Arizona Supreme Court
The Honorable Philip Hall, Plaintiffs/appellees/cross-Appellants v. Elected Officials’ Retirement Plan Et…
November 10, 2016241 Ariz. 33
Summary
The court upheld summary judgment invalidating Senate Bill 1609's retroactive changes to the permanent-benefit-increase formula and employee contribution rates for existing EORP members. It held that the formula change violated the Pension Clause and that both changes breached vested pension-contract rights because the Legislature could not unilaterally alter those terms to the members' detriment. The court also held that the members were entitled to attorneys' fees, prejudgment interest, and relief against the State, although it denied fees incurred on appeal. Judge Cattani concurred, reasoning that contribution rates also independently constitute protected pension benefits, while Judge Bolick, joined by Judge Trebesch, would have upheld or remanded the contribution-rate issue under the Contract Clause.