PIERRE, S.D. (AP) — The South Dakota Legislature acted legally when it trimmed the annual cost-of-living increase for retirees in the state's public pension plan during the recent economic crisis, a state judge ruled Wednesday.
After the economic downturn in 2008 and 2009 caused the value of assets to fall in the South Dakota Retirement System, the Legislature passed a law pegging annual cost-of-living adjustments to the system's financial health. The annual increases had been 3.1 percent, but were cut to 2.1 percent in the last two years.
Some retirees filed a lawsuit arguing the cut was unconstitutional because it interfered with their retirement contract and amounted to a taking of their private property.
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