Pension raid halted.
In a major legal victory for Wisconsin public employees, a county circuit judge ruled that state pension funds are to be used for funding pensions--and nothing else.
When the state lifted $86 million from the fund in 1987 to free up money for business development, the Wisconsin Education Association Council filed suit. "Our objective," says WEAC legal counsel Bruce Meredith, "was to maintain the integrity of the fund."
"If the state were allowed to do this," adds co-counsel Tony Sheehan, "the next step would be to allow the state to pave roads with the money."
If the ruling survives likely appeals, the state will be required to reimburse all retirees for the benefits they lost as a result of the raid. Total cost, including interest: nearly $100 million. For the average retiree, that could mean a 2.6 percent fatter pension for life.
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|Title Annotation:||WISCONSIN; pension funds|
|Article Type:||Brief article|
|Date:||Feb 1, 1992|
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