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FEA loses pension injunction but larger case moves forward

By Lynn Hatter

http://stream.publicbroadcasting.net/production/mp3/wfsu/local-wfsu-976144.mp3

Tallahssee, FL – Leon County Circuit Judge Jackie Fulford has ruled against the Florida Education Association's request to steer state-mandated pension contributions into a separate fund. Thursday's arguments centered around where an estimated 800-million dollars a year in contributions would go until the larger case is decided. The teacher's union is challenging the new pension law, saying it is unconstitutional, and as Lynn Hatter reports Thursday's hearing was also a prelude for things to come.

Florida Education Association attorney Ron Meyer argued that there's no current way in the system for employees to be reimbursed if the contribution law is found unconstitutional.

"We want to be sure the three-percent that's being taken from employee salaries is returned to them with interest earned and we think that can be fashioned in a way that creates the least disruption to the system."

Taking up Meyer's argument, Leon County Circuit Judge Jackie Fulford questioned the state on how it could return the money if the law is kicked out.

"How are you going to recover 1.6-billion dollars if you should not have been taking the three-percent all along? You tell me you can't recover 45-million if this money is sequestered, but you can recover 1.6-billion? Because not only will the employees be re-paid if it was taken wrongfully, but then the fund will be short."

State attorney Blaine Winship said the money should continue to go into the state retirement system where it can earn more interest. And, if the state is ordered to give it back, at least employees will get a greater return on what they put in.

"We are talking about high ten's of millions of dollars in interest in what that money will earn. The only question the plaintiffs have put before your honor, is whether they are insecure themselves about getting that money back. There's no basis for this court to conclude that there's an inadequate remedy at law."

At stake is 800-million dollars a year in employee contributions. The longer the case takes to resolve the more that pool of money grows. The case is a preview to arguments for and against the constitutionality of the new law. The Florida Education Association, a teachers union is spearheading an effort to get the law kicked off the books. The FEA's Ron Meyer says he believes employee contributions violate provisions in the constitution dealing with property rights, collective bargaining and contracting.

"The legislature has said pension rights are contractual in nature, and so the current workforce has a contractual entitlement to a non-contributory pension system. They can change it for new employees who begin their employment after July first, but they can't change it for current employees."

But state attorney Blaine Winship says he's sure the state will win out in the end. He cites a Supreme Court has already ruled on the issue in a separate case.

"The Supreme Court is absolutely crystal clear here that, in fact that the collective bargaining agreement does not bind the legislature going forward. That is the point I wanted to make."

Judge Fulford rejected the FEA's motion for an injunction saying the group failed to prove that state employees would be irreparably harmed if the money went into the retirement fund. She also set a date of October 26, where both sides will argue the constitutionality of the new law.