SALEM — The Oregon Supreme Court hears oral arguments Tuesday on a lawsuit challenging legislative changes to the state pension system. Gov. John Kitzhaber and the Legislature last year reduced retirees’ annual cost of living increases. Public employees quickly appealed. For decades, pension checks have increased at a rate of 2 percent annually. The legislative action taken to reduce the system’s unfunded liability reduced the adjustment to 1.25 percent on benefit amounts up to $60,000 and 0.15 on benefits exceeding $60,000.

PORTLAND, Ore. (AP) — The Oregon Supreme Court has handed a 90-day suspension to a Salem lawyer accused of ethics violations for the way he allocated settlement money to victims of alleged sexual abuse by a Catholic priest.