Big victory today for Minneapolis taxpayers

I’m very happy to tell you that Minneapolis taxpayers won a big victory today.

In a clear ruling issued just this morning, the Minnesota Court of Appeals agreed with the City that two closed pension funds have overpaid pensioners by wrongly calculating their own benefits, and that those overpayments need to be recouped.

Simply put, the court agreed with us: the funds have overcharged Minneapolis taxpayers, and Minneapolis taxpayers will get relief.

The Court of Appeals upheld the critical parts of a lower-court ruling from one year ago that found that the funds overpaid their benefits from 2000-09, meaning that Minneapolis taxpayers were overcharged to the tune of millions of dollars.

City Council Members and I are very pleased with this ruling. It affirms what we’ve said all along: that taxpayers should and will pay City pensioners every penny that pensioners have earned, but not more than pensioners have earned.

It’s taken a long time to win justice for taxpayers: it was five years ago that we took these closed-pension funds to court to recover the overpayments that the funds refused to return to taxpayers. Today’s ruling is the latest in a series of court victories that show that defending taxpayers has been the right thing to do.

Because of today’s ruling, we have new and expanded options for protecting taxpayers, and we’re evaluating all of them. We will let you know what steps we take next, but I wanted to share the good news with you right now that Minneapolis taxpayers have won a strong, clear victory.


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