Ore. court hears pension arguments

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.

The Oregon Supreme Court has previously ruled that pension benefits promised to public employees constitute a binding contract.

The state, however, argues that there’s no evidence that lawmakers four decades ago intended cost-of-living adjustments for retirees to be a contract obligation.