Appeals Court Finds Mostly for City in Pension Squabble

An appeals court today upheld portions of a 2010 district court decision that two closed pensions covering Minneapolis police and firefighters overcharged the city by millions of dollars.

The Minnesota Court of Appeals decision, which was published Tuesday (See PDF on the right), partly affirmed and partly reversed the earlier ruling. It affirms the finding that the pensions overcharged the city, but said the district court erred in ordering the pensions to oppose all "challenges to recoupment" from its own members.

It is mostly a victory for the city.

Minneapolis Mayor RT Rybak said in his letter to constituents (see PDF on the right) that the ruling vindicated the city's stance on the pensions.

"Because of today’s ruling, we have new and expanded options for protecting taxpayers, and we’re evaluating all of them," he wrote.

The city has lobbied energetically for reform of the two pensions, although a in the regular session of the legislature.