State workers sue over pension changes

ALBUQUERQUE (KRQE) - Multiple unions representing more than 60,000 state and public school employees filed a lawsuit against the state of New Mexico on Monday, accusing the state of violating employees' constitutional rights by decreasing contributions to public employee pension funds and making employees fill the gap.

"We believe this was in order to remedy a general budget shortfall, and we believe it's just not fair," said attorney Shane Youtz at a news conference outside the Bernalillo County District Courthouse on Monday.

State legislators voted in the last legislative session to decrease the state's contribution to public employees' retirement funds by 1.5 percent over the next two years and increase employees' contributions by the same amount.

Gov. Bill Richardson signed the act into law in April.

The changes take effect July 1.

The move affects employees making more than $20,000 annually — a total of 66,000 state and public school employees.

A group of union leaders and state employees gathered outside the courthouse Monday, saying the increased contribution is something they can't afford.

"We are the working class and the middle class who spend money, whatever money we do have, right here in New Mexico," said state employee and union representative Robin Gould.

Even though the employees will eventually get the money back through their pensions, the unions claim the change equates to an unfair, unconstitutional wage tax.

"It's simply not right that the employees of the state of New Mexico should have to bear the burden or pay the cost of a general budget shortfall," Youtz said.

The move was necessary in order to deal with a $500 million budget shortfall, according to state legislators who voted in favor of the change.

"If the state loses this lawsuit we'll probably have to have a reduction in the number of employees we have, or reduce salaries — one or the other," said Senate President Pro Tem Tim Jennings.

The lawsuit seeks an injunction to stop the act from taking effect next month.