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Legal Update of Public Pension Issues
Robert D. Klausner
Klausner & Kaufman, PA

NCPERS legal counsel Bob Klausner today reviewed several of the more significant legal issues that pension funds face. In his presentation he summarized recent case law decisions that demonstrate trends in litigation involving public employees and their funds.

Klausner began by stressing that one of the most difficult tasks for public pension fund administrators is understanding the variety of laws that apply to them. Many plans are covered by distinct local, county or state laws. The diversity of laws makes it important that funds carefully choose legal advisors who understand the legal requirements in their fund’s jurisdiction.

Klausner also cited a number of recent legal cases that he believes predict trends in litigation. These cases involved such issues as the following:

  • the hiring of temporary employees, often to avoid paying these individuals benefits, such as pensions;
  • accusations of age discrimination, cases often brought by the EEOC (because individuals are constitutionally prohibited from suing a state pension plan);
  • reemployment of retirees, specifically concerning their ability to continue to draw retirement benefits after reemployment; and,
  • disparate treatment of employees, notably in situations where older employees receive different levels and types of benefits than younger employees.

Klausner has represented public employee pension funds since 1979. He also consults with numerous state and local governments on pension issues.

 

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