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St. Paul, Minn. (AP)

Retired Minn. employees sue to undo pension trims

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Two retired Minnesota state employees have filed a class action lawsuit arguing that the Legislature has violated the contractual rights of public sector retirees to receive pension benefits at levels promised when they retired.

In the legislative session that ended Monday, state lawmakers curtailed the yearly rate of increase for pension benefits from a 2.5-percent annual increase to between 1 and 2 percent depending on the pension fund.

Attorneys for the state employees say that violates the U.S. and Minnesota constitutions.

The attorneys say retirees will lose millions of dollars in promised benefits. They say thousands of public sector retirees are eligible to join the lawsuit.

(Copyright 2010 by The Associated Press. All Rights Reserved.)