter 88.

 

Attorney General Opinions

 

  Board of trustees may periodically change and adopt new option factor tables applicable to all members who have not retired prior to effective date of tables.  Att. Gen. Op. 82-3.

 

Case Notes

 

  The non-impairment clause of this section protects not only system member accrued benefits, but also as a necessary implication, the sources for those benefits; because of this implied protection, Act 100, L 1999 violated this section by impairing the sources used to fund the constitutionally protected "accrued benefits".  114 H. 302, 162 P.3d 696.

  Where employees' retirement system (ERS) trustees were alleging in lawsuit that Act 100, L 1999 was unconstitutional as being violative of this section, their claims were not "founded upon any statute of the State; or upon any regulation of an executive department; or upon any contract" and were not referred to the court by the legislature; thus, trustees' claims were not cognizable under chapter 661, and, therefore, were not subject to the statute of limitations set forth in §661-5.  114 H. 302, 162 P.3d 696.

 

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