Governor's Statement Regarding Federal Court Action on PERS Case
United States District Court Judge Mosman, of the Oregon District Court, granted the State’s motion for summary judgment in Robertson v. Kulongoski today. The Robertson case is the federal court case challenging the 2003 Legislature’s revisions to the PERS system. Judge Mosman upheld the reforms and rejected the plaintiffs’ allegations that the reforms violate contracts rights protected by the Contract Clause of the United States Constitution.
In response to the order, Governor Ted Kulongoski issued the following statement:
“The Oregon District Court today granted our motion for summary judgment in the Robertson case. This decision is a victory for Oregon and Oregon’s economy. In his order, Judge Mosman found that the 2003 Legislature’s revisions to PERS did not breach workers’ contracts because the PERS revisions do not apply retroactively. Judge Mosman’s ruling reiterates what we have said all along – that the Legislature may make such changes to the accrual of future benefits for future work. This ruling strikes a sensible balance between protecting employees’ contract rights while allowing enough flexibility to address the important needs of the future.
Last session, the legislature enacted bipartisan legislation to reform PERS and to create the Oregon Public Service Retirement Plan (OPSRP), a hybrid plan that includes a guaranteed pension and an individual savings account for new public employees. As I said when the legislation first passed, I am confident that these reforms result in a flexible, fair, adequate and sustainable system.”
The Oregon Supreme Court is still considering the challenges to the 2003 PERS reforms that were brought in state court.
Media Contact:
Marian Hammond, 503-378-6169
Anna Richter Taylor, 503-378-6496
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