It may be time to pay that piper.
Read this article by Ty Tagami at the AJC:
Suit could cost DeKalb millions
The school system in DeKalb County experienced a setback in a lawsuit brought by employees that could someday cost taxpayers tens of millions of dollars, yet a top official says he’s unaware of plans to set money aside in case the county is forced to pay.
Superior Court Judge Clarence Seeliger ruled in October against DeKalb’s claim that it was immune to a lawsuit over suspended payments to a supplemental retirement fund for teachers, bus drivers and other employees.
The case is on appeal, with hearings scheduled for April. If the school system loses the appeal, the lawsuit will continue in the DeKalb court system. So far, the case involves only two plaintiffs, but they are seeking class action status. If it is granted and if the county loses the case, taxpayers could be compelled to make back payments to the thousands of employees in the retirement plan.
The school system had been paying into the plan since 1979, but suspended payments in 2009 because of a budget shortfall. A teacher and a school counselor sued last March, charging the suspension was a breach of contract. They are demanding the restoration of all payments for three years and counting. It’s unclear how much the total could be.
The only calculation available in the court record is for the 2009-10 school year, when DeKalb was scheduled to pay $26.5 million into the tax-sheltered annuity plan.
Assuming the annual contribution — about 6 percent of each employee’s pay — didn’t change much, the total could exceed $50 million, said John Salter, the lead attorney for the plaintiffs.
Yet school board Chairman Eugene Walker said he knows of no plan to save money for the possibility of a payout.
That's the word from the former finance chair who is now our board chair.
Click this link to read the rest...