Aug 06 2008
Appeals Court Rules Against Easley on Pension Money
RALEIGH, N.C. — Gov. Mike Easley was wrong to intercept $225 million headed to North Carolina state employee pension funds to help cover the 2001 budget shortfall because the state and federal constitutions protect them, an appeals court ruled Tuesday.
While all of the money ultimately was repaid to the retirement system funds and pension benefits didn’t suffer, the 14 former and current state workers who first sued in 2002 want to ensure future governors can’t divert pension benefits during a fiscal crisis.
Instead of responsibly balancing the budget, Easley and the legislature robbed Peter to pay Paul.
