Arizona Supreme Court

The Honorable Philip Hall, Plaintiffs/appellees/cross-Appell — Bolick, J., Concurring in Part and Dissenting…

November 10, 2016241 Ariz. 33

Summary

Justice Bolick, joined by Justice Trebesch, dissents from the conclusion that statutory increases in EORP employee contribution rates are unconstitutional, while concurring in the result concerning the permanent benefit increase formula. The opinion reasons that the PBI formula is a protected pension benefit, but contribution rates are not benefits and instead are governed by the Contract Clause, requiring consideration of the State's asserted mutual-mistake and actuarial-soundness defenses. Because the trial court did not address those defenses, the opinion would at least remand the contribution-rate issue and would uphold the changes on the record presented. Justice Cattani, concurring, would hold that the contribution rate itself is a protected benefit under the Pension Clause and would affirm without remand.