Gov. Mike Easley and others violated the constitution in 2001 by intercepting $225 million headed for state pension funds to help cover a budget shortfall, a Superior Court judge ruled Wednesday.
Easley has defended taking the state’s contributions to the pension funds, saying it was his legal duty to balance a budget that was off by $850 million. Some of the money was repaid by the end of the 2001, but $130 million is outstanding.
Fourteen current and former state workers sued, arguing that the decision hindered the financial soundness of the pension plan.
After hearing oral arguments in February, Superior Court Judge Joseph John agreed that the Easley administration and other state officials violated a state constitution provision requiring that retirement funds be used only for their intended purpose.
by Locker Room contributor
