JACKSON - The Mississippi Supreme Court has ruled a pension system for state lawmakers constitutional, ending a dispute in its third year.
The justices, in a 5-2 decision, said the system the Legislature enacted for themselves in 1989 was legal.
Presiding Justice Jim Smith, writing for the court, said while some may question the wisdom of enacting a separate retirement plan, lawmakers' reasons were "legitimate, reasonable and plausible."
Smith said many states operate separate retirement systems for different groups of employees and those plans have been found legal.
A Hinds County judge in 2001 threw out a lawsuit against the Legislature's retirement system, which was filed by former Chancery Judge Chet Dillard. Dillard sued in June 2000 shortly before lawmakers repealed a sweetened pension package enacted for themselves.
Dillard claimed in his lawsuit that the retirement increase violated the "equal benefits under all laws" clause of the Mississippi Constitution and that legislators should not be in the retirement plan because of their part-time employment situation.
The state attorney general's office contended state law did not support Dillard's position. The attorney general said state law allowed for different categories of employees, such as the Highway Patrol, which has a separate retirement system.
Lawmakers are members of the state retirement system and their separate system, which pays them half again as much as state employees receive. Also, unlike state employees, their expenses are calculated toward retirement benefits.
Lawmakers said the separate retirement plan was enacted at a time when legislative salaries were about $17,000 to $18,000 annually. The average salary now is about $22,000 with some lawmakers making more.
Justice Smith said arguments by the attorney general were that the plan was put in place because of the uncertainty in holding a legislative office, the hours lawmakers are on call, the time taken away from their private jobs and the need to attract qualified people to run for office.
Smith said Dillard wanted the courts to settle a political dispute.
"The proper forum to address his concerns is the Legislature, which clearly has the sole authority to establish different systems of benefits for any group including themselves, so long as the judgment of the Legislature has a rational basis for classifying that group differently," Smith wrote.
Presiding Justice Chuck McRae, in a dissent, said the decision allows the Legislature "to enhance themselves with a silent pay raise and allow it to circumvent the constitution at the expense of all other state employees in the retirement system."
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